Sysco (NYSE:SYY) Sees Strong Trading Volume – Still a Buy?

Sysco Corporation (NYSE:SYY) saw an uptick in trading volume on Tuesday . Approximately 2,434,034 shares changed hands during trading, a decline of 39% from the previous session’s volume of 3,975,683 shares.The stock last traded at $81.5880 and had previously closed at $83.54.

Sysco News Roundup

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: The offering is intended to support Sysco’s acquisition of Jetro Restaurant Depot, a strategic expansion that could broaden Sysco’s distribution network and strengthen its position in foodservice distribution. Sysco launches $1bn share sale to help fund Jetro deal
• Neutral Sentiment: Sysco priced the public offering at $81 per share, selling 12,345,679 shares for expected gross proceeds of approximately $1 billion. The transaction is scheduled to close on September 16, subject to customary conditions. Sysco Announces Pricing of Common Stock Offering
• Neutral Sentiment: The equity raise advances the financing plan for the Jetro Restaurant Depot merger, following Sysco’s previously announced agreement with Jetro-related entities and ongoing merger disclosure process. Sysco Advances Jetro Restaurant Depot Merger Disclosure Process
• Negative Sentiment: Issuing more shares will dilute existing shareholders’ ownership and per-share exposure to future earnings. That dilution, along with uncertainty over the cost, integration and benefits of the Jetro transaction, is driving the negative near-term reaction in SYY shares. Sysco Stock Slides on $1 Billion Offering

Wall Street Analysts Forecast Growth

Several research firms have issued reports on SYY. UBS Group boosted their price target on Sysco from $90.00 to $95.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Morgan Stanley raised their price objective on Sysco from $84.00 to $88.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 16th. Wall Street Zen cut Sysco from a “buy” rating to a “hold” rating in a research report on Sunday, September 6th. Piper Sandler boosted their price objective on Sysco from $77.00 to $84.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Finally, Weiss Ratings raised shares of Sysco from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $89.50.

Sysco Stock Down 3.7%

The company has a debt-to-equity ratio of 4.62, a current ratio of 1.28 and a quick ratio of 0.77. The company’s 50-day simple moving average is $82.86 and its 200 day simple moving average is $79.93. The firm has a market cap of $38.56 billion, a P/E ratio of 22.02, a price-to-earnings-growth ratio of 2.86 and a beta of 0.63.

Sysco (NYSE:SYY) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.02. The company had revenue of $22.12 billion for the quarter, compared to analysts’ expectations of $21.95 billion. Sysco had a return on equity of 95.05% and a net margin of 2.08%.The firm’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm posted $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. Research analysts anticipate that Sysco Corporation will post 5.08 EPS for the current fiscal year.

Sysco Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 2nd will be issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 2.7%. The ex-dividend date is Friday, October 2nd. Sysco’s dividend payout ratio is presently 60.11%.

Insider Activity at Sysco

In other news, EVP Ronald Phillips sold 7,350 shares of the stock in a transaction that occurred 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 sale, the executive vice president directly owned 38,650 shares in the company, valued at approximately $3,231,526.50. This represents a 15.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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. Insiders sold a total of 14,508 shares of company stock worth $1,215,250 over the last quarter. Corporate insiders own 0.56% of the company’s stock.

Institutional Trading of Sysco

Institutional investors and hedge funds have recently made changes to their positions in the business. United Capital Financial Advisors LLC purchased a new stake in Sysco during the 2nd quarter worth about $2,633,000. Rakuten Investment Management Inc. acquired a new stake in shares of Sysco during the 2nd quarter worth about $6,523,000. Empowered Funds LLC purchased a new stake in Sysco during the second quarter worth approximately $9,370,000. Norges Bank purchased a new stake in Sysco during the fourth quarter worth approximately $542,780,000. Finally, Banque Cantonale Vaudoise boosted its holdings in Sysco by 301.9% in the first quarter. Banque Cantonale Vaudoise now owns 16,828 shares of the company’s stock valued at $1,200,000 after purchasing an additional 12,641 shares in the last quarter. 83.41% of the stock is currently owned by institutional investors.

Sysco Company Profile

Sysco Corporation (NYSE:SYY) is a global foodservice distributor that supplies restaurants, health care and educational institutions, hospitality businesses, government facilities, and other customers. Its product portfolio includes fresh and frozen foods, meat and seafood, dairy products, produce, pantry staples, beverages, and specialty items, along with nonfood products such as kitchen equipment, cleaning supplies, and disposable serving products.

In addition to distribution, Sysco provides services designed to support foodservice operators, including menu planning, culinary consulting, merchandising assistance, supply-chain solutions, and business-management resources.