Portland Investment Counsel Inc. Makes New $1.01 Million Investment in Sysco Corporation $SYY

Key Points

• Portland Investment Counsel acquired 12,125 Sysco shares worth approximately $1.01 million in the second quarter. Institutional investors collectively own 83.41% of the company.
• Sysco reported quarterly revenue of $22.12 billion, up 4.7% year over year, and adjusted EPS of $1.53, topping analyst expectations. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $89.50.
• Sysco reiterated fiscal 2027 growth targets and plans for a $100 million AI-enabled cost-savings program, while maintaining its $0.55 quarterly dividend. The planned Jetro Restaurant Depot acquisition remains subject to financing, regulatory, integration, and execution risks.

Portland Investment Counsel Inc. acquired a new position in shares of Sysco Corporation (NYSE:SYY - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 12,125 shares of the company's stock, valued at approximately $1,013,000.

Other large investors also recently made changes to their positions in the company. Lloyd Advisory Services LLC. bought a new stake in Sysco during the fourth quarter worth $25,000. Motiv8 Investments LLC acquired a new stake in Sysco in the fourth quarter valued at $25,000. N.E.W. Advisory Services LLC bought a new position in shares of Sysco in the 2nd quarter valued at about $29,000. Sunbelt Securities Inc. increased its stake in shares of Sysco by 87.6% during the 1st quarter. Sunbelt Securities Inc. now owns 364 shares of the company's stock worth $26,000 after purchasing an additional 170 shares during the last quarter. Finally, Bard Associates Inc. acquired a new position in shares of Sysco during the 4th quarter worth about $27,000. Institutional investors and hedge funds own 83.41% of the company's stock.

Key Sysco News

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 Ratings Changes

A number of equities research analysts have recently issued reports on SYY shares. Weiss Ratings raised shares of Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday. UBS Group boosted their price target on Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Barclays dropped their price objective on Sysco from $92.00 to $86.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft downgraded Sysco from a "buy" rating to a "hold" rating and set a $84.00 target price for the company. in a research note on Tuesday, April 28th. Finally, Wall Street Zen lowered Sysco from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $89.50.

Insider Activity at Sysco

In related news, EVP Ronald L. Phillips sold 6,285 shares of Sysco stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $83.94, for a total transaction of $527,562.90. Following the completion of the sale, the executive vice president directly owned 39,970 shares of the company's stock, valued at approximately $3,355,081.80. This trade represents a 13.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible 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. Also, Director John M. Hinshaw purchased 13,304 shares of Sysco stock in a transaction that occurred on 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 purchase, the director directly owned 40,200 shares in the company, valued at $3,021,834. This trade represents a 49.46% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.56% of the stock is currently owned by corporate insiders.

Sysco Stock Performance

NYSE SYY opened at $84.04 on Monday. The firm has a 50-day moving average of $82.65 and a 200-day moving average of $80.63. 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 stock has a market cap of $40.23 billion, a PE ratio of 22.96, a P/E/G ratio of 2.87 and a beta of 0.64. Sysco Corporation has a 52-week low of $68.19 and a 52-week high of $91.85.

Sysco (NYSE:SYY - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $1.53 EPS for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $21.95 billion. During the same quarter in the prior year, the business earned $1.48 EPS. Sysco'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. On average, sell-side analysts anticipate that Sysco Corporation will post 5.12 EPS for the current year.

Sysco Dividend Announcement

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