Traders Buy Shares of SYSCO (SYY) on Weakness

Investors purchased shares of SYSCO Co. (NYSE:SYY) on weakness during trading on Monday. $63.75 million flowed into the stock on the tick-up and $40.54 million flowed out of the stock on the tick-down, for a money net flow of $23.21 million into the stock. Of all equities tracked, SYSCO had the 19th highest net in-flow for the day. SYSCO traded down ($0.36) for the day and closed at $67.04

A number of equities research analysts have recently issued reports on the stock. Zacks Investment Research raised shares of SYSCO from a “sell” rating to a “hold” rating in a report on Thursday, November 22nd. ValuEngine lowered shares of SYSCO from a “buy” rating to a “hold” rating in a report on Tuesday, November 6th. Jefferies Financial Group set a $68.00 target price on shares of SYSCO and gave the stock a “hold” rating in a report on Monday, August 13th. Morgan Stanley upped their target price on shares of SYSCO from $67.00 to $71.00 and gave the stock an “equal weight” rating in a report on Tuesday, August 14th. Finally, Citigroup dropped their target price on shares of SYSCO from $78.00 to $74.00 and set a “neutral” rating for the company in a report on Tuesday, November 13th. One research analyst has rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $73.54.

The firm has a market capitalization of $35.03 billion, a PE ratio of 21.27, a price-to-earnings-growth ratio of 1.91 and a beta of 0.54. The company has a current ratio of 1.30, a quick ratio of 0.80 and a debt-to-equity ratio of 3.00.

SYSCO (NYSE:SYY) last announced its quarterly earnings data on Monday, November 5th. The company reported $0.91 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.92 by ($0.01). SYSCO had a net margin of 2.52% and a return on equity of 68.81%. The firm had revenue of $15.22 billion during the quarter, compared to analysts’ expectations of $15.39 billion. During the same period in the prior year, the company posted $0.74 EPS. The company’s revenue for the quarter was up 3.9% compared to the same quarter last year. Analysts predict that SYSCO Co. will post 3.4 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 25th. Investors of record on Friday, January 4th will be issued a $0.39 dividend. The ex-dividend date of this dividend is Thursday, January 3rd. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.33%. This is a positive change from SYSCO’s previous quarterly dividend of $0.36. SYSCO’s dividend payout ratio is currently 45.86%.

In related news, Director Trian Fund Management, L.P. sold 2,115,358 shares of the company’s stock in a transaction dated 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 sale, the director now owns 4,005 shares of the company’s stock, valued at $299,614.05. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard G. Tilghman sold 5,000 shares of the company’s stock in a transaction dated Monday, September 17th. The shares were sold at an average price of $73.71, for a total transaction of $368,550.00. Following the completion of the sale, the director now directly owns 61,137 shares of the company’s stock, valued at approximately $4,506,408.27. The disclosure for this sale can be found here. Insiders sold 7,700,671 shares of company stock valued at $545,256,301 in the last three months. 7.88% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Quad Cities Investment Group LLC purchased a new position in SYSCO during the second quarter worth about $111,000. Matthew Goff Investment Advisor LLC purchased a new position in SYSCO during the third quarter worth about $120,000. Flagship Harbor Advisors LLC purchased a new position in SYSCO during the second quarter worth about $121,000. Fort L.P. purchased a new position in SYSCO during the second quarter worth about $123,000. Finally, Daiwa SB Investments Ltd. purchased a new position in SYSCO during the third quarter worth about $132,000. 79.31% of the stock is owned by hedge funds and other institutional investors.

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SYSCO Company Profile (NYSE:SYY)

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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