Rakuten Investment Management Inc. Acquires New Stake in Sysco Corporation $SYY

Rakuten Investment Management Inc. acquired a new stake in Sysco Corporation (NYSE:SYY) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 78,212 shares of the company’s stock, valued at approximately $6,523,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of SYY. BlackRock Inc. bought a new stake in shares of Sysco during the second quarter worth $3,596,356,000. State Street Corp grew its holdings in shares of Sysco by 0.9% in the third quarter. State Street Corp now owns 26,669,576 shares of the company’s stock worth $2,195,973,000 after purchasing an additional 246,542 shares during the last quarter. Geode Capital Management LLC increased its stake in Sysco by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 12,728,692 shares of the company’s stock worth $934,391,000 after buying an additional 131,659 shares during the period. Norges Bank purchased a new position in Sysco in the 4th quarter worth about $542,780,000. Finally, Morgan Stanley lifted its holdings in Sysco by 9.0% during the 4th quarter. Morgan Stanley now owns 6,058,405 shares of the company’s stock valued at $446,444,000 after buying an additional 500,881 shares in the last quarter. Hedge funds and other institutional investors own 83.41% of the company’s stock.

Insider Activity

In other news, EVP Ronald L. Phillips sold 7,350 shares of the business’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $83.61, for a total value of $614,533.50. Following the completion of the transaction, the executive vice president directly owned 38,650 shares of the company’s stock, valued at approximately $3,231,526.50. The trade was a 15.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 14,508 shares of company stock valued at $1,215,250. Company insiders own 0.56% of the company’s stock.

Sysco Trading Down 0.6%

NYSE SYY opened at $81.95 on Friday. Sysco Corporation has a one year low of $68.19 and a one year high of $91.85. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28. The company has a market capitalization of $39.26 billion, a price-to-earnings ratio of 22.39, a price-to-earnings-growth ratio of 2.80 and a beta of 0.64. The company’s 50-day simple moving average is $83.05 and its two-hundred day simple moving average is $80.59.

Sysco (NYSE:SYY) last released its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.51 by $0.02. The firm had revenue of $22.12 billion for the quarter, compared to the consensus estimate of $21.95 billion. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The company’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period last year, the firm earned $1.48 earnings per share. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. Equities analysts forecast that Sysco Corporation will post 5.12 EPS for the current fiscal year.

Sysco Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd will be issued a $0.55 dividend. The ex-dividend date is Friday, October 2nd. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.7%. Sysco’s dividend payout ratio (DPR) is currently 60.11%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on SYY shares. UBS Group boosted their price objective on shares of Sysco from $90.00 to $95.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Piper Sandler raised their target price on shares of Sysco from $77.00 to $84.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Morgan Stanley lifted their price target on shares of Sysco from $84.00 to $88.00 and gave the company an “equal weight” rating in a research note on Thursday, July 16th. Wall Street Zen upgraded Sysco from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Weiss Ratings raised Sysco from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 19th. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Sysco currently has an average rating of “Moderate Buy” and a consensus target price of $89.50.

Sysco Company Profile

Sysco Corporation (NYSE: SYY) is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.