Zacks Investment Research restated their hold rating on shares of SYSCO (NYSE:SYY) in a report released on Friday morning.
According to Zacks, “Sysco has outdone the industry in a year, gaining from its sturdy U.S. Foodservice Operations. The trend continued in fourth-quarter fiscal 2018, wherein U.S. Foodservice sales advanced 6.1% with local case volumes up 5%. Markedly, local case volumes here have been improving year over year for 17 straight quarters. The company also gained from favorable results in its International segment. Notably, with fourth-quarter results, Sysco marked the successful completion of its three-year financial plan, wherein it exceeded certain metrics. On the flip side, the company continues to bear the brunt of higher inbound freight costs and food cost inflation, which hurt its U.S. segment gross margin. Product cost inflation also served as a headwind for the International unit, which remains pressurized by adverse currency movements in the U.K. Nonetheless, we expect Sysco’s strategies for 2020 to help it sustain the solid momentum.”
Several other equities research analysts also recently weighed in on the stock. Citigroup reduced their price objective on shares of SYSCO from $78.00 to $74.00 and set a neutral rating for the company in a report on Tuesday. ValuEngine raised shares of SYSCO from a hold rating to a buy rating in a report on Monday, November 12th. Royal Bank of Canada reduced their price objective on shares of SYSCO from $67.00 to $65.00 and set a sector perform rating for the company in a report on Tuesday, November 6th. Morgan Stanley reduced their price objective on shares of SYSCO from $71.00 to $69.00 and set a hold rating for the company in a report on Tuesday, November 6th. Finally, Credit Suisse Group reduced their price objective on shares of SYSCO from $80.00 to $75.00 and set a buy rating for the company in a report on Tuesday, November 6th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus target price of $73.54.
SYY stock traded up $0.17 during trading on Friday, hitting $66.39. The company had a trading volume of 5,744,113 shares, compared to its average volume of 3,126,668. The company has a market capitalization of $34.55 billion, a P/E ratio of 20.90, a PEG ratio of 1.88 and a beta of 0.56. SYSCO has a fifty-two week low of $54.30 and a fifty-two week high of $75.98. The company has a quick ratio of 0.80, a current ratio of 1.30 and a debt-to-equity ratio of 3.00.
SYSCO (NYSE:SYY) last posted its quarterly earnings data on Monday, November 5th. The company reported $0.91 earnings per share for the quarter, missing the consensus estimate of $0.92 by ($0.01). The company had revenue of $15.22 billion during the quarter, compared to analyst estimates of $15.39 billion. SYSCO had a return on equity of 68.81% and a net margin of 2.52%. The business’s revenue for the quarter was up 3.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.74 EPS. Equities analysts anticipate that SYSCO will post 3.4 EPS for the current year.
The firm also recently declared 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. The ex-dividend date of this dividend is Thursday, January 3rd. This is a boost from SYSCO’s previous quarterly dividend of $0.36. This represents a $1.56 annualized dividend and a yield of 2.35%. SYSCO’s payout ratio is 45.86%.
In other SYSCO news, Director Richard G. Tilghman sold 5,000 shares of the business’s stock in a transaction dated Monday, October 15th. The stock was sold at an average price of $68.62, for a total transaction of $343,100.00. Following the sale, the director now owns 56,393 shares in the company, valued at approximately $3,869,687.66. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Joshua D. Frank sold 1,013,666 shares of the business’s stock in a transaction dated Monday, September 10th. The stock was sold at an average price of $75.09, for a total value of $76,116,179.94. Following the sale, the director now owns 4,005 shares in the company, valued at approximately $300,735.45. The disclosure for this sale can be found here. Over the last quarter, insiders sold 3,955,664 shares of company stock worth $296,325,762. 7.88% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of SYY. Atria Investments LLC raised its holdings in SYSCO by 4.6% during the 2nd quarter. Atria Investments LLC now owns 19,453 shares of the company’s stock worth $1,328,000 after buying an additional 861 shares during the period. Westpac Banking Corp grew its stake in SYSCO by 17.0% during the 2nd quarter. Westpac Banking Corp now owns 194,058 shares of the company’s stock valued at $13,252,000 after acquiring an additional 28,264 shares in the last quarter. World Asset Management Inc grew its stake in SYSCO by 2.1% during the 2nd quarter. World Asset Management Inc now owns 38,744 shares of the company’s stock valued at $2,646,000 after acquiring an additional 800 shares in the last quarter. Amalgamated Bank grew its stake in SYSCO by 5.6% during the 2nd quarter. Amalgamated Bank now owns 74,388 shares of the company’s stock valued at $5,080,000 after acquiring an additional 3,955 shares in the last quarter. Finally, Ballentine Partners LLC purchased a new position in SYSCO during the 2nd quarter valued at about $325,000. Hedge funds and other institutional investors own 79.76% of the company’s stock.
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. 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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