Zacks Investment Research cut shares of SYSCO (NYSE:SYY) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning, Zacks.com reports. They currently have $75.00 target price 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.”
Several other research analysts also recently commented on the company. JPMorgan Chase & Co. cut their target price on SYSCO from $77.00 to $75.00 and set an overweight rating on the stock in a report on Tuesday, June 4th. ValuEngine raised SYSCO from a hold rating to a buy rating in a report on Wednesday, May 29th. Loop Capital lifted their target price on SYSCO to $80.00 and gave the stock a buy rating in a report on Wednesday, May 8th. Pivotal Research reaffirmed a sell rating and set a $58.00 target price (up from $54.00) on shares of SYSCO in a report on Tuesday, May 7th. Finally, Buckingham Research lifted their target price on SYSCO from $82.00 to $84.00 and gave the stock a buy rating in a report on Tuesday, May 7th. One investment 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. SYSCO currently has an average rating of Hold and a consensus target price of $74.21.
SYSCO (NYSE:SYY) last announced its earnings results on Monday, May 6th. The company reported $0.79 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.70 by $0.09. The firm had revenue of $14.66 billion for the quarter, compared to the consensus estimate of $14.78 billion. SYSCO had a return on equity of 73.66% and a net margin of 2.65%. The business’s quarterly revenue was up 2.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.67 EPS. On average, equities research analysts forecast that SYSCO will post 3.5 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 26th. Stockholders of record on Friday, July 5th will be paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.15%. The ex-dividend date of this dividend is Wednesday, July 3rd. SYSCO’s dividend payout ratio is 49.68%.
Several large investors have recently made changes to their positions in the company. Advisors Preferred LLC acquired a new position in SYSCO during the 1st quarter worth approximately $26,000. Sontag Advisory LLC acquired a new position in SYSCO during the 4th quarter worth approximately $25,000. Athena Capital Advisors LLC acquired a new position in SYSCO during the 4th quarter worth approximately $29,000. Valley National Advisers Inc. raised its stake in SYSCO by 60.5% during the 4th quarter. Valley National Advisers Inc. now owns 472 shares of the company’s stock worth $30,000 after buying an additional 178 shares during the period. Finally, Lenox Wealth Management Inc. raised its stake in SYSCO by 163.7% during the 1st quarter. Lenox Wealth Management Inc. now owns 480 shares of the company’s stock worth $32,000 after buying an additional 298 shares during the period. 77.65% of the stock is currently owned by institutional investors.
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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