Sysco (NYSE:SYY) Shares Gap Down – What’s Next?

Sysco Corporation (NYSE:SYY) gapped down prior to trading on Tuesday. The stock had previously closed at $81.74, but opened at $77.61. Sysco shares last traded at $78.0830, with a volume of 1,355,813 shares trading hands.

Key Stories Impacting Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Sysco reported first-quarter adjusted EPS of $1.19, up from $1.15 a year earlier and above the Zacks consensus estimate of $1.17. The result was in line with the broader consensus cited in other reports. Sysco Q1 Earnings Estimates
• Positive Sentiment: Management reiterated its fiscal 2027 adjusted EPS growth outlook of 9% to 11% and maintained its local case volume guidance, providing some reassurance that the company’s full-year targets remain intact. Sysco Q1 Earnings and Outlook
• Neutral Sentiment: Sysco appointed Brandon E. Sewell as executive vice president and chief financial officer, effective November 1. Sewell had served as interim CFO since March and has 12 years of experience at the company, reducing uncertainty around the finance leadership transition. Sysco Names Brandon Sewell CFO
• Negative Sentiment: First-quarter revenue rose 2.8% year over year to $21.74 billion, but fell short of the $22.02 billion analyst estimate. The sales miss suggests softer demand or volume trends and was the primary catalyst for the negative stock reaction despite the EPS performance. Sysco First Quarter 2027 Results

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on SYY. Morgan Stanley increased their target price on Sysco from $88.00 to $91.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 15th. Melius Research cut Sysco from a “hold” rating to a “sell” rating in a research note on Tuesday, July 7th. JPMorgan Chase & Co. decreased their price objective on shares of Sysco from $100.00 to $95.00 and set an “overweight” rating for the company in a research note on Tuesday, September 29th. Weiss Ratings raised Sysco from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 15th. Finally, Citigroup restated a “neutral” rating on shares of Sysco in a report on Monday, October 26th. Nine research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $90.42.

Sysco Price Performance

The firm has a 50-day moving average price of $80.49 and a 200 day moving average price of $80.54. The stock has a market capitalization of $36.98 billion, a P/E ratio of 20.56, a price-to-earnings-growth ratio of 2.31 and a beta of 0.66. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28.

Sysco (NYSE:SYY) last posted its earnings results on Tuesday, November 3rd. The company reported $1.19 EPS for the quarter, meeting analysts’ consensus estimates of $1.19. Sysco had a return on equity of 95.05% and a net margin of 2.08%. The firm had revenue of $21.74 billion during the quarter, compared to the consensus estimate of $22.02 billion. During the same period in the prior year, the company earned $1.15 EPS. The company’s quarterly revenue was up 2.8% compared to the same quarter last year. On average, analysts expect that Sysco Corporation will post 5.09 EPS for the current year.

Sysco Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Friday, October 2nd were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Friday, October 2nd. Sysco’s dividend payout ratio (DPR) is currently 60.11%.

Insider Transactions at Sysco

In other news, EVP Ronald Phillips sold 960 shares of the company’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $83.00, for a total value of $79,680.00. Following the sale, the executive vice president directly owned 49,852 shares of the company’s stock, valued at approximately $4,137,716. This represents a 1.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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. Over the last quarter, insiders sold 15,525 shares of company stock valued at $1,299,736. 0.55% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. BlackRock Inc. bought a new position in Sysco during the 2nd quarter valued at approximately $3,596,356,000. Bank of America Corp DE bought a new position in shares of Sysco during the second quarter valued at approximately $482,589,000. Dimensional Fund Advisors LP lifted its position in shares of Sysco by 1.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,667,412 shares of the company’s stock worth $332,871,000 after purchasing an additional 59,685 shares during the period. Primecap Management Co. CA purchased a new position in Sysco during the 2nd quarter worth $313,503,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Sysco in the 2nd quarter valued at about $273,323,000. 83.41% of the stock is owned by institutional investors.

About Sysco

Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.

The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.

Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.