Sysco Corporation (NYSE:SYY) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Sysco Corporation has received a consensus rating of “Moderate Buy” from 15 brokerage firms, with an average 12-month price target of $85.85.
• The company reported $1.48 EPS in its most recent earnings, exceeding analysts' estimates, alongside a revenue of $21.14 billion, marking a 2.8% increase year-over-year.
• Sysco has declared a quarterly dividend of $0.54 per share, which will be paid on October 24th, representing an annual yield of 2.7%.

Shares of Sysco Corporation (NYSE:SYY - Get Free Report) have received a consensus rating of "Moderate Buy" from the fifteen ratings firms that are covering the firm, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation and eleven have issued a buy recommendation on the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $85.8462.

SYY has been the subject of a number of recent analyst reports. Weiss Ratings reiterated a "buy (b-)" rating on shares of Sysco in a research report on Saturday, September 27th. Guggenheim upped their price target on shares of Sysco from $87.00 to $89.00 and gave the stock a "buy" rating in a research note on Monday. Bank of America raised their price objective on shares of Sysco from $81.00 to $93.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Wells Fargo & Company set a $88.00 target price on Sysco and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Finally, Morgan Stanley increased their price target on Sysco from $72.00 to $77.00 and gave the company an "equal weight" rating in a research note on Monday, July 14th.

Sysco Stock Down 1.6%

Sysco stock opened at $80.86 on Tuesday. The firm has a market capitalization of $38.69 billion, a P/E ratio of 21.68, a P/E/G ratio of 2.54 and a beta of 0.82. The company has a 50-day simple moving average of $80.87 and a 200-day simple moving average of $76.22. Sysco has a one year low of $67.12 and a one year high of $83.47. The company has a debt-to-equity ratio of 6.75, a quick ratio of 0.70 and a current ratio of 1.21.

Sysco (NYSE:SYY - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $1.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.39 by $0.09. Sysco had a return on equity of 109.52% and a net margin of 2.25%.The business had revenue of $21.14 billion during the quarter, compared to analyst estimates of $21.01 billion. During the same period in the prior year, the company posted $1.39 EPS. The business's revenue for the quarter was up 2.8% compared to the same quarter last year. Sysco has set its FY 2026 guidance at 4.500-4.600 EPS. As a group, equities analysts expect that Sysco will post 4.58 earnings per share for the current year.

Sysco Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 24th. Shareholders of record on Friday, October 3rd will be given a $0.54 dividend. The ex-dividend date is Friday, October 3rd. This represents a $2.16 annualized dividend and a yield of 2.7%. Sysco's payout ratio is 57.91%.

Insider Activity

In other news, EVP Ronald L. Phillips sold 37,606 shares of the firm's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $81.00, for a total transaction of $3,046,086.00. Following the completion of the sale, the executive vice president directly owned 30,235 shares of the company's stock, valued at $2,449,035. This trade represents a 55.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Greg D. Bertrand sold 40,000 shares of Sysco stock in a transaction on Tuesday, July 22nd. The stock was sold at an average price of $80.00, for a total value of $3,200,000.00. Following the completion of the transaction, the executive vice president owned 56,304 shares in the company, valued at $4,504,320. The trade was a 41.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 92,338 shares of company stock valued at $7,439,331. Insiders own 0.54% of the company's stock.

Hedge Funds Weigh In On Sysco

A number of institutional investors have recently bought and sold shares of the stock. Norges Bank purchased a new stake in Sysco during the second quarter valued at about $493,686,000. Boston Partners raised its holdings in shares of Sysco by 24.8% during the first quarter. Boston Partners now owns 15,199,828 shares of the company's stock valued at $1,139,798,000 after acquiring an additional 3,015,714 shares during the period. Canoe Financial LP lifted its position in shares of Sysco by 29,610.4% in the 1st quarter. Canoe Financial LP now owns 1,431,149 shares of the company's stock valued at $107,393,000 after acquiring an additional 1,426,332 shares in the last quarter. Vanguard Group Inc. boosted its stake in Sysco by 2.0% in the 2nd quarter. Vanguard Group Inc. now owns 62,691,177 shares of the company's stock worth $4,748,230,000 after purchasing an additional 1,226,381 shares during the period. Finally, Nuveen LLC purchased a new position in Sysco during the 1st quarter worth approximately $85,341,000. Hedge funds and other institutional investors own 83.41% of the company's stock.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.

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