Sysco (NYSE:SYY) Lowered to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sysco from "buy" to "hold"; overall analyst split is nine Buys and seven Holds, leaving an average rating of Moderate Buy and an average price target of $88.15.
• Quarterly results slightly missed: Sysco reported EPS of $0.94 versus $0.95 expected and revenue of $20.52 billion versus $20.56 billion, though revenue rose 4.7% year‑over‑year and the company set Q4 2026 guidance at 1.51 EPS.
• Balance sheet and valuation: Sysco has a $35.4B market cap and P/E of 20.5, but carries a high debt‑to‑equity ratio of 5.58 and a quick ratio of 0.75, indicating notable leverage.

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

SYY has been the subject of several other reports. Jefferies Financial Group increased their price objective on Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a research report on Wednesday, January 28th. Sanford C. Bernstein lowered their price objective on Sysco from $90.00 to $85.00 and set a "market perform" rating for the company in a research report on Wednesday. Guggenheim lowered their price objective on Sysco from $95.00 to $90.00 and set a "buy" rating for the company in a research report on Thursday, April 2nd. Argus upgraded Sysco to a "hold" rating in a research report on Thursday, January 29th. Finally, Weiss Ratings lowered Sysco from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 30th. Nine research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $88.15.

Sysco Price Performance

NYSE:SYY opened at $74.08 on Friday. Sysco has a 12 month low of $68.19 and a 12 month high of $91.85. The stock has a 50 day moving average of $79.95 and a two-hundred day moving average of $78.41. The company has a current ratio of 1.33, a quick ratio of 0.75 and a debt-to-equity ratio of 5.58. The firm has a market cap of $35.42 billion, a P/E ratio of 20.52, a price-to-earnings-growth ratio of 3.62 and a beta of 0.66.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $0.94 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.95 by ($0.01). The company had revenue of $20.52 billion during the quarter, compared to analysts' expectations of $20.56 billion. Sysco had a net margin of 2.08% and a return on equity of 103.57%. Sysco's revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter last year, the company earned $0.96 earnings per share. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. On average, analysts expect that Sysco will post 4.59 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Sysco news, Director Sheila Talton sold 2,801 shares of the firm's stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $82.99, for a total value of $232,454.99. Following the sale, the director directly owned 12,868 shares in the company, valued at $1,067,915.32. This trade represents a 17.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.56% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sysco

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Fifth Third Bancorp lifted its position in Sysco by 71.6% in the first quarter. Fifth Third Bancorp now owns 330,577 shares of the company's stock valued at $23,580,000 after purchasing an additional 137,979 shares during the period. Simplicity Wealth LLC lifted its position in Sysco by 4.3% in the first quarter. Simplicity Wealth LLC now owns 12,010 shares of the company's stock valued at $857,000 after purchasing an additional 491 shares during the period. Sequoia Financial Advisors LLC lifted its position in Sysco by 2.2% in the first quarter. Sequoia Financial Advisors LLC now owns 29,783 shares of the company's stock valued at $2,124,000 after purchasing an additional 650 shares during the period. DMC Group LLC lifted its position in Sysco by 3.0% in the first quarter. DMC Group LLC now owns 8,908 shares of the company's stock valued at $635,000 after purchasing an additional 260 shares during the period. Finally, First Horizon Corp lifted its position in Sysco by 4.5% in the first quarter. First Horizon Corp now owns 16,313 shares of the company's stock valued at $1,164,000 after purchasing an additional 697 shares during the period. Hedge funds and other institutional investors own 83.41% of the company's stock.

Sysco Company Profile

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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