Sysco Corporation $SYY Holdings Raised by Factory Mutual Insurance Co.

Key Points

• Factory Mutual Insurance Co. raised its Sysco stake by 11.8% in the third quarter, adding 66,250 shares to hold 628,385 shares valued at about $49 million.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $90.42; nine analysts rated the stock Buy, six Hold, and one Sell.
• Sysco reported quarterly EPS of $1.19, in line with estimates, while revenue of $21.74 billion fell short of expectations despite rising 2.8% year over year.

Factory Mutual Insurance Co. increased its stake in shares of Sysco Corporation (NYSE:SYY - Free Report) by 11.8% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 628,385 shares of the company's stock after acquiring an additional 66,250 shares during the quarter. Factory Mutual Insurance Co. owned approximately 0.13% of Sysco worth $48,989,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also bought and sold shares of the company. N.E.W. Advisory Services LLC bought a new stake in Sysco in the second quarter valued at approximately $29,000. Salomon & Ludwin LLC boosted its stake in shares of Sysco by 718.6% during the third quarter. Salomon & Ludwin LLC now owns 352 shares of the company's stock valued at $27,000 after purchasing an additional 309 shares during the period. Sunbelt Securities Inc. grew its holdings in shares of Sysco by 87.6% in the first 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. Markowski Investments purchased a new position in shares of Sysco in the second quarter worth $31,000. Finally, Parvin Asset Management LLC purchased a new position in shares of Sysco in the second quarter worth $32,000. 83.41% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on SYY. JPMorgan Chase & Co. lowered their price target on shares of Sysco from $100.00 to $95.00 and set an "overweight" rating for the company in a report on Tuesday, September 29th. Guggenheim reissued a "buy" rating and set a $90.00 price target on shares of Sysco in a research report on Wednesday, September 16th. Weiss Ratings raised shares of Sysco from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 15th. Melius Research cut shares of Sysco from a "hold" rating to a "sell" rating in a research report on Tuesday, July 7th. Finally, UBS Group boosted their price objective on shares of Sysco from $90.00 to $95.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Nine research 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. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $90.42.

Sysco Stock Down 9.3%

SYY opened at $74.12 on Wednesday. The stock has a market capitalization of $36.46 billion, a price-to-earnings ratio of 20.25, a PEG ratio of 2.30 and a beta of 0.66. The firm has a 50 day moving average price of $80.30 and a 200-day moving average price of $80.52. Sysco Corporation has a twelve month low of $68.19 and a twelve month high of $91.85. The company has a quick ratio of 0.77, a current ratio of 1.28 and a debt-to-equity ratio of 4.62.

Sysco (NYSE:SYY - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.19. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The company had revenue of $21.74 billion for the quarter, compared to analysts' expectations of $22.02 billion. During the same quarter last year, the company posted $1.15 earnings per share. The firm's quarterly revenue was up 2.8% on a year-over-year basis. Equities research analysts forecast that Sysco Corporation will post 5.09 earnings per share for the current year.

Sysco Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend was Friday, October 2nd. Sysco's dividend payout ratio is presently 60.11%.

Key Sysco News

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Local case volume grew 2.7% in the first quarter, and Sysco reiterated its fiscal 2027 adjusted EPS growth outlook of 9%–11%. The company also expects its AI transformation efforts to generate $100 million in savings in fiscal 2027. Sysco: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Sysco reported adjusted first-quarter EPS of $1.19, in line with the company’s cited consensus estimate and ahead of the $1.17 estimate reported by Zacks. It also named interim CFO Brandon Sewell as permanent CFO, providing continuity in the finance leadership role. Sysco Q1 Earnings: Sales Miss Estimates, Full-Year EPS Outlook Unchanged
• Negative Sentiment: Revenue of $21.74 billion was below the $22.02 billion analyst estimate, despite increasing 2.8% year over year. The company said a cyclosporiasis outbreak affected first-quarter sales, while costs related to the Jetro acquisition and concerns around sales guidance added pressure. The revenue miss appears to have outweighed the EPS result and reaffirmed full-year earnings outlook. Food distributor Sysco says cyclosporiasis outbreak hit Q1 sales Sysco under pressure on Jetro acquisition costs, FY sales guidance

Insider Activity

In other news, EVP Ronald Phillips sold 7,350 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $83.61, for a total value of $614,533.50. Following the transaction, the executive vice president directly owned 38,650 shares in the company, valued at $3,231,526.50. This trade represents a 15.98% decrease in their position. The transaction was disclosed in a filing with the SEC, 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. In the last quarter, insiders sold 15,525 shares of company stock valued at $1,299,736. Company insiders own 0.55% of the company's stock.

Sysco Company Profile

Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.

The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.

Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.

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