Sysco (NYSE:SYY) Shares Break Below Two Hundred Day Moving Average - Here's What Happened

Key Points

• Sysco shares fell below their 200-day moving average, trading as low as $73.72 versus the average of $80.52.
• Fiscal first-quarter adjusted EPS of $1.19 met expectations, but revenue of $21.74 billion missed estimates of $22.02 billion; sales rose 2.8% year over year, with a cyclosporiasis outbreak weighing on results.
• Sysco reiterated its fiscal 2027 adjusted EPS growth outlook of 9%–11% and expects AI initiatives to save $100 million that year. Analysts’ average rating is “Moderate Buy,” with an average price target of $90.42.

Sysco Corporation (NYSE:SYY - Get Free Report)'s share price passed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $80.52 and traded as low as $73.72. Sysco shares last traded at $74.1170, with a volume of 9,408,227 shares trading hands.

Trending Headlines about Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Local case volume grew 2.7% in the first quarter, and Sysco reiterated its fiscal 2027 adjusted EPS growth outlook of 9%–11%. The company also expects its AI transformation efforts to generate $100 million in savings in fiscal 2027. Sysco: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Sysco reported adjusted first-quarter EPS of $1.19, in line with the company’s cited consensus estimate and ahead of the $1.17 estimate reported by Zacks. It also named interim CFO Brandon Sewell as permanent CFO, providing continuity in the finance leadership role. Sysco Q1 Earnings: Sales Miss Estimates, Full-Year EPS Outlook Unchanged
• Negative Sentiment: Revenue of $21.74 billion was below the $22.02 billion analyst estimate, despite increasing 2.8% year over year. The company said a cyclosporiasis outbreak affected first-quarter sales, while costs related to the Jetro acquisition and concerns around sales guidance added pressure. The revenue miss appears to have outweighed the EPS result and reaffirmed full-year earnings outlook. Food distributor Sysco says cyclosporiasis outbreak hit Q1 sales Sysco under pressure on Jetro acquisition costs, FY sales guidance

Analysts Set New Price Targets

Several equities research analysts have recently commented on SYY shares. UBS Group lifted their price objective on shares of Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Piper Sandler upped their target price on Sysco from $77.00 to $84.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. reduced their target price on Sysco from $100.00 to $95.00 and set an "overweight" rating for the company in a research note on Tuesday, September 29th. Citigroup reaffirmed a "neutral" rating on shares of Sysco in a research report on Monday, October 26th. Finally, Weiss Ratings upgraded Sysco from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 15th. Nine equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $90.42.

Sysco Trading Down 9.3%

The company has a debt-to-equity ratio of 4.62, a current ratio of 1.28 and a quick ratio of 0.77. The company's fifty day moving average is $80.30 and its 200-day moving average is $80.52. The stock has a market cap of $36.46 billion, a PE ratio of 20.25, a PEG ratio of 2.30 and a beta of 0.66.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported $1.19 EPS for the quarter, meeting the consensus estimate of $1.19. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The company had revenue of $21.74 billion for the quarter, compared to analyst estimates of $22.02 billion. During the same period in the prior year, the company earned $1.15 earnings per share. The firm's revenue was up 2.8% on a year-over-year basis. On average, analysts predict that Sysco Corporation will post 5.09 earnings per share for the current fiscal year.

Sysco Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd were issued a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend was Friday, October 2nd. Sysco's payout ratio is 60.11%.

Insider Activity at Sysco

In other news, EVP Ronald Phillips sold 960 shares of the company's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $83.00, for a total value of $79,680.00. Following the sale, the executive vice president owned 49,852 shares in the company, valued at $4,137,716. This represents a 1.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of SYY. N.E.W. Advisory Services LLC purchased a new position in Sysco in the second quarter worth approximately $29,000. Salomon & Ludwin LLC raised its position in Sysco by 718.6% in the third quarter. Salomon & Ludwin LLC now owns 352 shares of the company's stock valued at $27,000 after purchasing an additional 309 shares during the period. Sunbelt Securities Inc. raised its position in 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 purchasing an additional 170 shares during the period. Markowski Investments purchased a new stake in Sysco in the second quarter valued at $31,000. Finally, Parvin Asset Management LLC acquired a new position in shares of Sysco in the 2nd quarter valued at $32,000. 83.41% of the stock is owned by institutional investors and hedge funds.

About Sysco

Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.

The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.

Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.

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