Zacks Investment Research upgraded shares of SYSCO (NYSE:SYY) from a sell rating to a hold rating in a research report report published on Friday morning.
According to Zacks, “Sysco, which has lagged the industry in the past three months, has long been battling cost-related hurdles. This, along with a soft international performance weighed on the company’s first-quarter fiscal 2019 results, wherein top and bottom lines missed estimates. Incidentally, International sales depicted a slowdown, with several restaurant closures and Brexit related worries impacting UK’s performance. The company expects its warehouse and transportation costs associated with supply chain to persist, which remains a threat to margins. Nonetheless, Sysco’s U.S. Foodservice division has been performing well for quite some time now, wherein local case volumes have been rising for 18 straight quarters, due to solid restaurant sales. A rosy economic scenario is likely to continue aiding restaurant sales. Also, focus on enhancing assortments, making innovations, ensuring food safety and revitalizing brands bodes well.”
Several other research firms also recently weighed in on SYY. Pivotal Research boosted their target price on SYSCO from $58.00 to $62.00 and gave the company a sell rating in a research report on Saturday, August 18th. Loop Capital boosted their target price on SYSCO to $80.00 and gave the company a buy rating in a research report on Tuesday, August 14th. Argus boosted their target price on SYSCO from $67.00 to $86.00 and gave the company a buy rating in a research report on Thursday, August 16th. BMO Capital Markets boosted their target price on SYSCO from $74.00 to $81.00 and gave the company an outperform rating in a research report on Tuesday, August 14th. Finally, Morgan Stanley boosted their target price on SYSCO from $67.00 to $71.00 and gave the company an equal weight rating in a research report on Tuesday, August 14th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the company. The company presently has a consensus rating of Hold and a consensus price target of $73.54.
SYSCO (NYSE:SYY) last released its earnings results on Monday, November 5th. The company reported $0.91 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.92 by ($0.01). The company had revenue of $15.22 billion for the quarter, compared to the consensus estimate of $15.39 billion. SYSCO had a net margin of 2.52% and a return on equity of 68.81%. The business’s revenue for the quarter was up 3.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.74 EPS. On average, equities analysts expect that SYSCO will post 3.4 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 25th. Shareholders of record on Friday, January 4th will be given a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 2.31%. The ex-dividend date of this dividend is Thursday, January 3rd. This is an increase from SYSCO’s previous quarterly dividend of $0.36. SYSCO’s dividend payout ratio is 45.86%.
In other SYSCO news, Director Richard G. Tilghman sold 5,000 shares of the company’s stock in a transaction on Thursday, November 15th. The stock was sold at an average price of $66.17, for a total value of $330,850.00. Following the transaction, the director now owns 7,055 shares of the company’s stock, valued at approximately $466,829.35. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Trian Fund Management, L.P. sold 2,115,358 shares of the company’s stock in a transaction on Wednesday, September 12th. The shares were sold at an average price of $74.81, for a total value of $158,249,931.98. Following the completion of the transaction, the director now directly owns 4,005 shares in the company, valued at approximately $299,614.05. The disclosure for this sale can be found here. Insiders sold a total of 7,700,671 shares of company stock worth $545,256,301 in the last ninety days. 7.88% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently made changes to their positions in SYY. Quad Cities Investment Group LLC bought a new position in shares of SYSCO during the 2nd quarter worth $111,000. Matthew Goff Investment Advisor LLC bought a new position in shares of SYSCO during the 3rd quarter worth $120,000. Flagship Harbor Advisors LLC bought a new position in shares of SYSCO during the 2nd quarter worth $121,000. Fort L.P. bought a new position in shares of SYSCO during the 2nd quarter worth $123,000. Finally, Daiwa SB Investments Ltd. bought a new position in shares of SYSCO during the 3rd quarter worth $132,000. 80.39% of the stock is currently owned by institutional investors.
Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. It operates through three segments: U.S. Foodservice Operations, International Foodservice Operations, and SYGMA. The company distributes a line of frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce.
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