Sysco (NYSE:SYY) Stock Rating Upgraded by Wall Street Zen

Key Points

• Sysco has been upgraded to a "buy" rating by Wall Street Zen, indicating increased investor confidence.
• Multiple brokerages including Guggenheim and Barclays have raised their target prices for Sysco, with the consensus price target now at $85.69.
• Sysco reported better-than-expected earnings with an EPS of $1.48 against a consensus estimate of $1.39, showcasing a 2.8% increase in quarterly revenue year-over-year.

Wall Street Zen upgraded shares of Sysco (NYSE:SYY - Free Report) from a hold rating to a buy rating in a research report report published on Saturday morning.

A number of other equities research analysts also recently weighed in on SYY. Barclays raised their target price on Sysco from $77.00 to $82.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Wells Fargo & Company set a $88.00 price objective on Sysco and gave the company an "overweight" rating in a research note on Tuesday, July 29th. Morgan Stanley boosted their target price on Sysco from $72.00 to $77.00 and gave the stock an "equal weight" rating in a research note on Monday, July 14th. Bank of America increased their target price on shares of Sysco from $81.00 to $93.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Finally, Guggenheim lifted their price target on shares of Sysco from $85.00 to $87.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Ten investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $85.69.

Sysco Price Performance

Shares of NYSE SYY traded up $0.38 during mid-day trading on Friday, reaching $80.93. The company had a trading volume of 2,570,851 shares, compared to its average volume of 3,285,893. Sysco has a one year low of $67.12 and a one year high of $82.64. The business's 50-day simple moving average is $78.87 and its 200 day simple moving average is $74.85. The company has a debt-to-equity ratio of 6.75, a quick ratio of 0.70 and a current ratio of 1.21. The firm has a market cap of $39.23 billion, a price-to-earnings ratio of 21.71, a PEG ratio of 2.49 and a beta of 0.80.

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

Sysco Announces Dividend

The company 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 2.7%. Sysco's dividend payout ratio is 57.91%.

Insider Activity

In other 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 value of $3,200,000.00. Following the transaction, the executive vice president directly owned 56,304 shares of the company's stock, valued at $4,504,320. The trade was a 41.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Ronald L. Phillips sold 37,606 shares of the company's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $81.00, for a total value of $3,046,086.00. Following the sale, the executive vice president owned 30,235 shares in the company, valued at approximately $2,449,035. The trade was a 55.43% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 84,026 shares of company stock valued at $6,766,059. Corporate insiders own 0.54% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Boyd Watterson Asset Management LLC OH boosted its position in shares of Sysco by 106.4% during the 1st quarter. Boyd Watterson Asset Management LLC OH now owns 3,147 shares of the company's stock worth $236,000 after purchasing an additional 1,622 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its position in shares of Sysco by 2.3% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 223,510 shares of the company's stock worth $16,772,000 after purchasing an additional 4,932 shares during the period. Fiduciary Trust Co lifted its holdings in shares of Sysco by 0.3% in the 4th quarter. Fiduciary Trust Co now owns 66,495 shares of the company's stock worth $5,084,000 after purchasing an additional 196 shares in the last quarter. Dynamic Advisor Solutions LLC acquired a new stake in Sysco in the 1st quarter valued at $202,000. Finally, Golden State Wealth Management LLC increased its stake in Sysco by 48.4% during the 1st quarter. Golden State Wealth Management LLC now owns 429 shares of the company's stock valued at $32,000 after purchasing an additional 140 shares in the last quarter. 83.41% of the stock is owned by institutional investors.

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.