Sysco Corporation (NYSE:SYY) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analyst sentiment is mixed but leans cautious: Sysco has an average rating of “Hold” from 17 analysts, with nine buys, seven holds, and one sell. The average 1-year price target is about $88.15.
• Recent earnings slightly missed expectations: Sysco reported $0.94 EPS versus the $0.95 consensus and revenue of $20.52 billion versus $20.56 billion expected. Revenue still grew 4.7% year over year.
• The company raised its dividend: Sysco increased its quarterly dividend to $0.55 per share from $0.54, implying an annualized dividend of $2.20 and a yield of about 2.6%.

Shares of Sysco Corporation (NYSE:SYY - Get Free Report) have been assigned an average recommendation of "Hold" from the seventeen analysts that are currently covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, seven have issued a hold recommendation and nine have given a buy recommendation to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $88.1538.

A number of research firms have commented on SYY. Guggenheim reduced their price target on Sysco from $95.00 to $90.00 and set a "buy" rating on the stock in a research report on Thursday, April 2nd. Piper Sandler lowered their price objective on Sysco from $83.00 to $77.00 and set a "neutral" rating for the company in a research report on Tuesday, April 7th. Citigroup lifted their price objective on Sysco from $78.00 to $80.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 29th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Sysco in a report on Friday, June 26th. Finally, Wall Street Zen downgraded shares of Sysco from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd.

Sysco Price Performance

SYY stock opened at $83.07 on Thursday. The company has a market capitalization of $39.72 billion, a P/E ratio of 23.01, a PEG ratio of 3.20 and a beta of 0.64. The company has a fifty day moving average price of $77.37 and a 200-day moving average price of $79.09. The company has a debt-to-equity ratio of 5.58, a quick ratio of 0.80 and a current ratio of 1.33. Sysco has a 52-week low of $68.19 and a 52-week high of $91.85.

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

Sysco Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Thursday, July 2nd will be paid a $0.55 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.6%. This is an increase from Sysco's previous quarterly dividend of $0.54. Sysco's payout ratio is currently 60.94%.

Insider Buying and Selling at Sysco

In other news, Director John M. Hinshaw bought 13,304 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was acquired at an average price of $75.17 per share, with a total value of $1,000,061.68. Following the completion of the purchase, the director directly owned 40,200 shares of the company's stock, valued at approximately $3,021,834. This represents a 49.46% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. 0.56% of the stock is currently owned by company insiders.

Institutional Trading of Sysco

A number of institutional investors have recently bought and sold shares of SYY. Lloyd Advisory Services LLC. acquired a new position in shares of Sysco in the 4th quarter valued at about $25,000. Motiv8 Investments LLC acquired a new stake in Sysco during the fourth quarter worth approximately $25,000. Sunbelt Securities Inc. grew its stake in Sysco by 87.6% during the first quarter. Sunbelt Securities Inc. now owns 364 shares of the company's stock worth $26,000 after purchasing an additional 170 shares during the period. Torren Management LLC bought a new stake in Sysco in the fourth quarter worth approximately $27,000. Finally, Bard Associates Inc. bought a new stake in Sysco in the fourth quarter worth approximately $27,000. Institutional investors own 83.41% of the company's stock.

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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