Parnassus Investments LLC Raises Stock Position in Sysco Corporation $SYY

Key Points

• Parnassus Investments increased its stake in Sysco by 1.0% in the fourth quarter, bringing its holdings to 1.61 million shares worth about $118.7 million.
• Sysco reported mixed quarterly results, with EPS of $0.94 narrowly missing estimates and revenue of $20.52 billion slightly below expectations, though sales still rose 4.7% year over year.
• The company raised its quarterly dividend to $0.55 per share, while insider director John M. Hinshaw also bought shares; analysts currently rate the stock a Moderate Buy with an average target price of $88.15.

Parnassus Investments LLC lifted its position in Sysco Corporation (NYSE:SYY - Free Report) by 1.0% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 1,611,005 shares of the company's stock after buying an additional 15,539 shares during the period. Parnassus Investments LLC owned approximately 0.34% of Sysco worth $118,715,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of SYY. Norges Bank purchased a new position in shares of Sysco in the 4th quarter worth approximately $542,780,000. Wellington Management Group LLP grew its position in Sysco by 3,977.1% during the 3rd 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 during the last quarter. Goldman Sachs Group Inc. grew its position in Sysco by 45.0% during the 4th quarter. Goldman Sachs Group Inc. now owns 5,651,682 shares of the company's stock worth $416,472,000 after purchasing an additional 1,754,306 shares during the last quarter. Mondrian Investment Partners LTD purchased a new stake in Sysco during the 3rd quarter worth approximately $142,237,000. Finally, Marshall Wace LLP grew its position in Sysco by 102.6% during the 3rd quarter. Marshall Wace LLP now owns 2,359,471 shares of the company's stock worth $194,279,000 after purchasing an additional 1,194,815 shares during the last quarter. Hedge funds and other institutional investors own 83.41% of the company's stock.

Sysco Stock Up 1.4%

SYY stock opened at $79.67 on Friday. The firm's fifty day simple moving average is $74.59 and its 200-day simple moving average is $78.17. The company has a market capitalization of $38.10 billion, a P/E ratio of 22.07, a price-to-earnings-growth ratio of 3.21 and a beta of 0.65. The company has a debt-to-equity ratio of 5.58, a current ratio of 1.33 and a quick ratio of 0.80. Sysco Corporation has a 12 month low of $68.19 and a 12 month high of $91.85.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported $0.94 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.01). The business 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%. The firm's revenue was up 4.7% on a year-over-year basis. During the same period last year, the company earned $0.96 earnings per share. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. As a group, equities research analysts forecast that Sysco Corporation will post 4.59 earnings per share for the current year.

Sysco Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Thursday, July 2nd will be issued a $0.55 dividend. This is an increase from Sysco's previous quarterly dividend of $0.54. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $2.20 annualized dividend and a dividend yield of 2.8%. Sysco's payout ratio is currently 59.83%.

Insider Activity at Sysco

In other Sysco news, Director John M. Hinshaw acquired 13,304 shares of the company's stock in a transaction dated Tuesday, May 26th. The shares were acquired at an average cost of $75.17 per share, with a total value of $1,000,061.68. Following the acquisition, the director directly owned 40,200 shares of the company's stock, valued at approximately $3,021,834. The trade was a 49.46% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. 0.56% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on SYY. Guggenheim dropped their target price on shares of Sysco from $95.00 to $90.00 and set a "buy" rating on the stock in a research report on Thursday, April 2nd. Weiss Ratings downgraded shares of Sysco from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 30th. Barclays dropped their target price on shares of Sysco from $92.00 to $86.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. Piper Sandler dropped their target price on shares of Sysco from $83.00 to $77.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 7th. Finally, Deutsche Bank Aktiengesellschaft downgraded shares of Sysco from a "buy" rating to a "hold" rating and set a $84.00 target price on the stock. in a research report on Tuesday, April 28th. Nine analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $88.15.

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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