Sysco (NYSE:SYY) Cut to Hold at Wall Street Zen

Key Points

• Sysco has been downgraded from a "buy" to a "hold" rating by Wall Street Zen in their latest research report.
• Despite the downgrade, Sysco has a consensus rating of "Moderate Buy" from analysts, with ten rating it as a buy and a target price of $85.69.
• Sysco reported earnings of $1.48 per share, exceeding expectations, and had a revenue of $21.14 billion for the quarter, marking a 2.8% year-over-year increase.

Sysco (NYSE:SYY - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

SYY has been the topic of several other research reports. Citigroup assumed coverage on Sysco in a report on Thursday, May 22nd. They set a "neutral" rating and a $78.00 price objective on the stock. JPMorgan Chase & Co. raised their price objective on Sysco from $82.00 to $85.00 and gave the stock an "overweight" rating in a report on Tuesday, May 20th. Morgan Stanley raised their price objective on Sysco from $72.00 to $77.00 and gave the stock an "equal weight" rating in a report on Monday, July 14th. Wells Fargo & Company set a $88.00 price target on Sysco and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Finally, Barclays boosted their price target on Sysco from $77.00 to $82.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Ten research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $85.69.

Sysco Price Performance

SYY stock opened at $81.37 on Friday. Sysco has a 52-week low of $67.12 and a 52-week high of $83.17. The stock's fifty day simple moving average is $79.70 and its 200-day simple moving average is $75.35. The company has a quick ratio of 0.70, a current ratio of 1.21 and a debt-to-equity ratio of 6.75. The stock has a market capitalization of $39.44 billion, a price-to-earnings ratio of 21.81, a price-to-earnings-growth ratio of 2.51 and a beta of 0.80.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts' expectations of $21.01 billion. During the same quarter last year, the firm earned $1.39 earnings per share. The business's revenue was up 2.8% on a year-over-year basis. Sysco has set its FY 2026 guidance at 4.500-4.600 EPS. Equities research analysts expect that Sysco will post 4.58 EPS for the current year.

Insider Transactions at Sysco

In other Sysco news, EVP Greg D. Bertrand sold 40,000 shares of the business's stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $80.00, for a total transaction of $3,200,000.00. Following 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Ronald L. Phillips sold 37,606 shares of the business's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $81.00, for a total value of $3,046,086.00. Following the transaction, the executive vice president owned 30,235 shares in the company, valued at approximately $2,449,035. This represents a 55.43% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 92,338 shares of company stock worth $7,439,331. 0.54% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Rialto Wealth Management LLC lifted its stake in shares of Sysco by 188.7% during the first quarter. Rialto Wealth Management LLC now owns 332 shares of the company's stock worth $25,000 after purchasing an additional 217 shares in the last quarter. Chung Wu Investment Group LLC purchased a new position in Sysco in the second quarter valued at about $30,000. Darwin Wealth Management LLC acquired a new stake in Sysco during the 2nd quarter valued at approximately $31,000. Golden State Wealth Management LLC increased its holdings in Sysco by 48.4% during the 1st quarter. Golden State Wealth Management LLC now owns 429 shares of the company's stock worth $32,000 after purchasing an additional 140 shares during the last quarter. Finally, Vermillion & White Wealth Management Group LLC increased its holdings in Sysco by 94.9% during the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 419 shares of the company's stock worth $32,000 after purchasing an additional 204 shares during the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.