Montanova Capital LLC Increases Stock Holdings in Sysco Corporation $SYY

Key Points

• Montanova Capital increased its Sysco position by 21.8% in the second quarter, adding 252,394 shares to own 1.41 million shares valued at approximately $118 million. Institutional investors collectively own 83.41% of Sysco.
• Sysco exceeded quarterly expectations, reporting $1.53 in EPS and $22.12 billion in revenue, with revenue up 4.7% year over year. Analysts have an overall “Moderate Buy” rating and a consensus price target of $89.50.
• Sysco declared a quarterly dividend of $0.55 per share, equivalent to $2.20 annually and a 2.7% yield; shares recently traded at $81.14.

Montanova Capital LLC increased its position in shares of Sysco Corporation (NYSE:SYY - Free Report) by 21.8% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 1,411,550 shares of the company's stock after acquiring an additional 252,394 shares during the period. Sysco makes up about 2.0% of Montanova Capital LLC's holdings, making the stock its 14th biggest position. Montanova Capital LLC owned 0.29% of Sysco worth $117,977,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the company. Nicholas Company Inc. bought a new stake in Sysco during the fourth quarter valued at approximately $2,278,000. United Capital Financial Advisors LLC bought a new stake in shares of Sysco during the 2nd quarter worth $2,633,000. Rakuten Investment Management Inc. bought a new position in Sysco in the second quarter valued at $6,523,000. Norges Bank purchased a new stake in Sysco during the fourth quarter valued at about $542,780,000. Finally, Banque Cantonale Vaudoise boosted its holdings in shares of Sysco by 301.9% in the 1st quarter. Banque Cantonale Vaudoise now owns 16,828 shares of the company's stock worth $1,200,000 after purchasing an additional 12,641 shares in the last quarter. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, EVP Ronald L. Phillips sold 506 shares of Sysco stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $84.09, for a total value of $42,549.54. Following the sale, the executive vice president directly owned 36,313 shares in the company, valued at approximately $3,053,560.17. This trade represents a 1.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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. Insiders sold 14,508 shares of company stock valued at $1,215,250 over the last quarter. 0.56% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on SYY. Citigroup boosted their target price on Sysco from $82.00 to $86.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Wall Street Zen raised shares of Sysco from a "hold" rating to a "buy" rating in a report on Saturday. Weiss Ratings raised shares of Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 19th. Morgan Stanley lifted their price objective on Sysco from $84.00 to $88.00 and gave the stock an "equal weight" rating in a report on Thursday, July 16th. Finally, Melius Research cut Sysco from a "hold" rating to a "sell" rating in a report on Tuesday, July 7th. Nine equities 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 stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $89.50.

Sysco Trading Down 1.0%

NYSE:SYY opened at $81.14 on Tuesday. The company has a fifty day moving average of $83.11 and a 200 day moving average of $80.50. Sysco Corporation has a 52 week low of $68.19 and a 52 week high of $91.85. 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 firm has a market capitalization of $38.87 billion, a P/E ratio of 22.17, a P/E/G ratio of 2.80 and a beta of 0.64.

Sysco (NYSE:SYY - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.02. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The business had revenue of $22.12 billion during the quarter, compared to analysts' expectations of $21.95 billion. During the same quarter in the prior year, the company posted $1.48 EPS. The firm's revenue for the quarter 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. On average, research analysts predict that Sysco Corporation will post 5.12 earnings per share for the current year.

Sysco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 2nd will be paid a $0.55 dividend. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $2.20 annualized dividend and a dividend yield of 2.7%. Sysco's dividend payout ratio (DPR) is presently 60.11%.

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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