Zacks Investment Research downgraded shares of Sysco (NYSE:SYY) from a buy rating to a hold rating in a report issued on Thursday, November 9th.
According to Zacks, “Sysco began fiscal 2018 on a strong note, as solid domestic results compensated for the weakness in Europe. Both top and bottom lines grew year over year and topped the Zacks Consensus Estimate in the first quarter. While this marked Sysco’s third straight quarter of sales beat, earnings have topped the consensus mark in seven out of the past eight quarters. Sysco’s robust past record has also helped it to surpass the industry in the past three months. Results in the quarter were backed by Sysco’s cost-savings and revenue-management efforts. Also, focus on buyouts have been aiding its performance. However, international results were hurt by softness in Europe, which is battling slow traffic. Moreover, weak UK currency resulted in food cost inflation, thereby leading to pricing pressure. While these hurdles are likely to persist in fiscal 2018, management expects its U.S. business to be buoyed by higher consumer demand.”
A number of other equities analysts have also recently weighed in on the company. Pivotal Research restated a hold rating and issued a $53.00 price target on shares of Sysco in a report on Sunday, November 5th. BMO Capital Markets reaffirmed an outperform rating on shares of Sysco in a research report on Tuesday, September 12th. Wells Fargo & Company reissued a buy rating on shares of Sysco in a research report on Monday, July 17th. Royal Bank Of Canada set a $50.00 price target on Sysco and gave the company a hold rating in a research report on Friday, August 11th. Finally, Jefferies Group restated a hold rating and set a $51.00 price objective on shares of Sysco in a research note on Friday, August 4th. Nine analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus target price of $56.42.
Sysco (NYSE:SYY) last posted its quarterly earnings results on Monday, November 6th. The company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.72 by $0.02. Sysco had a return on equity of 58.47% and a net margin of 2.12%. The company had revenue of $14.65 billion during the quarter, compared to analysts’ expectations of $14.43 billion. During the same quarter in the previous year, the business earned $0.67 EPS. The firm’s revenue was up 4.9% on a year-over-year basis. equities analysts expect that Sysco will post 2.77 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, January 26th. Stockholders of record on Friday, January 5th will be paid a dividend of $0.36 per share. The ex-dividend date is Thursday, January 4th. This is an increase from Sysco’s previous quarterly dividend of $0.33. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.56%. Sysco’s dividend payout ratio (DPR) is 60.00%.
In other Sysco news, Director Trian Fund Management, L.P. bought 889,561 shares of the stock in a transaction on Tuesday, September 19th. The shares were purchased at an average price of $53.68 per share, with a total value of $47,751,634.48. Following the acquisition, the director now directly owns 5,529 shares of the company’s stock, valued at approximately $296,796.72. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO William J. Delaney III sold 30,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 13th. The shares were sold at an average price of $53.16, for a total value of $1,594,800.00. Following the completion of the sale, the chief executive officer now directly owns 406,725 shares in the company, valued at approximately $21,621,501. The disclosure for this sale can be found here. Insiders have sold a total of 2,222,381 shares of company stock valued at $119,570,516 over the last ninety days. Company insiders own 9.60% of the company’s stock.
Several hedge funds have recently made changes to their positions in the business. First Personal Financial Services lifted its position in shares of Sysco by 293.2% during the 3rd quarter. First Personal Financial Services now owns 1,962 shares of the company’s stock worth $106,000 after buying an additional 1,463 shares during the period. Arcadia Investment Management Corp MI raised its position in Sysco by 10.7% in the 2nd quarter. Arcadia Investment Management Corp MI now owns 2,336 shares of the company’s stock valued at $118,000 after purchasing an additional 225 shares during the last quarter. Acrospire Investment Management LLC raised its position in Sysco by 84.6% in the 2nd quarter. Acrospire Investment Management LLC now owns 2,400 shares of the company’s stock valued at $121,000 after purchasing an additional 1,100 shares during the last quarter. Manchester Capital Management LLC raised its position in Sysco by 13.4% in the 2nd quarter. Manchester Capital Management LLC now owns 2,538 shares of the company’s stock valued at $128,000 after purchasing an additional 300 shares during the last quarter. Finally, Kistler Tiffany Companies LLC raised its position in Sysco by 0.4% in the 2nd quarter. Kistler Tiffany Companies LLC now owns 2,915 shares of the company’s stock valued at $147,000 after purchasing an additional 12 shares during the last quarter. Institutional investors own 80.28% of the company’s stock.
Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States.
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