Sysco Corporation $SYY is Diamond Hill Capital Management Inc.'s 9th Largest Position

Key Points

• Diamond Hill Capital Management cut its Sysco stake by 10.3% in the fourth quarter, but Sysco still ranked as its 9th largest holding. The firm held 5.69 million shares valued at about $419.4 million.
• Sysco reported mixed quarterly results: EPS of $0.94 slightly missed estimates, and revenue of $20.52 billion came in just below expectations. Still, revenue rose 4.7% year over year.
• The company raised its quarterly dividend to $0.55 per share from $0.54, implying an annualized yield of about 2.9%. Analysts currently rate the stock a Moderate Buy with an average price target of $88.15.

Diamond Hill Capital Management Inc. lessened its stake in Sysco Corporation (NYSE:SYY - Free Report) by 10.3% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 5,691,461 shares of the company's stock after selling 651,878 shares during the quarter. Sysco accounts for 2.1% of Diamond Hill Capital Management Inc.'s investment portfolio, making the stock its 9th largest position. Diamond Hill Capital Management Inc. owned approximately 1.19% of Sysco worth $419,404,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also made changes to their positions in SYY. Intech Investment Management LLC increased its holdings in shares of Sysco by 53.1% in the 1st quarter. Intech Investment Management LLC now owns 22,310 shares of the company's stock valued at $1,674,000 after purchasing an additional 7,742 shares in the last quarter. Schnieders Capital Management LLC. increased its holdings in Sysco by 24.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 10,310 shares of the company's stock valued at $781,000 after acquiring an additional 2,000 shares in the last quarter. NewEdge Advisors LLC increased its holdings in Sysco by 62.4% during the 2nd quarter. NewEdge Advisors LLC now owns 35,447 shares of the company's stock valued at $2,685,000 after acquiring an additional 13,616 shares in the last quarter. Sei Investments Co. raised its position in Sysco by 14.2% during the second quarter. Sei Investments Co. now owns 344,504 shares of the company's stock worth $26,092,000 after acquiring an additional 42,903 shares during the last quarter. Finally, Treasurer of the State of North Carolina raised its position in Sysco by 0.8% during the second quarter. Treasurer of the State of North Carolina now owns 226,648 shares of the company's stock worth $17,166,000 after acquiring an additional 1,710 shares during the last quarter. Hedge funds and other institutional investors own 83.41% of the company's stock.

Sysco Price Performance

Shares of Sysco stock opened at $77.06 on Friday. The business's fifty day moving average price is $76.19 and its 200 day moving average price is $78.03. Sysco Corporation has a twelve month low of $68.19 and a twelve month high of $91.85. The company has a current ratio of 1.33, a quick ratio of 0.80 and a debt-to-equity ratio of 5.58. The stock has a market capitalization of $36.85 billion, a P/E ratio of 21.34, a PEG ratio of 3.08 and a beta of 0.66.

Sysco (NYSE:SYY - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The company reported $0.94 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.01). The firm had revenue of $20.52 billion for the quarter, compared to analyst estimates of $20.56 billion. Sysco had a return on equity of 103.57% and a net margin of 2.08%.The business's revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior 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, research analysts anticipate that Sysco Corporation will post 4.59 earnings per share for the current year.

Sysco Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Thursday, July 2nd will be issued a $0.55 dividend. The ex-dividend date is Thursday, July 2nd. This is a positive change from Sysco's previous quarterly dividend of $0.54. This represents a $2.20 annualized dividend and a yield of 2.9%. Sysco's payout ratio is 59.83%.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Barclays lowered their price target 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. Wall Street Zen lowered Sysco from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. UBS Group lowered their target price on Sysco from $95.00 to $90.00 and set a "buy" rating on the stock in a report on Thursday, April 2nd. Weiss Ratings downgraded Sysco from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 30th. Finally, Piper Sandler cut their price target on Sysco from $83.00 to $77.00 and set a "neutral" rating for the company in a report on Tuesday, April 7th. Nine equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target 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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