Investors Buy SYSCO (SYY) on Weakness Following Weak Earnings
Investors purchased shares of SYSCO Co. (NYSE:SYY) on weakness during trading hours on Tuesday following a weaker than expected earnings announcement. $68.20 million flowed into the stock on the tick-up and $38.23 million flowed out of the stock on the tick-down, for a money net flow of $29.97 million into the stock. Of all stocks tracked, SYSCO had the 19th highest net in-flow for the day. SYSCO traded down ($0.11) for the day and closed at $64.45The company reported $0.91 EPS for the quarter, missing the Zacks’ consensus estimate of $0.92 by ($0.01). The business had revenue of $15.22 billion during the quarter, compared to analysts’ expectations of $15.39 billion. SYSCO had a net margin of 2.44% and a return on equity of 68.15%. The firm’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.74 earnings per share.
A number of brokerages have recently issued reports on SYY. ValuEngine lowered SYSCO from a “buy” rating to a “hold” rating in a research note on Tuesday. Royal Bank of Canada lowered their price target on SYSCO from $67.00 to $65.00 and set a “sector perform” rating on the stock in a research note on Tuesday. Loop Capital lowered their price target on SYSCO to $75.00 and set a “buy” rating on the stock in a research note on Tuesday. They noted that the move was a valuation call. Jefferies Financial Group set a $68.00 price target on SYSCO and gave the stock a “hold” rating in a research note on Monday, August 13th. Finally, BMO Capital Markets lowered their price objective on SYSCO from $81.00 to $79.00 and set a “buy” rating on the stock in a research note on Tuesday. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company. The company has an average rating of “Hold” and an average target price of $73.15.
In other news, SVP Brian R. Todd sold 9,147 shares of the company’s stock in a transaction on Wednesday, August 15th. The stock was sold at an average price of $73.82, for a total value of $675,231.54. Following the transaction, the senior vice president now owns 11,747 shares of the company’s stock, valued at approximately $867,163.54. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Richard G. Tilghman sold 5,000 shares of the company’s stock in a transaction on Wednesday, August 15th. The shares were sold at an average price of $73.82, for a total value of $369,100.00. Following the completion of the transaction, the director now directly owns 66,137 shares in the company, valued at approximately $4,882,233.34. The disclosure for this sale can be found here. In the last ninety days, insiders sold 3,969,811 shares of company stock worth $297,370,093. Corporate insiders own 7.88% of the company’s stock.
The company has a quick ratio of 0.74, a current ratio of 1.21 and a debt-to-equity ratio of 3.01. The firm has a market capitalization of $37.12 billion, a price-to-earnings ratio of 21.16, a PEG ratio of 1.93 and a beta of 0.56.
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SYSCO Company Profile (NYSE:SYY)
Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. It operates through three segments: U.S. Foodservice Operations, International Foodservice Operations, and SYGMA. The company distributes a line of frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce.
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