SYSCO (SYY) Stock Price Down 9.4% Following Weak Earnings

Shares of SYSCO Co. (NYSE:SYY) fell 9.4% during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $63.19 and last traded at $64.56. 9,314,434 shares changed hands during mid-day trading, an increase of 245% from the average session volume of 2,703,079 shares. The stock had previously closed at $71.29.

The company reported $0.91 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.92 by ($0.01). The company had revenue of $15.22 billion during the quarter, compared to analysts’ expectations of $15.39 billion. SYSCO had a net margin of 2.44% and a return on equity of 68.15%. The business’s revenue for the quarter was up 3.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.74 EPS.

SYY has been the subject of several recent research reports. Pivotal Research raised their target price on shares of SYSCO from $58.00 to $62.00 and gave the company a “sell” rating in a report on Saturday, August 18th. Loop Capital raised their target price on shares of SYSCO to $80.00 and gave the company a “buy” rating in a report on Tuesday, August 14th. Argus raised their target price on shares of SYSCO from $67.00 to $86.00 and gave the company a “buy” rating in a report on Thursday, August 16th. BMO Capital Markets raised their target price on shares of SYSCO from $74.00 to $81.00 and gave the company an “outperform” rating in a report on Tuesday, August 14th. Finally, Morgan Stanley raised their target price on shares of SYSCO from $67.00 to $71.00 and gave the company an “equal weight” rating in a report on Tuesday, August 14th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $73.15.

In other news, Director Richard G. Tilghman sold 5,000 shares of SYSCO stock in a transaction dated Monday, October 15th. The shares were sold at an average price of $68.62, for a total transaction of $343,100.00. Following the completion of the sale, the director now directly owns 56,393 shares in the company, valued at $3,869,687.66. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Brian R. Todd sold 9,147 shares of SYSCO stock in a transaction dated Wednesday, August 15th. The stock was sold at an average price of $73.82, for a total transaction of $675,231.54. Following the sale, the senior vice president now owns 11,747 shares of the company’s stock, valued at $867,163.54. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 3,969,811 shares of company stock valued at $297,370,093. Insiders own 7.88% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the company. IFM Investors Pty Ltd boosted its position in shares of SYSCO by 47.2% in the second quarter. IFM Investors Pty Ltd now owns 23,005 shares of the company’s stock worth $1,571,000 after acquiring an additional 7,381 shares during the last quarter. Livforsakringsbolaget Skandia Omsesidigt boosted its position in shares of SYSCO by 17.1% in the second quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 8,924 shares of the company’s stock worth $609,000 after acquiring an additional 1,300 shares during the last quarter. Capital Investment Services of America Inc. acquired a new stake in shares of SYSCO in the second quarter worth approximately $220,000. State of Alaska Department of Revenue boosted its position in shares of SYSCO by 27.8% in the second quarter. State of Alaska Department of Revenue now owns 280,091 shares of the company’s stock worth $19,125,000 after acquiring an additional 60,870 shares during the last quarter. Finally, Raymond James Trust N.A. boosted its position in shares of SYSCO by 1.0% in the second quarter. Raymond James Trust N.A. now owns 89,538 shares of the company’s stock worth $6,115,000 after acquiring an additional 903 shares during the last quarter. Institutional investors and hedge funds own 80.11% of the company’s stock.

The company has a current ratio of 1.21, a quick ratio of 0.74 and a debt-to-equity ratio of 3.01. The stock has a market capitalization of $37.12 billion, a PE ratio of 20.53, a P/E/G ratio of 1.93 and a beta of 0.56.

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About SYSCO (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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