Sysco (NYSE:SYY) EVP Sells $79,680.00 in Stock

Key Points

• Sysco EVP Ronald Phillips sold 960 shares at $83 each for $79,680 under a pre-arranged Rule 10b5-1 plan, reportedly to cover tax withholding on vested equity awards. He retained 49,852 shares.
• Sysco’s latest quarter exceeded expectations, with EPS of $1.53 and revenue of $22.12 billion; revenue rose 4.7% year over year. The company also announced a quarterly dividend of $0.55 per share, representing a 2.8% yield.
• Shares recently traded near $79.67, while analysts maintained a “Moderate Buy” consensus with an average price target of $89.50. However, Sysco’s planned $1 billion stock offering to help fund the Jetro Restaurant Depot transaction could dilute existing shareholders and introduce execution risks.

Sysco Corporation (NYSE:SYY - Get Free Report) EVP Ronald Phillips sold 960 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $83.00, for a total value of $79,680.00. Following the completion of the sale, the executive vice president directly owned 49,852 shares of the company's stock, valued at approximately $4,137,716. The trade was a 1.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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.

Sysco Stock Performance

Shares of NYSE SYY traded down $3.87 during midday trading on Tuesday, hitting $79.67. 13,660,925 shares of the company's stock were exchanged, compared to its average volume of 4,045,529. The company has a quick ratio of 0.77, a current ratio of 1.28 and a debt-to-equity ratio of 4.62. The firm has a market capitalization of $38.17 billion, a PE ratio of 21.77, a price-to-earnings-growth ratio of 2.86 and a beta of 0.63. Sysco Corporation has a 12 month low of $68.19 and a 12 month high of $91.85. The company's 50 day moving average price is $82.86 and its 200 day moving average price is $79.93.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly 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 return on equity of 95.05% and a net margin of 2.08%.The business had revenue of $22.12 billion for the quarter, compared to analysts' expectations of $21.95 billion. During the same quarter in the prior year, the business earned $1.48 EPS. The firm's revenue for the quarter was up 4.7% on a year-over-year basis. 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, analysts predict that Sysco Corporation will post 5.08 earnings per share for the current fiscal year.

Sysco Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd will be paid a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Friday, October 2nd. Sysco's dividend payout ratio (DPR) is currently 60.11%.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Wall Street Zen cut shares of Sysco from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. UBS Group upped their target price on Sysco from $90.00 to $95.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Melius Research lowered Sysco from a "hold" rating to a "sell" rating in a research note on Tuesday, July 7th. Citigroup lifted their price target on Sysco from $82.00 to $86.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Finally, Piper Sandler boosted their price target on Sysco from $77.00 to $84.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. Nine analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $89.50.

Sysco News Summary

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: The offering is expected to provide approximately $1 billion of capital to support Sysco’s Jetro Restaurant Depot transaction, potentially strengthening its position in restaurant distribution and expanding its long-term growth platform. Sysco launches $1bn share sale to help fund Jetro deal
• Positive Sentiment: Sysco priced the offering at $81 per share, with 12,345,679 shares expected to be issued. The transaction is scheduled to close September 16, subject to customary conditions, giving the company a defined source of acquisition funding. Sysco Announces Pricing of Common Stock Offering
• Neutral Sentiment: Analysts and financial media continue to characterize Sysco as a defensive stock because foodservice demand tends to be relatively consistent during periods of market volatility. That may provide some downside support, although it does not offset the immediate financing concerns. 3 Defensive-Styled Stocks to Help Weather Volatility
• Negative Sentiment: The new shares will dilute existing shareholders’ ownership and earnings per share. The stock offering was the primary catalyst for the weaker trading performance and caused SYY to underperform some competitors. Sysco Planning $1 Billion Share Offering
• Negative Sentiment: Investors are also weighing execution and integration risks associated with the Jetro Restaurant Depot merger. While the deal could expand Sysco’s reach, the equity financing signals that part of the transaction will be funded through newly issued stock rather than existing resources. Sysco Advances Jetro Restaurant Depot Merger Disclosure Process

Institutional Trading of Sysco

Several hedge funds and other institutional investors have recently bought and sold shares of SYY. United Capital Financial Advisors LLC acquired a new stake in shares of Sysco in the second quarter valued at approximately $2,633,000. Rakuten Investment Management Inc. acquired a new stake in Sysco during the second quarter worth approximately $6,523,000. Empowered Funds LLC bought a new position in Sysco during the 2nd quarter worth $9,370,000. Norges Bank acquired a new position in Sysco in the 4th quarter valued at $542,780,000. Finally, Banque Cantonale Vaudoise raised its holdings in Sysco by 301.9% in the 1st quarter. Banque Cantonale Vaudoise now owns 16,828 shares of the company's stock valued at $1,200,000 after acquiring an additional 12,641 shares in the last quarter. Institutional investors and hedge funds own 83.41% of the company's stock.

Sysco Company Profile

Sysco Corporation NYSE: SYY is a global foodservice distributor that supplies restaurants, health care and educational institutions, hospitality businesses, government facilities, and other customers. Its product portfolio includes fresh and frozen foods, meat and seafood, dairy products, produce, pantry staples, beverages, and specialty items, along with nonfood products such as kitchen equipment, cleaning supplies, and disposable serving products.

In addition to distribution, Sysco provides services designed to support foodservice operators, including menu planning, culinary consulting, merchandising assistance, supply-chain solutions, and business-management resources.

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