Sunriver Management LLC Buys New Stake in Sysco Corporation $SYY

Key Points

• Sunriver Management LLC invested approximately $19.54 million in Sysco Corporation, purchasing 260,434 shares, which now represent about 2.4% of its holdings.
• Sysco Corporation reported a net margin of 2.25% and a return on equity of 109.52% for the latest quarter, with earnings of $1.48 per share, surpassing analyst expectations.
• The company announced a quarterly dividend of $0.54, translating to an annualized dividend yield of 2.7%, with the payout scheduled for October 24th.

Sunriver Management LLC acquired a new stake in shares of Sysco Corporation (NYSE:SYY - Free Report) in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 260,434 shares of the company's stock, valued at approximately $19,543,000. Sysco comprises 2.4% of Sunriver Management LLC's investment portfolio, making the stock its 19th largest holding. Sunriver Management LLC owned approximately 0.05% of Sysco at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Boston Partners raised its stake in Sysco by 24.8% in the 1st quarter. Boston Partners now owns 15,199,828 shares of the company's stock worth $1,139,798,000 after acquiring an additional 3,015,714 shares during the last quarter. Canoe Financial LP raised its stake in Sysco by 29,610.4% in the 1st quarter. Canoe Financial LP now owns 1,431,149 shares of the company's stock worth $107,393,000 after acquiring an additional 1,426,332 shares during the last quarter. Nuveen LLC purchased a new position in Sysco in the 1st quarter worth $85,341,000. Burgundy Asset Management Ltd. grew its position in Sysco by 251.6% during the 4th quarter. Burgundy Asset Management Ltd. now owns 1,452,073 shares of the company's stock worth $111,026,000 after purchasing an additional 1,039,088 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main grew its position in Sysco by 9,792.2% during the 4th quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 980,616 shares of the company's stock worth $74,978,000 after purchasing an additional 970,703 shares during the period. Hedge funds and other institutional investors own 83.41% of the company's stock.

Analyst Upgrades and Downgrades

SYY has been the topic of several analyst reports. UBS Group set a $90.00 price target on Sysco in a research report on Wednesday, July 30th. Bank of America increased their price target on Sysco from $81.00 to $93.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Citigroup initiated coverage on Sysco in a research report on Thursday, May 22nd. They set a "neutral" rating and a $78.00 price target on the stock. Morgan Stanley increased their price target on Sysco from $72.00 to $77.00 and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Finally, BMO Capital Markets cut their price target on Sysco from $82.00 to $77.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 30th. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, Sysco has a consensus rating of "Moderate Buy" and an average target price of $85.69.

Insiders Place Their Bets

In other Sysco news, EVP Greg D. Bertrand sold 40,000 shares of the stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $80.00, for a total value of $3,200,000.00. Following the completion of the transaction, the executive vice president directly owned 56,304 shares of the company's stock, valued at approximately $4,504,320. This trade represents a 41.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Ronald L. Phillips sold 37,606 shares of the stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $81.00, for a total transaction of $3,046,086.00. Following the completion of the sale, the executive vice president owned 30,235 shares in the company, valued at $2,449,035. This represents a 55.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 84,026 shares of company stock valued at $6,766,059. Insiders own 0.54% of the company's stock.

Sysco Trading Down 0.9%

Shares of SYY stock traded down $0.71 during trading on Thursday, hitting $79.59. 1,526,631 shares of the stock traded hands, compared to its average volume of 3,305,983. The firm has a market capitalization of $38.58 billion, a P/E ratio of 21.34, a price-to-earnings-growth ratio of 2.47 and a beta of 0.83. The company has a debt-to-equity ratio of 6.75, a current ratio of 1.21 and a quick ratio of 0.70. The firm's fifty day moving average price is $78.46 and its 200-day moving average price is $74.56. Sysco Corporation has a 52-week low of $67.12 and a 52-week high of $82.64.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.39 by $0.09. The firm had revenue of $21.14 billion for the quarter, compared to analyst estimates of $21.01 billion. Sysco had a net margin of 2.25% and a return on equity of 109.52%. The business's revenue for the quarter was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.39 EPS. Sysco has set its FY 2026 guidance at 4.500-4.600 EPS. As a group, research analysts forecast that Sysco Corporation will post 4.58 earnings per share for the current fiscal year.

Sysco Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 24th. Shareholders of record on Friday, October 3rd will be paid a $0.54 dividend. The ex-dividend date is Friday, October 3rd. This represents a $2.16 annualized dividend and a dividend yield of 2.7%. Sysco's payout ratio is 57.91%.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.