Legal & General Group Plc Makes New Investment in Sysco Corporation $SYY

Key Points

• Legal & General Group Plc acquired 2.34 million Sysco shares worth approximately $195.9 million, giving it a 0.49% stake. Institutional investors collectively own 83.41% of Sysco.
• Sysco’s latest quarter beat expectations, with EPS of $1.53 versus $1.51 expected and revenue of $22.12 billion, up 4.7% year over year.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an $89.50 price target. Sysco also declared a quarterly dividend of $0.55 per share, representing a 2.6% yield.

Legal & General Group Plc purchased a new position in shares of Sysco Corporation (NYSE:SYY - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 2,344,038 shares of the company's stock, valued at approximately $195,915,000. Legal & General Group Plc owned approximately 0.49% of Sysco as of its most recent filing with the SEC.

A number of other institutional investors have also made changes to their positions in SYY. Intech Investment Management LLC raised its position in shares of Sysco by 53.1% in the first quarter. Intech Investment Management LLC now owns 22,310 shares of the company's stock valued at $1,674,000 after purchasing an additional 7,742 shares during the period. Schnieders Capital Management LLC. grew its stake in Sysco by 24.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 10,310 shares of the company's stock valued at $781,000 after buying an additional 2,000 shares during the last quarter. NewEdge Advisors LLC raised its holdings in Sysco by 62.4% in the 2nd quarter. NewEdge Advisors LLC now owns 35,447 shares of the company's stock worth $2,685,000 after acquiring an additional 13,616 shares during the period. Sei Investments Co. raised its holdings in Sysco by 14.2% in the 2nd quarter. Sei Investments Co. now owns 344,504 shares of the company's stock worth $26,092,000 after acquiring an additional 42,903 shares during the period. Finally, Treasurer of the State of North Carolina lifted its position in Sysco by 0.8% during the 2nd quarter. Treasurer of the State of North Carolina now owns 226,648 shares of the company's stock worth $17,166,000 after acquiring an additional 1,710 shares during the last quarter. 83.41% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of analysts have issued reports on SYY shares. Barclays lowered their target price on Sysco from $92.00 to $86.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Piper Sandler increased their price objective on Sysco from $77.00 to $84.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. Melius Research downgraded shares of Sysco from a "hold" rating to a "sell" rating in a research note on Tuesday, July 7th. Weiss Ratings upgraded shares of Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 19th. Finally, Wall Street Zen downgraded shares of Sysco from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Sysco currently has a consensus rating of "Moderate Buy" and a consensus price target of $89.50.

Sysco Stock Down 0.2%

NYSE SYY opened at $83.28 on Thursday. Sysco Corporation has a 1-year low of $68.19 and a 1-year high of $91.85. The company has a market capitalization of $39.90 billion, a price-to-earnings ratio of 22.75, a PEG ratio of 2.85 and a beta of 0.64. The stock's 50 day moving average is $82.91 and its two-hundred day moving average is $80.61. The company has a current ratio of 1.28, a quick ratio of 0.77 and a debt-to-equity ratio of 4.62.

Sysco (NYSE:SYY - Get Free Report) last posted its 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. The business had revenue of $22.12 billion during the quarter, compared to the consensus estimate of $21.95 billion. Sysco had a return on equity of 95.05% and a net margin of 2.08%.Sysco's revenue was up 4.7% on a year-over-year basis. During the same quarter last year, the company earned $1.48 EPS. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. Equities analysts forecast that Sysco Corporation will post 5.12 earnings per share for the current fiscal year.

Sysco Dividend Announcement

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

Insider Buying and Selling at Sysco

In other news, EVP Ronald L. Phillips sold 506 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $84.09, for a total value of $42,549.54. Following the sale, the executive vice president owned 36,313 shares of the company's stock, valued at approximately $3,053,560.17. This represents a 1.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 14,508 shares of company stock valued at $1,215,250. 0.56% of the stock is currently owned by corporate insiders.

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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