Sysco Corporation (SYY) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of Sysco Corporation (NYSE:SYY) from a buy rating to a hold rating in a research note released on Thursday morning.
According to Zacks, “Sysco began fiscal 2018 on a strong note, as solid domestic results compensated for the weakness in Europe. Both top and bottom lines grew year over year and topped the Zacks Consensus Estimate in the first quarter. While this marked Sysco’s third straight quarter of sales beat, earnings have topped the consensus mark in seven out of the past eight quarters. Sysco’s robust past record has also helped it to surpass the industry in the past three months. Results in the quarter were backed by Sysco’s cost-savings and revenue-management efforts. Also, focus on buyouts have been aiding its performance. However, international results were hurt by softness in Europe, which is battling slow traffic. Moreover, weak UK currency resulted in food cost inflation, thereby leading to pricing pressure. While these hurdles are likely to persist in fiscal 2018, management expects its U.S. business to be buoyed by higher consumer demand.”
Several other research firms have also recently weighed in on SYY. Jefferies Group LLC reiterated a hold rating and issued a $51.00 target price on shares of Sysco Corporation in a research note on Friday, August 4th. Pivotal Research reiterated a hold rating and issued a $53.00 target price on shares of Sysco Corporation in a research note on Sunday, November 5th. Royal Bank Of Canada set a $50.00 target price on shares of Sysco Corporation and gave the company a hold rating in a research note on Friday, August 11th. BMO Capital Markets reiterated an outperform rating on shares of Sysco Corporation in a research note on Tuesday, September 12th. Finally, Wells Fargo & Company reiterated a buy rating on shares of Sysco Corporation in a research note on Monday, July 17th. Nine analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $56.42.
Sysco Corporation (NYSE:SYY) traded up $0.17 during mid-day trading on Thursday, reaching $54.19. 1,717,800 shares of the company’s stock were exchanged, compared to its average volume of 2,435,198. The company has a debt-to-equity ratio of 3.77, a current ratio of 1.40 and a quick ratio of 0.83. Sysco Corporation has a one year low of $48.85 and a one year high of $57.23. The company has a market capitalization of $28,236.03, a PE ratio of 21.25, a price-to-earnings-growth ratio of 2.51 and a beta of 0.53.
Sysco Corporation (NYSE:SYY) last released its earnings results on Monday, November 6th. The company reported $0.74 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.72 by $0.02. Sysco Corporation had a net margin of 2.12% and a return on equity of 58.47%. The business had revenue of $14.65 billion during the quarter, compared to analysts’ expectations of $14.43 billion. During the same quarter last year, the company earned $0.67 earnings per share. The firm’s revenue was up 4.9% on a year-over-year basis. equities analysts forecast that Sysco Corporation will post 2.77 earnings per share for the current fiscal year.
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In other news, EVP Wayne Shurts sold 7,800 shares of the firm’s stock in a transaction that occurred on Tuesday, October 24th. The shares were sold at an average price of $54.86, for a total transaction of $427,908.00. Following the completion of the sale, the executive vice president now owns 58,776 shares of the company’s stock, valued at $3,224,451.36. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO William J. Delaney III sold 30,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 23rd. The stock was sold at an average price of $51.31, for a total transaction of $1,539,300.00. Following the sale, the chief executive officer now directly owns 406,725 shares of the company’s stock, valued at approximately $20,869,059.75. The disclosure for this sale can be found here. Insiders sold 2,125,781 shares of company stock valued at $114,211,628 in the last three months. Company insiders own 9.60% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of SYY. BlackRock Inc. increased its holdings in shares of Sysco Corporation by 2,088.2% during the first quarter. BlackRock Inc. now owns 32,207,618 shares of the company’s stock worth $1,672,219,000 after buying an additional 30,735,711 shares in the last quarter. Janus Henderson Group PLC increased its holdings in shares of Sysco Corporation by 9,055.0% during the second quarter. Janus Henderson Group PLC now owns 5,707,603 shares of the company’s stock worth $287,264,000 after buying an additional 5,645,259 shares in the last quarter. American Century Companies Inc. increased its holdings in shares of Sysco Corporation by 47.6% during the second quarter. American Century Companies Inc. now owns 5,054,930 shares of the company’s stock worth $254,415,000 after buying an additional 1,629,990 shares in the last quarter. Capital World Investors increased its holdings in shares of Sysco Corporation by 11.7% during the second quarter. Capital World Investors now owns 13,767,000 shares of the company’s stock worth $692,893,000 after buying an additional 1,445,000 shares in the last quarter. Finally, Nordea Investment Management AB increased its holdings in shares of Sysco Corporation by 252.7% during the second quarter. Nordea Investment Management AB now owns 1,928,089 shares of the company’s stock worth $97,041,000 after buying an additional 1,381,441 shares in the last quarter. 80.07% of the stock is owned by institutional investors.
About Sysco Corporation
Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States.
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