International Assets Investment Management LLC Acquires 25,000 Shares of Sysco Corporation $SYY

Key Points

• International Assets Investment Management initiated a Sysco position, buying 25,000 shares worth about $1.95 million in the third quarter; institutional investors collectively own 83.41% of the stock.
• Sysco reported quarterly EPS of $1.19, in line with estimates, while revenue of $21.74 billion fell short of expectations but rose 2.8% year over year.
• Analysts have an overall Moderate Buy rating and an average price target of $90.42. Sysco’s quarterly dividend of $0.55 per share equates to an annualized yield of about 3.0%.

International Assets Investment Management LLC purchased a new stake in shares of Sysco Corporation (NYSE:SYY - Free Report) during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 25,000 shares of the company's stock, valued at approximately $1,949,000.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Sysco during the second quarter valued at about $3,596,356,000. Bank of America Corp DE bought a new stake in shares of Sysco in the second quarter valued at approximately $482,589,000. Primecap Management Co. CA purchased a new stake in shares of Sysco during the 2nd quarter valued at approximately $313,503,000. Bank of New York Mellon Corp purchased a new stake in shares of Sysco during the 2nd quarter valued at approximately $273,323,000. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new position in Sysco in the 2nd quarter worth approximately $203,861,000. Institutional investors own 83.41% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on SYY shares. Piper Sandler lifted their price objective on shares of Sysco from $77.00 to $84.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. JPMorgan Chase & Co. dropped their target price on Sysco from $100.00 to $95.00 and set an "overweight" rating on the stock in a research report on Tuesday, September 29th. Weiss Ratings raised Sysco from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 15th. UBS Group lifted their price target on Sysco from $90.00 to $95.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Finally, Citigroup reiterated a "neutral" rating on shares of Sysco in a research note on Monday, October 26th. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Sysco presently has an average rating of "Moderate Buy" and an average target price of $90.42.

Sysco Price Performance

Shares of NYSE SYY opened at $74.12 on Wednesday. The firm has a market capitalization of $36.46 billion, a P/E ratio of 20.25, a P/E/G ratio of 2.30 and a beta of 0.66. The company has a quick ratio of 0.77, a current ratio of 1.28 and a debt-to-equity ratio of 4.62. The stock's 50-day simple moving average is $80.30 and its two-hundred day simple moving average is $80.52. Sysco Corporation has a twelve month low of $68.19 and a twelve month high of $91.85.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $1.19 earnings per share for the quarter, meeting the consensus estimate of $1.19. The firm had revenue of $21.74 billion for the quarter, compared to analysts' expectations of $22.02 billion. Sysco had a return on equity of 95.05% and a net margin of 2.08%. The company's revenue was up 2.8% compared to the same quarter last year. During the same quarter last year, the firm posted $1.15 EPS. As a group, equities analysts anticipate that Sysco Corporation will post 5.09 EPS for the current fiscal year.

Sysco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 2nd were paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend was Friday, October 2nd. Sysco's payout ratio is currently 60.11%.

Insider Activity at Sysco

In other news, EVP Ronald Phillips sold 7,350 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $83.61, for a total value of $614,533.50. Following the transaction, the executive vice president owned 38,650 shares of the company's stock, valued at $3,231,526.50. This represents a 15.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 15,525 shares of company stock valued at $1,299,736. 0.55% of the stock is owned by corporate insiders.

Key Stories Impacting Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Local case volume grew 2.7% in the first quarter, and Sysco reiterated its fiscal 2027 adjusted EPS growth outlook of 9%–11%. The company also expects its AI transformation efforts to generate $100 million in savings in fiscal 2027. Sysco: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Sysco reported adjusted first-quarter EPS of $1.19, in line with the company’s cited consensus estimate and ahead of the $1.17 estimate reported by Zacks. It also named interim CFO Brandon Sewell as permanent CFO, providing continuity in the finance leadership role. Sysco Q1 Earnings: Sales Miss Estimates, Full-Year EPS Outlook Unchanged
• Negative Sentiment: Revenue of $21.74 billion was below the $22.02 billion analyst estimate, despite increasing 2.8% year over year. The company said a cyclosporiasis outbreak affected first-quarter sales, while costs related to the Jetro acquisition and concerns around sales guidance added pressure. The revenue miss appears to have outweighed the EPS result and reaffirmed full-year earnings outlook. Food distributor Sysco says cyclosporiasis outbreak hit Q1 sales Sysco under pressure on Jetro acquisition costs, FY sales guidance

Sysco Profile

Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.

The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.

Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.

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