SYSCO (NYSE:SYY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Sysco, which has surpassed the industry in a year, has been gaining from its solid brand portfolio, digital initiatives and focus on buyouts. Also, the company is on track with its cost-savings plan and key goals for 2020. Such endeavors helped Sysco retain its stellar record in second-quarter fiscal 2018, wherein both the top and bottom line grew year over year and topped estimates. Results were mainly backed by robust U.S. Foodservice Operations, as strong restaurant sales countered soft traffic. However, Sysco’s European business continued to struggle due to higher costs related to transformation efforts. Also, adverse currency caused acute food cost inflation in UK, which hit volumes and margins. Nonetheless, management remains encouraged about the second half, with favorable expectations for the International unit as well. Given these factors, and expected gains from tax reforms, Sysco remains well placed to deliver another solid year.”
A number of other brokerages have also commented on SYY. Loop Capital increased their price objective on SYSCO from $68.00 to $72.00 and gave the company a “buy” rating in a research report on Wednesday, January 31st. Pivotal Research increased their price objective on SYSCO from $53.00 to $60.00 and gave the company a “buy” rating in a research report on Tuesday, December 12th. Morgan Stanley upgraded SYSCO from an “underweight” rating to an “equal weight” rating and set a $64.00 price objective on the stock in a research report on Tuesday, January 16th. BMO Capital Markets set a $66.00 price objective on SYSCO and gave the company a “buy” rating in a research report on Friday, December 8th. Finally, Bank of America increased their price objective on SYSCO from $68.00 to $70.00 and gave the company a “buy” rating in a research report on Tuesday, February 6th. Seven equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. SYSCO currently has an average rating of “Hold” and a consensus target price of $65.20.
SYSCO (NYSE:SYY) last announced its quarterly earnings data on Monday, February 5th. The company reported $0.66 EPS for the quarter, beating the Zacks’ consensus estimate of $0.65 by $0.01. The firm had revenue of $14.41 billion for the quarter, compared to analyst estimates of $14.15 billion. SYSCO had a return on equity of 61.02% and a net margin of 2.10%. The business’s quarterly revenue was up 7.1% compared to the same quarter last year. During the same period last year, the company earned $0.58 EPS. equities analysts forecast that SYSCO will post 2.95 earnings per share for the current fiscal year.
In other news, SVP Greg D. Bertrand sold 81,038 shares of the firm’s stock in a transaction on Wednesday, January 10th. The stock was sold at an average price of $60.76, for a total value of $4,923,868.88. Following the transaction, the senior vice president now directly owns 69,721 shares in the company, valued at approximately $4,236,247.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul T. Moskowitz sold 15,334 shares of the firm’s stock in a transaction on Friday, March 9th. The stock was sold at an average price of $60.69, for a total value of $930,620.46. Following the completion of the transaction, the insider now owns 58,329 shares in the company, valued at $3,539,987.01. The disclosure for this sale can be found here. Insiders sold a total of 144,429 shares of company stock worth $8,784,264 over the last 90 days. 9.60% of the stock is owned by corporate insiders.
Several large investors have recently bought and sold shares of the company. Miller Howard Investments Inc. NY bought a new position in SYSCO during the fourth quarter worth about $60,798,000. Millennium Management LLC lifted its holdings in SYSCO by 701.8% during the fourth quarter. Millennium Management LLC now owns 1,057,931 shares of the company’s stock worth $64,248,000 after acquiring an additional 925,982 shares in the last quarter. Element Capital Management LLC bought a new position in SYSCO during the fourth quarter worth about $45,129,000. Amundi Pioneer Asset Management Inc. bought a new position in SYSCO during the fourth quarter worth about $31,092,000. Finally, American Century Companies Inc. lifted its holdings in SYSCO by 7.5% during the fourth quarter. American Century Companies Inc. now owns 6,578,176 shares of the company’s stock worth $399,493,000 after acquiring an additional 457,259 shares in the last quarter. Institutional investors and hedge funds own 79.05% of the company’s stock.
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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.
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