Kinloch Capital LLC Purchases Shares of 51,344 Sysco Corporation $SYY

Key Points

• Kinloch Capital initiated a position in Sysco by purchasing 51,344 shares valued at approximately $4.3 million. Institutional investors collectively own 83.41% of the company, with several major funds also adding or establishing stakes.
• Sysco exceeded quarterly expectations, reporting adjusted earnings of $1.53 per share and revenue of $22.12 billion, up 4.7% year over year. The company provided fiscal 2027 earnings guidance of $5.025 to $5.117 per share.
• Sysco announced a quarterly dividend of $0.55 per share, or $2.20 annualized, representing a 2.6% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $89.50, compared with shares trading near $83.86.

Kinloch Capital LLC acquired a new position in shares of Sysco Corporation (NYSE:SYY - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 51,344 shares of the company's stock, valued at approximately $4,291,000.

A number of other hedge funds have also made changes to their positions in SYY. BlackRock Inc. purchased a new stake in Sysco during the 2nd quarter worth $3,596,356,000. Norges Bank purchased a new position in Sysco in the fourth quarter valued at about $542,780,000. Wellington Management Group LLP lifted its stake in shares of Sysco by 3,977.1% during the third quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company's stock worth $387,935,000 after purchasing an additional 4,595,819 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Sysco during the second quarter worth about $273,323,000. Finally, Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in shares of Sysco in the second quarter worth about $203,861,000. Hedge funds and other institutional investors own 83.41% of the company's stock.

Insider Activity at Sysco

In other news, EVP Ronald L. Phillips sold 6,285 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $83.94, for a total transaction of $527,562.90. Following the completion of the transaction, the executive vice president directly owned 39,970 shares in the company, valued at approximately $3,355,081.80. This represents a 13.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 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. Company insiders own 0.56% of the company's stock.

Sysco Stock Down 0.3%

Shares of NYSE SYY opened at $83.86 on Tuesday. Sysco Corporation has a 1 year low of $68.19 and a 1 year high of $91.85. The firm has a market cap of $40.15 billion, a price-to-earnings ratio of 22.91, a PEG ratio of 2.87 and a beta of 0.64. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28. The stock's 50-day simple moving average is $82.74 and its 200-day simple moving average is $80.62.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, topping the consensus estimate of $1.51 by $0.02. Sysco had a return on equity of 95.05% and a net margin of 2.08%.The business had revenue of $22.12 billion for the quarter, compared to analysts' expectations of $21.95 billion. During the same quarter in the previous year, the firm posted $1.48 earnings per share. The company's revenue was up 4.7% compared to the same quarter last year. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. As a group, equities analysts anticipate that Sysco Corporation will post 5.12 earnings per share for the current fiscal year.

Sysco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 2nd will be given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, October 2nd. Sysco's dividend payout ratio is presently 60.11%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on SYY. Barclays lowered their target price on Sysco from $92.00 to $86.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. Melius Research cut Sysco from a "hold" rating to a "sell" rating in a report on Tuesday, July 7th. Citigroup increased their price objective on shares of Sysco from $82.00 to $86.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. UBS Group lifted their price objective on shares of Sysco from $90.00 to $95.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Finally, Morgan Stanley boosted their target price on shares of Sysco from $84.00 to $88.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 16th. Nine research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Sysco presently has a consensus rating of "Moderate Buy" and an average price target of $89.50.

About Sysco

Sysco Corporation NYSE: SYY is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.

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