Sysco Corporation $SYY Shares Sold by Capital Research Global Investors

Key Points

• Capital Research Global Investors trimmed its Sysco stake by 0.6% in the fourth quarter, though it still held 18.25 million shares worth about $1.34 billion and owned 3.81% of the company.
• Sysco reported quarterly EPS of $0.94, slightly below expectations, while revenue of $20.52 billion also came in just under estimates. The company said revenue rose 4.7% year over year.
• Sysco raised its quarterly dividend to $0.55 per share from $0.54, implying an annualized payout of $2.20 and a yield of about 2.9%.

Capital Research Global Investors reduced its position in shares of Sysco Corporation (NYSE:SYY - Free Report) by 0.6% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 18,247,457 shares of the company's stock after selling 113,250 shares during the quarter. Capital Research Global Investors owned 3.81% of Sysco worth $1,344,655,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in the company. Montag A & Associates Inc. raised its stake in Sysco by 1.4% during the 4th quarter. Montag A & Associates Inc. now owns 8,743 shares of the company's stock valued at $644,000 after purchasing an additional 123 shares during the period. United Community Bank raised its stake in Sysco by 11.4% during the 4th quarter. United Community Bank now owns 1,224 shares of the company's stock valued at $90,000 after purchasing an additional 125 shares during the period. Octavia Wealth Advisors LLC raised its stake in Sysco by 4.6% during the 4th quarter. Octavia Wealth Advisors LLC now owns 3,231 shares of the company's stock valued at $237,000 after purchasing an additional 141 shares during the period. Diversify Wealth Management LLC raised its stake in Sysco by 1.6% during the 4th quarter. Diversify Wealth Management LLC now owns 9,173 shares of the company's stock valued at $698,000 after purchasing an additional 143 shares during the period. Finally, Cary Street Partners Investment Advisory LLC increased its stake in shares of Sysco by 11.1% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 1,469 shares of the company's stock worth $108,000 after acquiring an additional 147 shares during the last quarter. 83.41% of the stock is owned by institutional investors and hedge funds.

Sysco Stock Up 2.7%

SYY stock opened at $76.36 on Friday. The company has a debt-to-equity ratio of 5.58, a current ratio of 1.33 and a quick ratio of 0.80. Sysco Corporation has a 52-week low of $68.19 and a 52-week high of $91.85. The company has a 50-day moving average of $74.45 and a two-hundred day moving average of $78.09. The stock has a market capitalization of $36.51 billion, a price-to-earnings ratio of 21.15, a price-to-earnings-growth ratio of 3.12 and a beta of 0.65.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The company reported $0.94 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.95 by ($0.01). Sysco had a net margin of 2.08% and a return on equity of 103.57%. The firm had revenue of $20.52 billion for the quarter, compared to the consensus estimate of $20.56 billion. During the same quarter last year, the company earned $0.96 earnings per share. The firm's revenue was up 4.7% on a year-over-year basis. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. As a group, equities research analysts anticipate that Sysco Corporation will post 4.59 EPS for the current year.

Sysco Increases Dividend

The company 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 dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 2.9%. This is a positive change from Sysco's previous quarterly dividend of $0.54. The ex-dividend date is Thursday, July 2nd. Sysco's dividend payout ratio is currently 59.83%.

Insider Transactions at Sysco

In other news, Director John M. Hinshaw purchased 13,304 shares of the firm's stock in a transaction on Tuesday, May 26th. The stock was bought at an average cost of $75.17 per share, for a total transaction of $1,000,061.68. Following the completion of the acquisition, the director directly owned 40,200 shares of the company's stock, valued at approximately $3,021,834. The trade was a 49.46% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.56% of the stock is owned by company insiders.

Analysts Set New Price Targets

SYY has been the topic of a number of research reports. Barclays dropped their price target on shares of Sysco from $92.00 to $86.00 and set an "overweight" rating on the stock in a research note 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. Deutsche Bank Aktiengesellschaft downgraded shares of Sysco from a "buy" rating to a "hold" rating and set a $84.00 price target on the stock. in a research note on Tuesday, April 28th. UBS Group 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. Finally, Sanford C. Bernstein dropped their price target on shares of Sysco from $90.00 to $85.00 and set a "market perform" rating on the stock in a research note on Wednesday, April 29th. Nine 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, the stock presently has an average rating of "Moderate Buy" and an average target price of $88.15.

Sysco Company 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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