Sysco Corporation (NYSE:SYY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday, May 10th.
According to Zacks, “Sysco reported third-quarter fiscal 2017 results, wherein earnings met expectations, while top line outpaced the estimates. Moreover, Sysco’s shares have been outperforming the Zacks-categorized industry over the past one year. Earnings rose 10.9% in the quarter. Growth in sales, expense management, and improved gross and operating margin led to the upside. The acquisition of London-based Brakes Group led to a sales increase of 12.7% on a year-over-year basis. We note that the company’s sales have improved consistently driven by acquisitions and volume growth. Sysco’s efforts to boost sales and margins are paying up, as the company has delivered positive gross margins in the last eight consecutive quarters, after declining consistently since past several quarters. However, stiff competition remains a concern.”
Several other equities research analysts have also recently issued reports on SYY. Royal Bank Of Canada initiated coverage on Sysco Corporation in a research note on Tuesday, January 24th. They set a “sector perform” rating and a $47.00 target price for the company. Credit Suisse Group raised Sysco Corporation from a “neutral” rating to an “outperform” rating and set a $59.00 target price for the company in a research note on Monday, February 6th. J P Morgan Chase & Co raised Sysco Corporation from a “neutral” rating to an “overweight” rating and set a $57.00 target price for the company in a research note on Tuesday, February 7th. Guggenheim reissued a “neutral” rating on shares of Sysco Corporation in a research note on Tuesday, February 7th. Finally, BMO Capital Markets set a $56.00 target price on Sysco Corporation and gave the stock a “hold” rating in a research note on Tuesday, February 7th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $56.30.
Sysco Corporation (SYY) opened at 55.53 on Wednesday. The stock’s 50 day moving average is $54.54 and its 200 day moving average is $53.65. Sysco Corporation has a 12-month low of $47.15 and a 12-month high of $57.07. The company has a market cap of $29.72 billion, a P/E ratio of 29.27 and a beta of 0.53.
Sysco Corporation (NYSE:SYY) last posted its earnings results on Monday, May 8th. The company reported $0.51 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.51. The company had revenue of $13.52 billion during the quarter, compared to analysts’ expectations of $13.14 billion. Sysco Corporation had a return on equity of 47.28% and a net margin of 1.93%. The firm’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.46 earnings per share. On average, equities analysts forecast that Sysco Corporation will post $2.47 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, July 28th. Investors of record on Friday, July 7th will be issued a $0.33 dividend. The ex-dividend date is Wednesday, July 5th. This represents a $1.32 dividend on an annualized basis and a yield of 2.38%. Sysco Corporation’s dividend payout ratio (DPR) is presently 69.47%.
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In related news, CEO William J. Delaney III sold 30,000 shares of Sysco Corporation stock in a transaction on Wednesday, May 17th. The stock was sold at an average price of $54.22, for a total value of $1,626,600.00. Following the completion of the transaction, the chief executive officer now directly owns 406,725 shares in the company, valued at $22,052,629.50. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Wayne Shurts sold 15,600 shares of Sysco Corporation stock in a transaction on Tuesday, June 13th. The shares were sold at an average price of $55.32, for a total value of $862,992.00. Following the completion of the transaction, the insider now owns 58,776 shares of the company’s stock, valued at $3,251,488.32. The disclosure for this sale can be found here. Over the last quarter, insiders sold 114,600 shares of company stock valued at $6,131,928. 8.81% of the stock is currently owned by company insiders.
A number of hedge funds have recently made changes to their positions in the company. Clearbridge Investments LLC increased its stake in shares of Sysco Corporation by 2.7% in the first quarter. Clearbridge Investments LLC now owns 3,677,251 shares of the company’s stock worth $190,923,000 after buying an additional 96,602 shares during the period. Laurel Wealth Advisors Inc. increased its stake in shares of Sysco Corporation by 1.1% in the first quarter. Laurel Wealth Advisors Inc. now owns 10,218 shares of the company’s stock worth $530,000 after buying an additional 115 shares during the period. Piedmont Investment Advisors LLC increased its stake in shares of Sysco Corporation by 1.2% in the first quarter. Piedmont Investment Advisors LLC now owns 164,160 shares of the company’s stock worth $8,523,000 after buying an additional 1,875 shares during the period. Stonebridge Capital Advisors LLC increased its stake in shares of Sysco Corporation by 0.6% in the first quarter. Stonebridge Capital Advisors LLC now owns 31,292 shares of the company’s stock worth $1,625,000 after buying an additional 195 shares during the period. Finally, Achmea Investment Management B.V. acquired a new stake in shares of Sysco Corporation during the first quarter worth about $6,510,000. 78.91% of the stock is owned by institutional investors.
Sysco Corporation Company Profile
Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States.
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