Traders Purchase High Volume of Call Options on Sysco (NYSE:SYY)

Sysco Corporation (NYSE:SYY) was the recipient of some unusual options trading on Monday. Stock traders acquired 4,068 call options on the company. This is an increase of approximately 111% compared to the average daily volume of 1,932 call options.

Sysco Stock Down 13.3%

SYY traded down $10.92 during trading on Monday, reaching $70.89. The stock had a trading volume of 10,317,757 shares, compared to its average volume of 3,913,974. The company has a current ratio of 1.30, a quick ratio of 0.75 and a debt-to-equity ratio of 5.45. The company has a market capitalization of $33.95 billion, a price-to-earnings ratio of 19.06, a P/E/G ratio of 2.54 and a beta of 0.58. The stock’s 50 day moving average is $84.92 and its two-hundred day moving average is $79.63. Sysco has a one year low of $67.12 and a one year high of $91.85.

Sysco (NYSE:SYY) last released its earnings results on Tuesday, January 27th. The company reported $0.99 earnings per share for the quarter, topping analysts’ consensus estimates of $0.98 by $0.01. The firm had revenue of $20.76 billion for the quarter, compared to the consensus estimate of $20.80 billion. Sysco had a net margin of 2.17% and a return on equity of 109.21%. The company’s revenue was up 3.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.93 EPS. Sysco has set its FY 2026 guidance at 4.600-4.600 EPS. As a group, analysts expect that Sysco will post 4.58 earnings per share for the current year.

Sysco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Thursday, April 2nd will be paid a dividend of $0.54 per share. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.0%. Sysco’s dividend payout ratio (DPR) is currently 58.06%.

Insider Activity at Sysco

In related news, EVP Ronald L. Phillips sold 5,601 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $81.00, for a total value of $453,681.00. Following the sale, the executive vice president directly owned 35,965 shares of the company’s stock, valued at $2,913,165. This trade represents a 13.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Sheila Talton sold 2,801 shares of the business’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $82.99, for a total value of $232,454.99. Following the transaction, the director owned 12,868 shares in the company, valued at approximately $1,067,915.32. This represents a 17.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.56% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Jackson Grant Investment Advisers Inc. bought a new position in shares of Sysco during the third quarter valued at $25,000. Harbor Capital Advisors Inc. boosted its stake in Sysco by 75.0% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 315 shares of the company’s stock worth $26,000 after purchasing an additional 135 shares in the last quarter. Lloyd Advisory Services LLC. purchased a new stake in Sysco during the 4th quarter valued at about $25,000. Motiv8 Investments LLC bought a new stake in Sysco during the 4th quarter valued at about $25,000. Finally, Peterson Wealth Services increased its stake in Sysco by 875.7% during the 3rd quarter. Peterson Wealth Services now owns 361 shares of the company’s stock valued at $30,000 after purchasing an additional 324 shares in the last quarter. Institutional investors own 83.41% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on SYY shares. Barclays boosted their target price on Sysco from $88.00 to $92.00 and gave the company an “overweight” rating in a research note on Wednesday, January 28th. Argus upgraded shares of Sysco to a “hold” rating in a report on Thursday, January 29th. Wells Fargo & Company upped their price objective on shares of Sysco from $92.00 to $100.00 and gave the stock an “overweight” rating in a report on Thursday, February 19th. JPMorgan Chase & Co. lifted their target price on shares of Sysco from $85.00 to $87.00 and gave the company an “overweight” rating in a research note on Wednesday, January 28th. Finally, Truist Financial boosted their price target on shares of Sysco from $90.00 to $94.00 and gave the company a “buy” rating in a research report on Wednesday, January 28th. Ten investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $90.31.

Key Sysco News

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Deal expands Sysco into the higher‑margin, fast‑growing “cash & carry” channel and is expected to materially boost scale and cash generation (company/analyst estimates suggest ~20% revenue, ~45% EBITDA and ~55% free‑cash‑flow uplift). Sysco Expands Foodservice Reach With $29 Billion Jetro Deal
• Positive Sentiment: Management frames the transaction as creating a multi‑channel U.S. foodservice platform with complementary footprints, which could drive long‑term market share gains. Sysco to Acquire Jetro Restaurant Depot
• Neutral Sentiment: Transaction structure: roughly $21.6B cash to Jetro holders plus ~91.5M Sysco shares; expected close around Q3 2027. Sysco shares fall premarket as company announces $29B acquisition of Jetro Restaurant Depot
• Neutral Sentiment: Company says it will maintain near‑term outlook but will pause share repurchases to prioritize rapid de‑leveraging after close. Sysco To Buy Cash & Carry Firm Jetro Restaurant Depot; Backs Outlook, Pauses Buyback; Stock Down
• Negative Sentiment: Financing and balance‑sheet impact: the deal is largely debt‑financed and will significantly increase leverage, raising investor concern given Sysco’s already elevated leverage ratios. Sysco (SYY) Shares Sink 5% Following $29B Jetro Restaurant Depot Acquisition
• Negative Sentiment: Integration and execution risk: analysts and commentators warn the size and complexity of the transaction create material integration, cultural and cost‑synergy execution risks. Why Jetro deal makes Sysco stock a great long-term pick
• Negative Sentiment: Immediate market reaction: shares moved lower in premarket and intraday trading as investors digested the price tag, debt load and the pause of buybacks. Major outlets reported the drop. Sysco goes all in on the ‘cash and carry’ food-service business with a $29 billion buyout

About Sysco

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.