Zacks Investment Research upgraded shares of SYSCO Co. (NYSE:SYY) from a hold rating to a buy rating in a research report released on Tuesday morning. The brokerage currently has $59.00 target price on the stock.
According to Zacks, “Sysco’s second-quarter fiscal 2017 earnings exceeded Zacks Consensus Estimate while revenues declined marginally with the same. Moreover, Sysco’s shares have been outperforming the Zacks-categorized industry over the past one year. The acquisition of London-based Brakes Group and margin improvement probably drove the earnings beat. Adjusted earnings were up 20.8% year over year on the back of expense management and improved margins. Sales also increased 10.7% on a year-over-year basis, despite unfavorable currency. 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 seven consecutive quarters, after declining consistently since the last two fiscal. However, currency headwinds and persistent food-cost deflation remain a concern.”
Several other research analysts have also weighed in on the company. Guggenheim reiterated a neutral rating on shares of SYSCO in a report on Tuesday. J P Morgan Chase & Co upgraded SYSCO from a neutral rating to an overweight rating and set a $57.00 target price on the stock in a report on Tuesday. Credit Suisse Group upgraded SYSCO from a neutral rating to an outperform rating and set a $59.00 target price on the stock in a report on Monday. Royal Bank Of Canada restated a sector perform rating and issued a $47.00 price target on shares of SYSCO in a report on Thursday, February 2nd. Finally, RBC Capital Markets assumed coverage on SYSCO in a report on Tuesday, January 24th. They issued a sector perform rating and a $47.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating and seven have assigned a buy rating to the company. SYSCO has a consensus rating of Hold and a consensus target price of $54.15.
Shares of SYSCO (NYSE:SYY) traded down 0.814% during midday trading on Tuesday, reaching $51.805. The company had a trading volume of 2,445,887 shares. The company’s 50-day moving average is $54.37 and its 200-day moving average is $52.05. SYSCO has a 52-week low of $42.05 and a 52-week high of $57.07. The firm has a market cap of $28.33 billion, a P/E ratio of 28.653 and a beta of 0.52.
SYSCO (NYSE:SYY) last released its earnings results on Monday, February 6th. The company reported $0.58 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.54 by $0.04. The company earned $13.50 billion during the quarter, compared to analysts’ expectations of $13.53 billion. SYSCO had a return on equity of 40.85% and a net margin of 1.94%. The business’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same period last year, the firm earned $0.45 EPS. Equities research analysts expect that SYSCO will post $2.46 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Friday, January 27th. Shareholders of record on Friday, January 6th were given a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 2.53%. The ex-dividend date was Wednesday, January 4th. This is an increase from SYSCO’s previous quarterly dividend of $0.31. SYSCO’s payout ratio is 71.74%.
In other news, CFO Joel T. Grade sold 16,338 shares of the company’s stock in a transaction that occurred on Monday, November 14th. The stock was sold at an average price of $53.49, for a total value of $873,919.62. Following the transaction, the chief financial officer now owns 61,563 shares of the company’s stock, valued at $3,293,004.87. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Greg D. Bertrand sold 7,382 shares of the company’s stock in a transaction that occurred on Tuesday, November 15th. The shares were sold at an average price of $53.50, for a total value of $394,937.00. Following the completion of the transaction, the senior vice president now directly owns 38,272 shares in the company, valued at approximately $2,047,552. The disclosure for this sale can be found here. In the last three months, insiders have sold 207,544 shares of company stock worth $11,215,799. Company insiders own 8.81% of the company’s stock.
Several large investors have recently modified their holdings of SYY. Parkside Financial Bank & Trust boosted its stake in shares of SYSCO by 0.6% in the third quarter. Parkside Financial Bank & Trust now owns 2,324 shares of the company’s stock valued at $114,000 after buying an additional 13 shares during the period. Johnson Financial Group Inc. boosted its stake in shares of SYSCO by 49.5% in the fourth quarter. Johnson Financial Group Inc. now owns 2,100 shares of the company’s stock valued at $116,000 after buying an additional 695 shares during the period. Tuttle Tactical Management LLC bought a new stake in shares of SYSCO during the second quarter valued at about $126,000. Crow Point Partners LLC bought a new stake in shares of SYSCO during the third quarter valued at about $137,000. Finally, Kistler Tiffany Companies LLC boosted its stake in shares of SYSCO by 0.4% in the third quarter. Kistler Tiffany Companies LLC now owns 2,878 shares of the company’s stock valued at $141,000 after buying an additional 12 shares during the period. Institutional investors and hedge funds own 77.36% of the company’s stock.
SYSCO 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.
Get a free copy of the Zacks research report on SYSCO (SYY)
For more information about research offerings from Zacks Investment Research, visit Zacks.com