Sysco Corporation $SYY Shares Bought by Vanguard Group Inc.

Key Points

• Vanguard Group increased its stake in Sysco by 1.3% in Q4, holding 62,305,343 shares — about a 13.01% ownership worth approximately $4.59 billion.
• Analyst views are mixed: several firms cut or trimmed targets (Weiss to hold; Citi cut target to $72) while others raised targets (Jefferies $95; Wells Fargo $100), with a consensus rating of “Moderate Buy” and a consensus target of $87.85.
• Sysco raised its quarterly dividend to $0.55 (from $0.54), implying a $2.20 annualized payout and a 2.9% yield; the ex-dividend date is July 2 and the payment date is July 24.

Vanguard Group Inc. grew its position in shares of Sysco Corporation (NYSE:SYY - Free Report) by 1.3% during the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 62,305,343 shares of the company's stock after purchasing an additional 814,270 shares during the period. Vanguard Group Inc. owned approximately 13.01% of Sysco worth $4,591,281,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the stock. MassMutual Private Wealth & Trust FSB raised its stake in shares of Sysco by 0.3% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 40,852 shares of the company's stock valued at $3,364,000 after acquiring an additional 130 shares in the last quarter. Silver Oak Securities Incorporated raised its stake in shares of Sysco by 4.0% in the third quarter. Silver Oak Securities Incorporated now owns 3,493 shares of the company's stock valued at $288,000 after acquiring an additional 134 shares in the last quarter. Harbor Capital Advisors Inc. raised its stake in shares of Sysco by 75.0% in the third quarter. Harbor Capital Advisors Inc. now owns 315 shares of the company's stock valued at $26,000 after acquiring an additional 135 shares in the last quarter. Global Retirement Partners LLC raised its stake in shares of Sysco by 4.6% in the third quarter. Global Retirement Partners LLC now owns 3,227 shares of the company's stock valued at $266,000 after acquiring an additional 141 shares in the last quarter. Finally, Octavia Wealth Advisors LLC raised its stake in shares of Sysco by 4.6% in the fourth quarter. Octavia Wealth Advisors LLC now owns 3,231 shares of the company's stock valued at $237,000 after acquiring an additional 141 shares in the last quarter. 83.41% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Weiss Ratings cut Sysco from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, March 30th. Citigroup cut their price target on Sysco from $88.00 to $72.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 31st. Wall Street Zen upgraded Sysco from a "hold" rating to a "buy" rating in a research note on Saturday, April 11th. Jefferies Financial Group raised their price target on Sysco from $90.00 to $95.00 and gave the company a "buy" rating in a research note on Wednesday, January 28th. Finally, Wells Fargo & Company raised their price target on Sysco from $92.00 to $100.00 and gave the company an "overweight" rating in a research note on Thursday, February 19th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Sysco has an average rating of "Moderate Buy" and a consensus target price of $87.85.

Sysco Stock Down 1.7%

SYY opened at $75.26 on Tuesday. The business's 50-day simple moving average is $80.88 and its 200-day simple moving average is $78.51. The company has a debt-to-equity ratio of 5.45, a quick ratio of 0.75 and a current ratio of 1.30. Sysco Corporation has a one year low of $68.00 and a one year high of $91.85. The stock has a market capitalization of $36.05 billion, a P/E ratio of 20.23, a price-to-earnings-growth ratio of 2.76 and a beta of 0.69.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings results on Tuesday, January 27th. The company reported $0.99 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.98 by $0.01. Sysco had a return on equity of 109.21% and a net margin of 2.17%.The firm had revenue of $20.76 billion for the quarter, compared to analyst estimates of $20.80 billion. During the same quarter last year, the company posted $0.93 earnings per share. The business's revenue was up 3.0% on a year-over-year basis. Analysts anticipate that Sysco Corporation will post 4.59 EPS for the current year.

Sysco Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Thursday, July 2nd will be issued a $0.55 dividend. This is a boost from Sysco's previous quarterly dividend of $0.54. The ex-dividend date is Thursday, July 2nd. This represents a $2.20 annualized dividend and a yield of 2.9%. Sysco's payout ratio is presently 59.14%.

Insiders Place Their Bets

In other Sysco news, Director Sheila Talton sold 2,801 shares of the business's stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $82.99, for a total value of $232,454.99. Following the completion of the transaction, the director directly owned 12,868 shares in the company, valued at approximately $1,067,915.32. The trade was a 17.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.56% of the company's stock.

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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