Sysco (NYSE:SYY) Shares Gap Down After Earnings Miss

Sysco Co. (NYSE:SYY - Get Free Report)'s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $70.42, but opened at $68.36. Sysco shares last traded at $69.85, with a volume of 693,857 shares traded.

The company reported $0.96 EPS for the quarter, missing analysts' consensus estimates of $1.02 by ($0.06). Sysco had a return on equity of 106.30% and a net margin of 2.40%. The firm had revenue of $19.60 billion during the quarter, compared to the consensus estimate of $20.11 billion. During the same quarter in the prior year, the firm posted $0.96 earnings per share. The business's revenue for the quarter was up 1.1% compared to the same quarter last year.

Sysco Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Thursday, July 3rd will be paid a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a yield of 3.05%. This is an increase from Sysco's previous quarterly dividend of $0.51. The ex-dividend date of this dividend is Thursday, July 3rd. Sysco's payout ratio is 55.96%.

Wall Street Analyst Weigh In

Several brokerages have weighed in on SYY. Wells Fargo & Company lowered their price target on Sysco from $87.00 to $80.00 and set an "overweight" rating for the company in a report on Wednesday. UBS Group dropped their target price on shares of Sysco from $86.00 to $83.00 and set a "buy" rating on the stock in a research report on Wednesday. Barclays decreased their price target on shares of Sysco from $87.00 to $77.00 and set an "overweight" rating for the company in a report on Wednesday. Guggenheim reissued a "buy" rating and set a $85.00 price objective on shares of Sysco in a report on Wednesday, January 29th. Finally, Sanford C. Bernstein set a $87.00 target price on Sysco and gave the stock an "overweight" rating in a research note on Tuesday, April 22nd. Three investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $83.38.

Insider Buying and Selling at Sysco

In related news, Director Sheila Talton sold 356 shares of the firm's stock in a transaction on Thursday, May 1st. The shares were sold at an average price of $70.84, for a total transaction of $25,219.04. Following the sale, the director now owns 12,738 shares in the company, valued at approximately $902,359.92. This trade represents a 2.72 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.54% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sysco

A number of large investors have recently added to or reduced their stakes in SYY. Rialto Wealth Management LLC increased its stake in Sysco by 188.7% during the 1st quarter. Rialto Wealth Management LLC now owns 332 shares of the company's stock worth $25,000 after buying an additional 217 shares in the last quarter. Parvin Asset Management LLC purchased a new stake in shares of Sysco during the fourth quarter worth approximately $29,000. Stonebridge Financial Group LLC acquired a new position in Sysco in the 4th quarter valued at $31,000. Sherman Asset Management Inc. acquired a new stake in Sysco during the 4th quarter worth $31,000. Finally, Flagship Wealth Advisors LLC purchased a new stake in shares of Sysco during the fourth quarter worth $31,000. 83.41% of the stock is currently owned by institutional investors and hedge funds.

Sysco Price Performance

The stock's fifty day moving average price is $72.59 and its 200-day moving average price is $74.29. The company has a debt-to-equity ratio of 5.66, a current ratio of 1.20 and a quick ratio of 0.68. The firm has a market cap of $34.61 billion, a PE ratio of 18.19, a price-to-earnings-growth ratio of 1.88 and a beta of 0.91.

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.