Sysco (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, March 14th.
According to Zacks, “Sysco, which has surpassed the industry in a year, has been gaining from its solid brand portfolio, digital initiatives and focus on buyouts. Also, the company is on track with its cost-savings plan and key goals for 2020. Such endeavors helped Sysco retain its stellar record in second-quarter fiscal 2018, wherein both the top and bottom line grew year over year and topped estimates. Results were mainly backed by robust U.S. Foodservice Operations, as strong restaurant sales countered soft traffic. However, Sysco’s European business continued to struggle due to higher costs related to transformation efforts. Also, adverse currency caused acute food cost inflation in UK, which hit volumes and margins. Nonetheless, management remains encouraged about the second half, with favorable expectations for the International unit as well. Given these factors, and expected gains from tax reforms, Sysco remains well placed to deliver another solid year.”
Other equities research analysts have also recently issued reports about the stock. Loop Capital lifted their price objective on shares of Sysco from $68.00 to $72.00 and gave the company a “buy” rating in a research note on Wednesday, January 31st. Pivotal Research lifted their price objective on shares of Sysco from $53.00 to $60.00 and gave the company a “buy” rating in a research note on Tuesday, December 12th. Morgan Stanley upgraded shares of Sysco from an “underweight” rating to an “equal weight” rating and set a $64.00 price objective on the stock in a research note on Tuesday, January 16th. BMO Capital Markets set a $66.00 price objective on shares of Sysco and gave the company a “buy” rating in a research note on Friday, December 8th. Finally, Bank of America lifted their price objective on shares of Sysco from $68.00 to $70.00 and gave the company a “buy” rating in a research note on Tuesday, February 6th. Eight research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The company presently has an average rating of “Hold” and an average price target of $65.00.
Shares of SYY opened at $59.72 on Wednesday. Sysco has a 1 year low of $48.85 and a 1 year high of $64.27. The firm has a market cap of $31,946.65, a PE ratio of 24.08, a PEG ratio of 2.07 and a beta of 0.55. The company has a debt-to-equity ratio of 3.66, a current ratio of 1.38 and a quick ratio of 0.85.
Sysco (NYSE:SYY) last announced its quarterly earnings results on Monday, February 5th. The company reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.01. Sysco had a net margin of 2.10% and a return on equity of 61.02%. The company had revenue of $14.41 billion during the quarter, compared to the consensus estimate of $14.15 billion. During the same quarter in the previous year, the company posted $0.58 earnings per share. The company’s revenue for the quarter was up 7.1% compared to the same quarter last year. analysts anticipate that Sysco will post 2.93 earnings per share for the current year.
In other Sysco news, SVP Greg D. Bertrand sold 81,038 shares of the business’s stock in a transaction dated Wednesday, January 10th. The shares were sold at an average price of $60.76, for a total value of $4,923,868.88. Following the sale, the senior vice president now directly owns 69,721 shares in the company, valued at $4,236,247.96. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Wayne Shurts sold 7,800 shares of the business’s stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $58.98, for a total transaction of $460,044.00. Following the completion of the sale, the executive vice president now owns 55,235 shares in the company, valued at $3,257,760.30. The disclosure for this sale can be found here. Over the last quarter, insiders sold 151,370 shares of company stock worth $9,203,507. 9.60% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the business. Candriam Luxembourg S.C.A. raised its holdings in Sysco by 5.8% during the 3rd quarter. Candriam Luxembourg S.C.A. now owns 65,999 shares of the company’s stock worth $3,561,000 after buying an additional 3,645 shares during the period. Sei Investments Co. raised its holdings in Sysco by 17.1% during the 3rd quarter. Sei Investments Co. now owns 279,131 shares of the company’s stock worth $15,059,000 after buying an additional 40,736 shares during the period. CIBC Asset Management Inc raised its holdings in Sysco by 1.2% during the 3rd quarter. CIBC Asset Management Inc now owns 101,797 shares of the company’s stock worth $5,492,000 after buying an additional 1,175 shares during the period. Toronto Dominion Bank raised its holdings in Sysco by 10.8% during the 3rd quarter. Toronto Dominion Bank now owns 185,659 shares of the company’s stock worth $10,015,000 after buying an additional 18,128 shares during the period. Finally, Rhumbline Advisers raised its holdings in Sysco by 0.5% during the 3rd quarter. Rhumbline Advisers now owns 904,531 shares of the company’s stock worth $48,799,000 after buying an additional 4,267 shares during the period. Hedge funds and other institutional investors own 79.03% of the company’s stock.
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Sysco Company Profile
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 in the United States, Canada, Bahamas, Mexico, Costa Rica, Panama, the United Kingdom, France, Sweden, Ireland, Belgium, Spain, and Luxembourg.
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