Sysco (NYSE:SYY) Reaches New 52-Week High - Here's Why

Key Points

• Sysco Corporation's stock reached a new 52-week high of $83.30 and was last traded at $82.80, showing strong trading activity with a volume of 144,765 shares.
• Analysts are optimistic about Sysco's future, with multiple firms raising their target prices; Bank of America set a target of $93.00, while the consensus rating for the stock is "Moderate Buy" with an average target of $85.69.
• Sysco announced a quarterly dividend of $0.54 per share, representing an annualized dividend yield of 2.6%, with the next payment scheduled for October 24th.

Sysco Corporation (NYSE:SYY - Get Free Report) reached a new 52-week high during trading on Thursday . The company traded as high as $83.30 and last traded at $82.80, with a volume of 144765 shares trading hands. The stock had previously closed at $82.82.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on SYY. Bank of America boosted their target price on shares of Sysco from $81.00 to $93.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Guggenheim increased their target price on Sysco from $85.00 to $87.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. UBS Group set a $90.00 price objective on shares of Sysco in a report on Wednesday, July 30th. Truist Financial increased their price objective on shares of Sysco from $81.00 to $90.00 and gave the stock a "buy" rating in a research note on Wednesday, July 30th. Finally, Morgan Stanley upped their target price on Sysco from $72.00 to $77.00 and gave the company an "equal weight" rating in a report on Monday, July 14th. Ten research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $85.69.

Sysco Trading Up 0.1%

The business's 50 day moving average is $80.75 and its two-hundred day moving average is $75.98. The firm has a market capitalization of $40.19 billion, a P/E ratio of 22.22, a PEG ratio of 2.55 and a beta of 0.82. The company has a quick ratio of 0.70, a current ratio of 1.21 and a debt-to-equity ratio of 6.75.

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, beating the consensus estimate 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 revenue was up 2.8% on a year-over-year basis. During the same period last year, the firm posted $1.39 earnings per share. Sysco has set its FY 2026 guidance at 4.500-4.600 EPS. Analysts expect that Sysco Corporation will post 4.58 EPS for the current year.

Sysco Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 24th. Stockholders of record on Friday, October 3rd will be given a dividend of $0.54 per share. The ex-dividend date is Friday, October 3rd. This represents a $2.16 annualized dividend and a dividend yield of 2.6%. Sysco's dividend payout ratio (DPR) is 57.91%.

Insider Activity at Sysco

In other Sysco news, EVP Greg D. Bertrand sold 40,000 shares of the company's 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 transaction, the executive vice president owned 56,304 shares of the company's stock, valued at approximately $4,504,320. This represents a 41.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 value of $3,046,086.00. Following the sale, the executive vice president directly owned 30,235 shares of the company's stock, valued at approximately $2,449,035. This represents a 55.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 92,338 shares of company stock worth $7,439,331 in the last ninety days. Corporate insiders own 0.54% of the company's stock.

Hedge Funds Weigh In On Sysco

Hedge funds and other institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC increased its position in shares of Sysco by 6,605.6% in the first quarter. GAMMA Investing LLC now owns 468,925 shares of the company's stock worth $35,188,000 after acquiring an additional 461,932 shares in the last quarter. Merit Financial Group LLC lifted its holdings in shares of Sysco by 23.7% in the first quarter. Merit Financial Group LLC now owns 39,696 shares of the company's stock valued at $2,979,000 after purchasing an additional 7,612 shares in the last quarter. Fulton Bank N.A. lifted its stake in Sysco by 1.6% in the 1st quarter. Fulton Bank N.A. now owns 12,082 shares of the company's stock worth $907,000 after acquiring an additional 194 shares in the last quarter. Whipplewood Advisors LLC grew its stake in Sysco by 37.2% during the 1st quarter. Whipplewood Advisors LLC now owns 3,679 shares of the company's stock valued at $276,000 after acquiring an additional 998 shares in the last quarter. Finally, Unigestion Holding SA increased its holdings in shares of Sysco by 45.7% in the 1st quarter. Unigestion Holding SA now owns 14,006 shares of the company's stock valued at $1,051,000 after purchasing an additional 4,393 shares during the period. Institutional investors and hedge funds own 83.41% of the company's stock.

Sysco Company Profile

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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