SYSCO (SYY) Lowered to Sell at Pivotal Research

SYSCO (NYSE:SYY) was downgraded by analysts at Pivotal Research from a “hold” rating to a “sell” rating in a research report issued on Friday, The Fly reports. They presently have a $58.00 target price on the stock. Pivotal Research’s price objective suggests a potential downside of 17.18% from the company’s previous close.

Other equities analysts also recently issued reports about the stock. ValuEngine upgraded shares of SYSCO from a “hold” rating to a “buy” rating in a research note on Tuesday, June 26th. Wells Fargo & Co upped their price target on shares of SYSCO from $71.00 to $80.00 and gave the company a “$70.32” rating in a research note on Wednesday, July 18th. They noted that the move was a valuation call. Zacks Investment Research upgraded shares of SYSCO from a “sell” rating to a “hold” rating in a research note on Wednesday. Morgan Stanley reiterated a “hold” rating and set a $61.00 price objective (down from $64.00) on shares of SYSCO in a research note on Tuesday, May 8th. Finally, Credit Suisse Group began coverage on shares of SYSCO in a research note on Tuesday, April 17th. They set an “outperform” rating and a $68.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and four have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $68.82.

SYSCO opened at $70.03 on Friday, Marketbeat Ratings reports. The company has a debt-to-equity ratio of 3.76, a quick ratio of 0.90 and a current ratio of 1.44. SYSCO has a 52 week low of $50.05 and a 52 week high of $71.97. The stock has a market capitalization of $36.23 billion, a P/E ratio of 28.24, a price-to-earnings-growth ratio of 1.92 and a beta of 0.56.

SYSCO (NYSE:SYY) last released its quarterly earnings results on Monday, May 7th. The company reported $0.67 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.63 by $0.04. SYSCO had a net margin of 2.23% and a return on equity of 64.33%. The business had revenue of $14.35 billion for the quarter, compared to the consensus estimate of $14.32 billion. During the same period in the prior year, the company posted $0.51 earnings per share. SYSCO’s revenue was up 6.1% compared to the same quarter last year. analysts predict that SYSCO will post 3.01 EPS for the current year.

In other SYSCO news, CFO Joel T. Grade sold 17,438 shares of the stock in a transaction dated Friday, June 29th. The shares were sold at an average price of $68.36, for a total transaction of $1,192,061.68. Following the sale, the chief financial officer now directly owns 56,867 shares in the company, valued at $3,887,428.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Richard G. Tilghman sold 5,000 shares of the stock in a transaction dated Tuesday, May 15th. The stock was sold at an average price of $62.65, for a total transaction of $313,250.00. Following the sale, the director now owns 80,864 shares in the company, valued at $5,066,129.60. The disclosure for this sale can be found here. Insiders have sold 3,124,634 shares of company stock worth $206,697,455 over the last quarter. Corporate insiders own 9.60% of the company’s stock.

A number of institutional investors have recently made changes to their positions in SYY. Point72 Asset Management L.P. acquired a new stake in shares of SYSCO in the 1st quarter valued at approximately $50,934,000. Unigestion Holding SA acquired a new stake in shares of SYSCO in the 2nd quarter valued at approximately $55,998,000. Allen Investment Management LLC boosted its stake in shares of SYSCO by 166.6% in the 1st quarter. Allen Investment Management LLC now owns 1,032,414 shares of the company’s stock valued at $61,904,000 after purchasing an additional 645,151 shares in the last quarter. Bank of Montreal Can boosted its stake in shares of SYSCO by 14.9% in the 2nd quarter. Bank of Montreal Can now owns 4,552,341 shares of the company’s stock valued at $310,878,000 after purchasing an additional 590,410 shares in the last quarter. Finally, Sabal Trust CO acquired a new stake in shares of SYSCO in the 2nd quarter valued at approximately $24,275,000. Hedge funds and other institutional investors own 79.90% of the company’s stock.

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 in the United States, Canada, Bahamas, Mexico, Costa Rica, Panama, the United Kingdom, France, Sweden, Ireland, Belgium, Spain, and Luxembourg.

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