Zacks Investment Research downgraded shares of SYSCO (NYSE:SYY) from a buy rating to a hold rating in a report issued on Tuesday morning, Zacks.com reports. Zacks Investment Research currently has $75.00 price objective on the stock.
According to Zacks, “Sysco has outpaced the industry in the past six 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 brokerages have also recently commented on SYY. ValuEngine raised shares of SYSCO from a hold rating to a buy rating in a research note on Wednesday, May 29th. Pivotal Research reissued a sell rating and issued a $58.00 price objective (up from $54.00) on shares of SYSCO in a research note on Tuesday, May 7th. Loop Capital increased their price objective on shares of SYSCO to $80.00 and gave the company a buy rating in a research note on Wednesday, May 8th. Morgan Stanley increased their price objective on shares of SYSCO from $69.00 to $72.00 and gave the company an equal weight rating in a research note on Tuesday, May 7th. Finally, Buckingham Research increased their price objective on shares of SYSCO from $82.00 to $84.00 and gave the company a buy rating in a research note on Tuesday, May 7th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the company. The stock has a consensus rating of Hold and a consensus price target of $74.21.
SYSCO (NYSE:SYY) last announced its quarterly earnings results on Monday, May 6th. The company reported $0.79 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.70 by $0.09. The business had revenue of $14.66 billion during the quarter, compared to the consensus estimate of $14.78 billion. SYSCO had a net margin of 2.65% and a return on equity of 73.66%. The business’s revenue was up 2.1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.67 EPS. On average, equities research analysts forecast that SYSCO will post 3.5 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, July 26th. Shareholders of record on Friday, July 5th will be paid a dividend of $0.39 per share. The ex-dividend date of this dividend is Wednesday, July 3rd. This represents a $1.56 annualized dividend and a dividend yield of 2.14%. SYSCO’s dividend payout ratio is currently 49.68%.
Several institutional investors have recently added to or reduced their stakes in SYY. Vanguard Group Inc boosted its stake in shares of SYSCO by 3.9% during the 3rd quarter. Vanguard Group Inc now owns 41,599,601 shares of the company’s stock worth $3,047,170,000 after purchasing an additional 1,549,255 shares during the last quarter. Dupont Capital Management Corp boosted its stake in shares of SYSCO by 40.1% during the 4th quarter. Dupont Capital Management Corp now owns 6,078 shares of the company’s stock worth $381,000 after purchasing an additional 1,741 shares during the last quarter. Financial Gravity Companies Inc. acquired a new stake in shares of SYSCO during the 4th quarter worth about $51,000. Capital Investment Advisory Services LLC acquired a new stake in shares of SYSCO during the 4th quarter worth about $123,000. Finally, Savant Capital LLC boosted its stake in shares of SYSCO by 25.3% during the 4th quarter. Savant Capital LLC now owns 6,718 shares of the company’s stock worth $421,000 after purchasing an additional 1,357 shares during the last quarter. 77.65% 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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