Saudi Central Bank Increases Stock Position in Sysco Corporation $SYY

Key Points

• Saudi Central Bank increased its Sysco stake by 89.4% in the second quarter, bringing its holdings to 33,473 shares valued at approximately $2.8 million. Institutional investors collectively own 83.41% of Sysco’s outstanding stock.
• Sysco exceeded quarterly expectations, reporting $1.53 in adjusted EPS versus a $1.51 consensus estimate and revenue of $22.12 billion, up 4.7% year over year.
• Sysco declared a quarterly dividend of $0.55 per share, equivalent to a 2.7% annualized yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $89.50.

Saudi Central Bank increased its holdings in Sysco Corporation (NYSE:SYY - Free Report) by 89.4% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 33,473 shares of the company's stock after buying an additional 15,798 shares during the period. Saudi Central Bank's holdings in Sysco were worth $2,798,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Sysco during the second quarter worth $3,596,356,000. Norges Bank purchased a new stake in Sysco in the 4th quarter worth approximately $542,780,000. Bank of America Corp DE purchased a new stake in Sysco in the 2nd quarter worth approximately $482,589,000. Wellington Management Group LLP boosted its holdings in Sysco by 3,977.1% in the 3rd quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company's stock valued at $387,935,000 after purchasing an additional 4,595,819 shares during the period. Finally, Primecap Management Co. CA purchased a new position in shares of Sysco during the 2nd quarter valued at $313,503,000. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

Sysco Stock Performance

Shares of SYY stock opened at $80.10 on Tuesday. The company has a market capitalization of $38.38 billion, a P/E ratio of 21.89, a PEG ratio of 2.73 and a beta of 0.63. Sysco Corporation has a fifty-two week low of $68.19 and a fifty-two week high of $91.85. 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 50 day moving average price of $83.07 and a two-hundred day moving average price of $80.19.

Sysco (NYSE:SYY - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $22.12 billion for the quarter, compared to analysts' expectations of $21.95 billion. During the same quarter last year, the business earned $1.48 earnings per share. The business's 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. Analysts expect that Sysco Corporation will post 5.12 earnings per share for the current year.

Sysco Announces Dividend

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 issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Friday, October 2nd. Sysco's dividend payout ratio is currently 60.11%.

Analyst Ratings Changes

A number of equities analysts have weighed in on SYY shares. UBS Group upped their target price on Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Weiss Ratings upgraded shares of Sysco from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, August 19th. Citigroup raised their target price on shares of Sysco from $82.00 to $86.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. Morgan Stanley lifted their target price on shares of Sysco from $84.00 to $88.00 and gave the company an "equal weight" rating in a research report on Thursday, July 16th. Finally, Wall Street Zen cut shares of Sysco from a "buy" rating to a "hold" rating in a research report on Sunday. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $89.50.

Insider Activity

In related news, EVP Ronald Phillips sold 506 shares of the business's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $84.09, for a total transaction of $42,549.54. Following the transaction, the executive vice president owned 36,313 shares in the company, valued at $3,053,560.17. The trade was a 1.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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.

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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