Sysco (NYSE:SYY) Rating Increased to Buy at Wall Street Zen

Key Points

• Sysco's stock rating has been upgraded from "hold" to "buy" by analysts at Wall Street Zen, reflecting increased investor confidence.
• Price targets for Sysco's shares have been adjusted by several analysts, with Bank of America raising its target from $81.00 to $93.00.
• The company reported a quarterly earnings per share (EPS) of $1.48, exceeding expectations and showing year-over-year revenue growth of 2.8%.

Sysco (NYSE:SYY - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts have also recently commented on SYY. UBS Group set a $90.00 price target on shares of Sysco in a report on Wednesday, July 30th. Guggenheim upped their target price on Sysco from $87.00 to $89.00 and gave the stock a "buy" rating in a research report on Monday. Weiss Ratings lowered Sysco from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday. Barclays upped their target price on Sysco from $77.00 to $82.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Finally, Bank of America lifted their price objective on shares of Sysco from $81.00 to $93.00 and gave the company a "buy" rating in a report on Friday, July 18th. Ten research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $85.85.

Sysco Stock Performance

Shares of Sysco stock opened at $78.44 on Friday. The company has a current ratio of 1.21, a quick ratio of 0.70 and a debt-to-equity ratio of 6.75. The business has a 50-day moving average price of $80.81 and a two-hundred day moving average price of $76.37. Sysco has a 1-year low of $67.12 and a 1-year high of $83.47. The company has a market cap of $37.53 billion, a P/E ratio of 21.03, a PEG ratio of 2.42 and a beta of 0.82.

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

Insider Activity

In related news, EVP Ronald L. Phillips sold 37,606 shares of the business's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $81.00, for a total transaction of $3,046,086.00. Following the transaction, the executive vice president directly owned 30,235 shares in the company, valued at approximately $2,449,035. The trade was a 55.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 approximately $4,504,320. This trade represents a 41.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 92,338 shares of company stock worth $7,439,331. 0.54% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SYY. Norges Bank purchased a new position in Sysco during the second quarter worth about $493,686,000. Boston Partners increased its stake in shares of Sysco by 24.8% during the 1st quarter. Boston Partners now owns 15,199,828 shares of the company's stock worth $1,139,798,000 after purchasing an additional 3,015,714 shares during the last quarter. Canoe Financial LP raised its holdings 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 worth $107,393,000 after purchasing an additional 1,426,332 shares during the period. Vanguard Group Inc. lifted its stake in Sysco by 2.0% in the second quarter. Vanguard Group Inc. now owns 62,691,177 shares of the company's stock valued at $4,748,230,000 after purchasing an additional 1,226,381 shares during the last quarter. Finally, Nuveen LLC bought a new position in Sysco during the first quarter valued at $85,341,000. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

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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