Zacks Investment Research Downgrades Sysco Corporation (SYY) to Hold
Sysco Corporation (NYSE:SYY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.
According to Zacks, “Sysco reported fourth-quarter fiscal 2017 results, wherein both earnings and revenues exceeded expectations. Moreover, Sysco’s shares have been outperforming the industry over the last one year. Earnings rose 12.5% in the quarter. Growth in sales, expense management, and improved gross and operating margin led to the upside. The acquisition of London-based Brakes Group led to an increase of 5.7% of sales on a year-over-year basis. We note that the company’s sales have improved consistently driven by acquisitions and volume growth. Sysco’s efforts to boost sales and margins are paying up, as the company has delivered positive gross margins in the last nine quarters, after declining consistently since past several quarters. However, stiff competition remains a concern.”
A number of other research analysts also recently commented on the stock. Wells Fargo & Company reiterated a “buy” rating on shares of Sysco Corporation in a research note on Monday. Pivotal Research set a $53.00 price objective on shares of Sysco Corporation and gave the company a “hold” rating in a research note on Sunday. Royal Bank Of Canada set a $50.00 price objective on shares of Sysco Corporation and gave the company a “hold” rating in a research note on Friday, August 11th. Jefferies Group LLC reiterated a “hold” rating and set a $51.00 price objective on shares of Sysco Corporation in a research note on Friday, August 4th. Finally, BMO Capital Markets set a $60.00 price objective on shares of Sysco Corporation and gave the company a “buy” rating in a research note on Thursday, August 3rd. Ten analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Sysco Corporation has a consensus rating of “Hold” and an average price target of $56.02.
Shares of Sysco Corporation (SYY) traded down 0.66% during midday trading on Wednesday, reaching $51.25. 1,753,134 shares of the company were exchanged. The company has a market capitalization of $27.43 billion, a PE ratio of 27.02 and a beta of 0.52. The stock’s 50-day moving average price is $51.01 and its 200-day moving average price is $52.58. Sysco Corporation has a 52-week low of $47.15 and a 52-week high of $57.07.
Sysco Corporation (NYSE:SYY) last released its quarterly earnings results on Monday, August 14th. The company reported $0.72 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.71 by $0.01. Sysco Corporation had a net margin of 2.06% and a return on equity of 52.09%. The business had revenue of $14.40 billion during the quarter, compared to analyst estimates of $14.35 billion. During the same period last year, the business earned $0.64 EPS. The business’s revenue was up 5.5% on a year-over-year basis. Analysts anticipate that Sysco Corporation will post $2.76 EPS for the current year.
In other news, CEO William J. Delaney III sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, July 12th. The shares were sold at an average price of $49.92, for a total value of $1,497,600.00. Following the transaction, the chief executive officer now directly owns 406,725 shares in the company, valued at approximately $20,303,712. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Wayne Shurts sold 15,600 shares of the firm’s stock in a transaction dated Thursday, July 20th. The stock was sold at an average price of $50.87, for a total transaction of $793,572.00. Following the completion of the transaction, the insider now owns 58,776 shares in the company, valued at $2,989,935.12. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 122,400 shares of company stock worth $6,494,700. Insiders own 8.81% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Sky Investment Group LLC increased its position in Sysco Corporation by 2.0% in the first quarter. Sky Investment Group LLC now owns 62,934 shares of the company’s stock worth $3,268,000 after buying an additional 1,255 shares during the last quarter. Rockland Trust Co. increased its position in Sysco Corporation by 5.6% in the first quarter. Rockland Trust Co. now owns 4,578 shares of the company’s stock worth $238,000 after buying an additional 242 shares during the last quarter. Ledyard National Bank increased its position in Sysco Corporation by 66.3% in the first quarter. Ledyard National Bank now owns 15,056 shares of the company’s stock worth $782,000 after buying an additional 6,000 shares during the last quarter. Cypress Capital Management LLC WY increased its position in Sysco Corporation by 9.4% in the first quarter. Cypress Capital Management LLC WY now owns 6,380 shares of the company’s stock worth $331,000 after buying an additional 550 shares during the last quarter. Finally, Nisa Investment Advisors LLC increased its position in Sysco Corporation by 5.1% in the first quarter. Nisa Investment Advisors LLC now owns 198,718 shares of the company’s stock worth $10,317,000 after buying an additional 9,630 shares during the last quarter. Institutional investors own 78.49% of the company’s stock.
Sysco Corporation Company Profile
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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