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

Sysco Corporation (NYSE:SYY) shares saw unusually-high trading volume on Tuesday . Approximately 2,434,034 shares traded 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 Summary

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Sysco priced a public offering of 12,345,679 common shares at $81 per share, expected to generate approximately $1 billion. Management intends to use the proceeds to support strategic acquisition funding, including the planned Jetro Restaurant Depot transaction, which could expand Sysco’s foodservice distribution platform and growth opportunities. Sysco Announces Pricing of Common Stock Offering
• Positive Sentiment: Sysco was highlighted as a defensive-style stock that may offer relative stability during market volatility, supported by recurring demand for food distribution from restaurants, institutions and other commercial customers. 3 Defensive-Styled Stocks to Help Weather Volatility
• Neutral Sentiment: Executive Vice President Ronald Phillips sold a combined 1,017 shares for roughly $84,486. The transactions were made under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards, making them a limited signal of management’s outlook. SEC insider transaction filing
• Negative Sentiment: The share issuance will dilute existing Sysco shareholders. Pricing at $81—below the stock’s recent trading range—also signaled near-term selling pressure, helping explain why SYY has decreased and underperformed some competitors. Sysco Plans $1 Billion Common Stock Offering

Wall Street Analyst Weigh In

SYY has been the subject of a number of research analyst reports. Piper Sandler boosted their target price on Sysco from $77.00 to $84.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Weiss Ratings upgraded Sysco from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, September 10th. Morgan Stanley boosted their price objective on Sysco from $84.00 to $88.00 and gave the company an “equal weight” rating in a research report on Thursday, July 16th. Wall Street Zen cut Sysco from a “buy” rating to a “hold” rating in a research note on Sunday, September 6th. Finally, Melius Research downgraded shares of Sysco from a “hold” rating to a “sell” rating in a report on Tuesday, July 7th. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $89.50.

Sysco Stock Performance

The firm has a market cap of $37.71 billion, a price-to-earnings ratio of 21.48, a price-to-earnings-growth ratio of 2.74 and a beta of 0.63. The stock has a 50-day moving average of $82.67 and a 200-day moving average of $79.79. 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 released its quarterly earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share for the quarter, topping analysts’ consensus estimates of $1.51 by $0.02. Sysco had a return on equity of 95.05% and a net margin of 2.08%.The firm had revenue of $22.12 billion during the quarter, compared to the consensus estimate of $21.95 billion. During the same quarter in the prior year, the firm posted $1.48 EPS. The business’s revenue was up 4.7% on a year-over-year basis. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. As a group, analysts anticipate that Sysco Corporation will post 5.07 EPS for the current fiscal year.

Sysco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 2nd will be given a $0.55 dividend. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $2.20 dividend on an annualized basis and a yield of 2.8%. Sysco’s dividend payout ratio (DPR) is 60.11%.

Insider Transactions at Sysco

In other Sysco news, EVP Ronald Phillips sold 960 shares of the business’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $83.00, for a total transaction of $79,680.00. Following the sale, the executive vice president directly owned 49,852 shares of the company’s stock, valued at $4,137,716. The trade was a 1.89% decrease in their position. The sale was disclosed in a filing with the SEC, which is available 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 have sold 15,525 shares of company stock valued at $1,299,736. 0.56% of the stock is currently owned by insiders.

Institutional Trading of Sysco

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Lloyd Advisory Services LLC. acquired a new position in shares of Sysco during the 4th quarter worth approximately $25,000. Sunbelt Securities Inc. boosted its holdings in shares of Sysco by 87.6% in the 1st quarter. Sunbelt Securities Inc. now owns 364 shares of the company’s stock valued at $26,000 after buying an additional 170 shares during the last quarter. Bard Associates Inc. bought a new position in shares of Sysco in the fourth quarter valued at $27,000. Elyxium Wealth LLC bought a new position in shares of Sysco in the fourth quarter valued at $28,000. Finally, N.E.W. Advisory Services LLC acquired a new position in Sysco during the second quarter worth $29,000. Institutional investors and hedge funds own 83.41% of the company’s stock.

About Sysco

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.