Korea Investment CORP Makes New Investment in Sysco Corporation $SYY

Key Points

• Korea Investment Corp. purchased 345,428 Sysco shares worth approximately $28.9 million in the second quarter, giving it a 0.07% stake. Institutional investors collectively own 83.41% of the company.
• Sysco exceeded quarterly expectations, reporting $1.53 in EPS versus the $1.51 consensus and $22.12 billion in revenue, up 4.7% year over year. Analysts have a “Moderate Buy” consensus rating with an average price target of $89.50.
• Sysco declared a quarterly dividend of $0.55 per share, equivalent to $2.20 annually and a 2.6% yield; the dividend is payable October 23 to shareholders of record October 2.

Korea Investment CORP bought a new stake in Sysco Corporation (NYSE:SYY - Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm bought 345,428 shares of the company's stock, valued at approximately $28,871,000. Korea Investment CORP owned approximately 0.07% of Sysco as of its most recent filing with the SEC.

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

Insider Activity

In other news, EVP Ronald L. Phillips sold 6,285 shares of the firm's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $83.94, for a total transaction of $527,562.90. Following the sale, the executive vice president owned 39,970 shares in the company, valued at approximately $3,355,081.80. This trade represents a 13.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through 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. Also, Director John M. Hinshaw acquired 13,304 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was purchased at an average price of $75.17 per share, with a total value of $1,000,061.68. Following the completion of the acquisition, the director directly owned 40,200 shares in the company, valued at approximately $3,021,834. This represents a 49.46% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.56% of the stock is owned by insiders.

Sysco Trading Up 1.2%

Shares of SYY opened at $84.04 on Friday. The business has a 50-day moving average of $82.65 and a 200 day moving average of $80.64. Sysco Corporation has a fifty-two week low of $68.19 and a fifty-two week high of $91.85. 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 firm has a market cap of $40.23 billion, a P/E ratio of 22.96, a price-to-earnings-growth ratio of 2.88 and a beta of 0.64.

Sysco (NYSE:SYY - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share (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 firm had revenue of $22.12 billion for the quarter, compared to the consensus estimate of $21.95 billion. During the same quarter in the prior year, the business posted $1.48 earnings per share. The business's quarterly revenue was up 4.7% on a year-over-year basis. 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, research analysts forecast that Sysco Corporation will post 5.12 EPS for the current year.

Sysco Announces Dividend

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

Key Stories Impacting Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Sysco appointed Jason Murray, a former Amazon supply-chain technology executive, and Tom Ondrof, a former Aramark CFO, to its board effective September 1. Their expertise in artificial intelligence, logistics, foodservice, finance, and mergers could strengthen execution and governance. Sysco Announces Strategic Board Appointments and AI Transformation Initiatives
• Positive Sentiment: The company reiterated fiscal 2027 targets of 6%–7% revenue growth and 9%–11% adjusted EPS growth, including a planned $100 million AI-enabled cost-savings program. Sysco is also upgrading its technology committee to oversee the broader AI transformation. Sysco Gains After Highlighting Board Changes and AI Initiatives
• Positive Sentiment: D.E. Shaw reportedly owns more than $1 billion of Sysco stock and supports the AI strategy and pending Jetro Restaurant Depot acquisition. Its expected participation in the transaction’s capital raise signals institutional confidence in Sysco’s long-term plans. D.E. Shaw Owns More Than $1 Billion Stake in Sysco
• Positive Sentiment: Sysco declared a quarterly dividend of $0.55 per share, payable October 23 to shareholders of record October 2. The maintained payout provides income support and indicates continued confidence in cash generation. Sysco Declares Quarterly Dividend Payment
• Neutral Sentiment: Persistent food inflation and uncertainty around tariffs remain industry-wide considerations. Higher food costs can lift Sysco’s reported sales, but may pressure restaurant demand, customer margins, and Sysco’s profitability if costs cannot be passed through. Trump's 90-Day Inflation Band-Aid
• Negative Sentiment: The Jetro Restaurant Depot acquisition still carries regulatory, financing, integration, and execution risks. Any delays, dilution, or failure to deliver expected synergies could weigh on SYY despite the positive strategic narrative.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on SYY. Weiss Ratings raised Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday. Melius Research cut Sysco from a "hold" rating to a "sell" rating in a research note on Tuesday, July 7th. Barclays dropped their price target on Sysco from $92.00 to $86.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. Piper Sandler increased their price target on Sysco from $77.00 to $84.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Finally, Citigroup raised their price objective on shares of Sysco from $82.00 to $86.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Nine equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $89.50.

Sysco Profile

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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