Norges Bank Acquires Shares of 7,365,716 Sysco Corporation $SYY

Key Points

• Norges Bank disclosed a new stake in Sysco, buying 7,365,716 shares worth about $542.8 million and giving it roughly 1.54% ownership of the company.
• Sysco’s latest quarter slightly missed expectations, with EPS of $0.94 versus $0.95 expected and revenue of $20.52 billion versus $20.56 billion expected, though sales still rose 4.7% year over year.
• The company raised its quarterly dividend to $0.55 per share from $0.54, implying an annualized payout of $2.20 and a yield of about 2.9%.

Norges Bank acquired a new stake in shares of Sysco Corporation (NYSE:SYY - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 7,365,716 shares of the company's stock, valued at approximately $542,780,000. Norges Bank owned approximately 1.54% of Sysco as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Intech Investment Management LLC lifted 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 acquiring an additional 7,742 shares in the last quarter. Schnieders Capital Management LLC. lifted its position in shares of Sysco by 24.1% in the second quarter. Schnieders Capital Management LLC. now owns 10,310 shares of the company's stock valued at $781,000 after acquiring an additional 2,000 shares in the last quarter. NewEdge Advisors LLC lifted its position in shares of Sysco by 62.4% in the second quarter. NewEdge Advisors LLC now owns 35,447 shares of the company's stock valued at $2,685,000 after acquiring an additional 13,616 shares in the last quarter. Sei Investments Co. lifted its position in shares of Sysco by 14.2% in the second quarter. Sei Investments Co. now owns 344,504 shares of the company's stock valued at $26,092,000 after acquiring an additional 42,903 shares in the last quarter. Finally, Treasurer of the State of North Carolina lifted its position in shares of Sysco by 0.8% in the second quarter. Treasurer of the State of North Carolina now owns 226,648 shares of the company's stock valued at $17,166,000 after acquiring an additional 1,710 shares in the last quarter. 83.41% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Piper Sandler decreased their price target on shares of Sysco from $83.00 to $77.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 7th. Barclays reduced their price objective on Sysco from $92.00 to $86.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. Wall Street Zen downgraded Sysco from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Wells Fargo & Company lifted their price objective on Sysco from $92.00 to $100.00 and gave the stock an "overweight" rating in a research report on Thursday, February 19th. Finally, Deutsche Bank Aktiengesellschaft downgraded Sysco from a "buy" rating to a "hold" rating and set a $84.00 price objective on the stock. in a research report on Tuesday, April 28th. Nine equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, Sysco currently has an average rating of "Moderate Buy" and an average price target of $88.15.

Sysco Price Performance

SYY stock opened at $75.98 on Monday. The company has a current ratio of 1.33, a quick ratio of 0.80 and a debt-to-equity ratio of 5.58. The company has a market capitalization of $36.33 billion, a PE ratio of 21.05, a P/E/G ratio of 3.10 and a beta of 0.65. Sysco Corporation has a 12-month low of $68.19 and a 12-month high of $91.85. The business's fifty day moving average price is $75.17 and its 200 day moving average price is $78.13.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The company reported $0.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.95 by ($0.01). The firm had revenue of $20.52 billion during the quarter, compared to analysts' expectations of $20.56 billion. Sysco had a net margin of 2.08% and a return on equity of 103.57%. Sysco's quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.96 EPS. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. On average, sell-side analysts anticipate that Sysco Corporation will post 4.59 EPS for the current year.

Sysco Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Thursday, July 2nd will be paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Thursday, July 2nd. This is an increase from Sysco's previous quarterly dividend of $0.54. Sysco's payout ratio is currently 59.83%.

Insiders Place Their Bets

In other Sysco news, Director John M. Hinshaw bought 13,304 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The shares were purchased at an average cost of $75.17 per share, with a total value of $1,000,061.68. Following the purchase, the director directly owned 40,200 shares in the company, valued at approximately $3,021,834. This represents a 49.46% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.56% of the stock is currently owned by insiders.

Sysco Company 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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