SYSCO (NYSE:SYY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Thursday.
According to Zacks, “Sysco, which has lagged the industry in the past three months, has long been battling cost-related hurdles. This, along with a soft international performance weighed on the company’s first-quarter fiscal 2019 results, wherein top and bottom lines missed estimates. Incidentally, International sales depicted a slowdown, with several restaurant closures and Brexit related worries impacting UK’s performance. The company expects its warehouse and transportation costs associated with supply chain to persist, which remains a threat to margins. Nonetheless, Sysco’s U.S. Foodservice division has been performing well for quite some time now, wherein local case volumes have been rising for 18 straight quarters, due to solid restaurant sales. A rosy economic scenario is likely to continue aiding restaurant sales. Also, focus on enhancing assortments, making innovations, ensuring food safety and revitalizing brands bodes well.”
A number of other equities research analysts also recently weighed in on the company. Citigroup decreased their target price on SYSCO from $78.00 to $74.00 and set a “neutral” rating on the stock in a research report on Tuesday, November 13th. ValuEngine raised SYSCO from a “hold” rating to a “buy” rating in a research report on Monday, November 12th. Royal Bank of Canada decreased their target price on SYSCO from $67.00 to $65.00 and set a “sector perform” rating on the stock in a research report on Tuesday, November 6th. Morgan Stanley decreased their target price on SYSCO from $71.00 to $69.00 and set a “hold” rating on the stock in a research report on Tuesday, November 6th. Finally, Credit Suisse Group decreased their target price on SYSCO from $80.00 to $75.00 and set a “buy” rating on the stock in a research report on Tuesday, November 6th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and seven have assigned a buy rating to the company’s stock. SYSCO has an average rating of “Hold” and a consensus price target of $73.54.
SYSCO (NYSE:SYY) last posted its quarterly earnings data on Monday, November 5th. The company reported $0.91 EPS for the quarter, missing analysts’ consensus estimates of $0.92 by ($0.01). SYSCO had a return on equity of 68.81% and a net margin of 2.52%. The business had revenue of $15.22 billion during the quarter, compared to the consensus estimate of $15.39 billion. During the same quarter in the previous year, the firm posted $0.74 earnings per share. The company’s revenue for the quarter was up 3.9% on a year-over-year basis. Analysts anticipate that SYSCO will post 3.4 EPS for the current year.
In other SYSCO news, Director Joshua D. Frank sold 1,013,666 shares of SYSCO stock in a transaction that occurred on Monday, September 10th. The stock was sold at an average price of $75.09, for a total transaction of $76,116,179.94. Following the sale, the director now directly owns 4,005 shares of the company’s stock, valued at $300,735.45. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Trian Fund Management, L.P. sold 2,215,532 shares of SYSCO stock in a transaction that occurred on Tuesday, November 20th. The shares were sold at an average price of $66.45, for a total value of $147,222,101.40. Following the sale, the director now directly owns 7,055 shares in the company, valued at $468,804.75. The disclosure for this sale can be found here. Insiders have sold 6,176,196 shares of company stock worth $443,878,713 over the last ninety days. Company insiders own 7.88% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Central Bank & Trust Co. boosted its holdings in SYSCO by 950.4% during the third quarter. Central Bank & Trust Co. now owns 72,362 shares of the company’s stock valued at $5,300,000 after purchasing an additional 65,473 shares in the last quarter. Belpointe Asset Management LLC boosted its holdings in SYSCO by 240.5% during the third quarter. Belpointe Asset Management LLC now owns 12,913 shares of the company’s stock valued at $946,000 after purchasing an additional 9,121 shares in the last quarter. Vanguard Group Inc. boosted its holdings in SYSCO by 3.9% during the third quarter. Vanguard Group Inc. now owns 41,599,601 shares of the company’s stock valued at $3,047,170,000 after purchasing an additional 1,549,255 shares in the last quarter. Morgan Stanley boosted its holdings in SYSCO by 26.0% during the third quarter. Morgan Stanley now owns 4,910,163 shares of the company’s stock valued at $359,669,000 after purchasing an additional 1,013,430 shares in the last quarter. Finally, Legal & General Group Plc boosted its holdings in SYSCO by 4.3% during the third quarter. Legal & General Group Plc now owns 2,511,027 shares of the company’s stock valued at $183,937,000 after purchasing an additional 102,970 shares in the last quarter. 80.39% of the stock is currently owned by institutional investors.
SYSCO Company Profile
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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