Montanova Capital LLC Increases Stake in Sysco Corporation $SYY

Montanova Capital LLC increased its stake in Sysco Corporation (NYSE:SYY) by 21.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,411,550 shares of the company’s stock after buying an additional 252,394 shares during the period. Sysco accounts for 2.0% of Montanova Capital LLC’s portfolio, making the stock its 14th largest position. Montanova Capital LLC’s holdings in Sysco were worth $117,977,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Sysco in the 2nd quarter valued at approximately $3,596,356,000. Norges Bank purchased a new stake in Sysco in the fourth quarter worth $542,780,000. Bank of America Corp DE bought a new position in Sysco in the second quarter worth $482,589,000. Wellington Management Group LLP lifted its position in Sysco by 3,977.1% during the third quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company’s stock valued at $387,935,000 after buying an additional 4,595,819 shares during the period. Finally, Primecap Management Co. CA bought a new stake in shares of Sysco during the 2nd quarter valued at $313,503,000. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

Sysco Trading Down 1.0%

Shares of SYY opened at $81.14 on Tuesday. Sysco Corporation has a 1 year low of $68.19 and a 1 year high of $91.85. The company has a 50 day simple moving average of $83.11 and a two-hundred day simple moving average of $80.50. The company has a debt-to-equity ratio of 4.62, a current ratio of 1.28 and a quick ratio of 0.77. The firm has a market cap of $38.87 billion, a P/E ratio of 22.17, a price-to-earnings-growth ratio of 2.80 and a beta of 0.64.

Sysco (NYSE:SYY) last posted its earnings results on Tuesday, August 4th. The company reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.02. The company had revenue of $22.12 billion during the quarter, compared to analysts’ expectations of $21.95 billion. Sysco had a net margin of 2.08% and a return on equity of 95.05%. Sysco’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period last year, the company posted $1.48 earnings per share. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. On average, equities analysts expect that Sysco Corporation will post 5.12 earnings per share for the current fiscal year.

Sysco Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd will be issued a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, October 2nd. Sysco’s payout ratio is 60.11%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on SYY. Melius Research downgraded Sysco from a “hold” rating to a “sell” rating in a research note on Tuesday, July 7th. Piper Sandler boosted their price objective on shares of Sysco from $77.00 to $84.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Wall Street Zen raised Sysco from a “hold” rating to a “buy” rating in a report on Saturday. Weiss Ratings raised Sysco from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 19th. Finally, UBS Group raised their target price on shares of Sysco from $90.00 to $95.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Nine research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $89.50.

Insider Buying and Selling

In related news, EVP Ronald L. Phillips sold 7,350 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $83.61, for a total transaction of $614,533.50. Following the completion of the transaction, the executive vice president directly owned 38,650 shares of the company’s stock, valued at approximately $3,231,526.50. This represents a 15.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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. Insiders sold 14,508 shares of company stock worth $1,215,250 over the last three months. 0.56% of the stock is currently owned by corporate insiders.

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.