SYSCO (SYY) Rating Lowered to Hold at Zacks Investment Research

SYSCO (NYSE:SYY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday, Zacks.com reports.

According to Zacks, “Sysco has outpaced the industry in the past three months, courtesy of strength of its U.S. Foodservice operations, wherein local case volumes rose for the 20th straight time in third-quarter fiscal 2019. The company is also gaining from its strategies for 2020, which include enhancing consumers’ experience, optimizing business, stimulating power of its people and achieving operational efficacy. These upsides along with focus on buyouts and cost-containment efforts helped the company deliver top and bottom-line growth in the third quarter. Also, these efforts should provide cushion against rising costs and international unit challenges. During the quarter, the U.S. Foodservice unit saw high supply-chain costs across warehouse and transportation. Moreover, the international unit was somewhat dragged by Brexit-related worries and currency woes.”

A number of other equities analysts have also weighed in on SYY. Buckingham Research boosted their price target on shares of SYSCO from $82.00 to $84.00 and gave the stock a “buy” rating in a research report on Tuesday, May 7th. Morgan Stanley boosted their price target on shares of SYSCO from $69.00 to $72.00 and gave the stock an “equal weight” rating in a research report on Tuesday, May 7th. Loop Capital boosted their price target on shares of SYSCO to $80.00 and gave the stock a “buy” rating in a research report on Wednesday, May 8th. Finally, Pivotal Research restated a “sell” rating and set a $58.00 price target (up from $54.00) on shares of SYSCO in a research report on Tuesday, May 7th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $74.46.

SYY stock opened at $74.93 on Friday. The stock has a market cap of $38.36 billion, a PE ratio of 23.86, a P/E/G ratio of 2.14 and a beta of 0.55. The company has a debt-to-equity ratio of 3.44, a current ratio of 1.30 and a quick ratio of 0.79. SYSCO has a 52 week low of $59.44 and a 52 week high of $75.98.

SYSCO (NYSE:SYY) last released its earnings results on Monday, May 6th. The company reported $0.79 EPS for the quarter, topping analysts’ consensus estimates of $0.70 by $0.09. The business had revenue of $14.66 billion during the quarter, compared to analysts’ expectations of $14.78 billion. SYSCO had a net margin of 2.65% and a return on equity of 73.66%. The company’s quarterly revenue was up 2.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.67 earnings per share. As a group, equities analysts anticipate that SYSCO will post 3.52 EPS for the current fiscal year.

In related news, Director Trian Fund Management, L.P. sold 707,000 shares of the business’s stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $66.30, for a total transaction of $46,874,100.00. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 7.88% of the company’s stock.

Large investors have recently bought and sold shares of the business. Gofen & Glossberg LLC IL acquired a new position in SYSCO in the 1st quarter valued at about $304,000. Manning & Napier Group LLC boosted its holdings in SYSCO by 10.8% in the 4th quarter. Manning & Napier Group LLC now owns 144,301 shares of the company’s stock valued at $9,041,000 after purchasing an additional 14,022 shares during the last quarter. Wetherby Asset Management Inc. lifted its holdings in shares of SYSCO by 5.1% in the 4th quarter. Wetherby Asset Management Inc. now owns 14,893 shares of the company’s stock worth $933,000 after acquiring an additional 717 shares during the last quarter. Calamos Advisors LLC lifted its holdings in shares of SYSCO by 1.0% in the 1st quarter. Calamos Advisors LLC now owns 99,546 shares of the company’s stock worth $6,646,000 after acquiring an additional 974 shares during the last quarter. Finally, Eastern Bank lifted its holdings in shares of SYSCO by 0.9% in the 4th quarter. Eastern Bank now owns 211,742 shares of the company’s stock worth $13,269,000 after acquiring an additional 1,867 shares during the last quarter. Institutional investors own 80.61% of the company’s stock.

About SYSCO

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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