Sysco Corporation $SYY Stock: GEM Asset Management LLC Lowers Position

Key Points

• GEM Asset Management reduced its Sysco position by 9.7% in the third quarter, selling 39,843 shares and retaining 370,623 shares valued at approximately $28.9 million. Sysco remains GEM’s largest holding, while institutional investors collectively own 83.41% of the stock.
• Analyst sentiment remains generally positive, with nine Buy, six Hold, and one Sell rating. Sysco has a “Moderate Buy” consensus and an average price target of $90.17, compared with shares opening at $78.98.
• Sysco exceeded quarterly expectations with adjusted earnings of $1.53 per share and revenue of $22.12 billion, up 4.7% year over year. The company also announced a quarterly dividend of $0.55 per share, equivalent to a 2.8% annualized yield.

GEM Asset Management LLC reduced its position in shares of Sysco Corporation (NYSE:SYY - Free Report) by 9.7% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 370,623 shares of the company's stock after selling 39,843 shares during the period. Sysco accounts for about 11.9% of GEM Asset Management LLC's holdings, making the stock its biggest position. GEM Asset Management LLC owned approximately 0.08% of Sysco worth $28,894,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Parkside Financial Bank & Trust lifted its position in shares of Sysco by 7.0% during the 2nd quarter. Parkside Financial Bank & Trust now owns 2,241 shares of the company's stock worth $187,000 after buying an additional 147 shares in the last quarter. Plimoth Trust Co. LLC boosted its stake in shares of Sysco by 4.2% in the 1st quarter. Plimoth Trust Co. LLC now owns 3,744 shares of the company's stock worth $267,000 after buying an additional 150 shares during the last quarter. Park National Corp OH boosted its stake in shares of Sysco by 1.8% in the 1st quarter. Park National Corp OH now owns 9,102 shares of the company's stock worth $649,000 after buying an additional 163 shares during the last quarter. 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 valued at $26,000 after acquiring an additional 170 shares in the last quarter. Finally, Cornerstone Wealth Group LLC grew its holdings in shares of Sysco by 5.5% in the first quarter. Cornerstone Wealth Group LLC now owns 3,341 shares of the company's stock valued at $250,000 after acquiring an additional 173 shares in the last quarter. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. JPMorgan Chase & Co. decreased their price target on Sysco from $100.00 to $95.00 and set an "overweight" rating for the company in a research report on Tuesday, September 29th. Morgan Stanley lifted their price target on Sysco from $84.00 to $88.00 and gave the stock an "equal weight" rating in a report on Thursday, July 16th. Wall Street Zen raised Sysco from a "hold" rating to a "buy" rating in a research report on Saturday, October 3rd. Weiss Ratings downgraded Sysco from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, September 28th. Finally, Melius Research downgraded Sysco from a "hold" rating to a "sell" rating in a research note on Tuesday, July 7th. Nine investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Sysco presently has an average rating of "Moderate Buy" and a consensus price target of $90.17.

Sysco Stock Performance

Shares of SYY stock opened at $78.98 on Wednesday. The firm has a market cap of $38.85 billion, a price-to-earnings ratio of 17.07, a P/E/G ratio of 2.74 and a beta of 0.64. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28. Sysco Corporation has a 52 week low of $68.19 and a 52 week high of $91.85. The firm's 50-day simple moving average is $80.79 and its two-hundred day simple moving average is $78.88.

Sysco (NYSE:SYY - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of $1.51 by $0.02. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The firm had revenue of $22.12 billion during the quarter, compared to the consensus estimate of $21.95 billion. During the same period in the prior year, the firm earned $1.48 EPS. The company's revenue was up 4.7% compared to the same quarter last year. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. As a group, equities analysts forecast that Sysco Corporation will post 5.10 earnings per share for the current year.

Sysco Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 2nd will be paid a $0.55 dividend. The ex-dividend date is Friday, October 2nd. This represents a $2.20 annualized dividend and a yield of 2.8%. Sysco's dividend payout ratio is presently 60.11%.

Insider Buying and Selling

In other Sysco news, EVP Ronald Phillips sold 7,350 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $83.61, for a total transaction of $614,533.50. Following the completion of the transaction, the executive vice president directly owned 38,650 shares of the company's stock, valued at approximately $3,231,526.50. This represents a 15.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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. Insiders sold a total of 15,525 shares of company stock valued at $1,299,736 in the last quarter. 0.55% of the stock is currently owned by corporate insiders.

Sysco Company Profile

Sysco Corporation is a global foodservice distributor headquartered in Houston, Texas. The company supplies restaurants, hotels, healthcare facilities, educational institutions, government organizations and other foodservice customers with a broad range of products and related services.

Sysco's offerings include fresh and frozen foods, meat and seafood, dairy products, produce, canned and dry goods, beverages, specialty and international foods, and prepared and ready-to-use items. The company also distributes nonfood products such as kitchen equipment, tableware, cleaning supplies and other operating supplies.

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