Sysco Corporation $SYY Shares Purchased by Pacer Advisors Inc.

Key Points

• Pacer Advisors increased its Sysco stake by 48.6% in the fourth quarter, while several other large institutional investors also boosted positions, underscoring continued hedge fund interest in the stock.
• Analysts remain generally constructive on Sysco, with the stock carrying a Moderate Buy consensus and an average price target of $88.15, even as some firms trimmed their targets.
• Sysco reported slightly weaker-than-expected quarterly results and raised its dividend to $0.55 per share quarterly, bringing the annualized yield to about 2.8%.

Pacer Advisors Inc. raised its stake in Sysco Corporation (NYSE:SYY - Free Report) by 48.6% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 60,004 shares of the company's stock after purchasing an additional 19,617 shares during the quarter. Pacer Advisors Inc.'s holdings in Sysco were worth $4,422,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently modified their holdings of the stock. Norges Bank purchased a new stake in shares of Sysco during the 4th quarter valued at about $542,780,000. 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 worth $387,935,000 after acquiring an additional 4,595,819 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Sysco by 45.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 5,651,682 shares of the company's stock worth $416,472,000 after acquiring an additional 1,754,306 shares during the period. Marshall Wace LLP grew its position in Sysco by 102.6% in the third quarter. Marshall Wace LLP now owns 2,359,471 shares of the company's stock valued at $194,279,000 after acquiring an additional 1,194,815 shares in the last quarter. Finally, Suvretta Capital Management LLC acquired a new stake in Sysco in the fourth quarter valued at approximately $79,864,000. Hedge funds and other institutional investors own 83.41% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have recently commented on SYY shares. Piper Sandler reduced their target price on shares of Sysco from $83.00 to $77.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 7th. Barclays lowered their price target on shares of Sysco from $92.00 to $86.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Guggenheim dropped their price target on shares of Sysco from $95.00 to $90.00 and set a "buy" rating on the stock in a research note on Thursday, April 2nd. Wall Street Zen lowered shares of Sysco from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, Citigroup upped their price objective on shares of Sysco from $78.00 to $80.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Nine equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Sysco currently has an average rating of "Moderate Buy" and an average price target of $88.15.

Insiders Place Their Bets

In related news, Director John M. Hinshaw bought 13,304 shares of the company's stock in a transaction dated Tuesday, May 26th. The stock was bought at an average price of $75.17 per share, with a total value of $1,000,061.68. Following the transaction, the director owned 40,200 shares of the company's stock, valued at approximately $3,021,834. This trade represents a 49.46% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. 0.56% of the stock is currently owned by corporate insiders.

Sysco Stock Performance

Shares of SYY opened at $78.06 on Tuesday. The firm has a market cap of $37.33 billion, a price-to-earnings ratio of 21.62, a PEG ratio of 3.21 and a beta of 0.65. The company has a quick ratio of 0.80, a current ratio of 1.33 and a debt-to-equity ratio of 5.58. The business's 50 day moving average is $75.43 and its two-hundred day moving average is $78.34. Sysco Corporation has a 52-week low of $68.19 and a 52-week high of $91.85.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The company reported $0.94 earnings per share for the quarter, missing analysts' consensus estimates of $0.95 by ($0.01). The company 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 firm's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.96 EPS. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. Analysts forecast that Sysco Corporation will post 4.59 EPS for the current fiscal year.

Sysco Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Thursday, July 2nd will be issued a dividend of $0.55 per share. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $2.20 annualized dividend and a yield of 2.8%. This is an increase from Sysco's previous quarterly dividend of $0.54. Sysco's dividend payout ratio (DPR) is 59.83%.

About Sysco

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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