Weiss Ratings Downgrades Sysco (NYSE:SYY) to Hold (C+)

Key Points

• Weiss Ratings has dropped Sysco (NYSE:SYY) from a "buy" rating to a "hold" rating, reflecting a more cautious outlook for the stock.
• Recent stock performance shows Sysco shares declined 1.5% to $78.76, with a consensus rating of "Moderate Buy" and an average price target of $85.85.
• Multiple analysts, including Truist Financial and Wells Fargo, have increased their price targets for Sysco, signaling varying degrees of investor optimism.

Sysco (NYSE:SYY - Get Free Report) was downgraded by stock analysts at Weiss Ratings from a "buy (b-)" rating to a "hold (c+)" rating in a report issued on Wednesday,Weiss Ratings reports.

A number of other research analysts have also recently issued reports on SYY. Truist Financial lifted their price objective on shares of Sysco from $81.00 to $90.00 and gave the company a "buy" rating in a research note on Wednesday, July 30th. Wells Fargo & Company set a $88.00 target price on shares of Sysco and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Guggenheim increased their price target on shares of Sysco from $87.00 to $89.00 and gave the stock a "buy" rating in a report on Monday. UBS Group set a $90.00 target price on shares of Sysco in a research report on Wednesday, July 30th. Finally, Morgan Stanley lifted their price target on shares of Sysco from $72.00 to $77.00 and gave the stock an "equal weight" rating in a research note on Monday, July 14th. Ten research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Sysco has a consensus rating of "Moderate Buy" and an average price target of $85.85.

Sysco Stock Down 1.5%

Shares of SYY traded down $1.19 during mid-day trading on Wednesday, reaching $78.76. The company's stock had a trading volume of 3,169,218 shares, compared to its average volume of 3,053,860. Sysco has a 1 year low of $67.12 and a 1 year high of $83.47. The company has a quick ratio of 0.70, a current ratio of 1.21 and a debt-to-equity ratio of 6.75. The company has a market cap of $37.69 billion, a price-to-earnings ratio of 21.12, a price-to-earnings-growth ratio of 2.48 and a beta of 0.82. The business has a fifty day moving average of $80.87 and a 200 day moving average of $76.26.

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

Insider Activity

In other news, EVP Ronald L. Phillips sold 961 shares of Sysco stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $81.00, for a total transaction of $77,841.00. Following the transaction, the executive vice president owned 41,501 shares in the company, valued at approximately $3,361,581. The trade was a 2.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 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. This represents a 41.54% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 92,338 shares of company stock worth $7,439,331. Company insiders own 0.54% of the company's stock.

Institutional Trading of Sysco

Hedge funds have recently added to or reduced their stakes in the business. Boyd Watterson Asset Management LLC OH increased its position in Sysco by 106.4% during the first quarter. Boyd Watterson Asset Management LLC OH now owns 3,147 shares of the company's stock worth $236,000 after buying an additional 1,622 shares during the last quarter. Gradient Investments LLC increased its stake in Sysco by 9.2% in the 2nd quarter. Gradient Investments LLC now owns 189,169 shares of the company's stock valued at $14,328,000 after buying an additional 15,906 shares during the last quarter. Beacon Financial Group increased its stake in shares of Sysco by 55.5% during the 2nd quarter. Beacon Financial Group now owns 9,955 shares of the company's stock worth $754,000 after purchasing an additional 3,554 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its holdings in Sysco by 2.3% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 223,510 shares of the company's stock worth $16,772,000 after buying an additional 4,932 shares during the period. Finally, Gallacher Capital Management LLC bought a new stake in shares of Sysco during the 2nd quarter worth $730,000. Institutional investors and hedge funds own 83.41% of the company's stock.

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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