SYSCO (SYY) Downgraded by Zacks Investment Research
SYSCO (NYSE:SYY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued 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.”
Other equities analysts also recently issued reports about the stock. Bank of America lifted their price target on shares of SYSCO from $68.00 to $70.00 and gave the company a “buy” rating in a report on Tuesday, February 6th. Loop Capital cut their price target on shares of SYSCO from $72.00 to $70.00 and set a “buy” rating for the company in a report on Tuesday, February 6th. Pivotal Research cut their price target on shares of SYSCO from $68.00 to $61.00 and set a “buy” rating for the company in a report on Tuesday, February 6th. BMO Capital Markets set a $66.00 price target on shares of SYSCO and gave the company a “buy” rating in a report on Friday, December 8th. Finally, Morgan Stanley raised shares of SYSCO from an “underweight” rating to an “equal weight” rating and set a $64.00 price target for the company in a report on Tuesday, January 16th. Seven research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $65.20.
SYSCO (NYSE:SYY) last announced its quarterly earnings results on Monday, February 5th. The company reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.01. SYSCO had a net margin of 2.10% and a return on equity of 61.02%. The firm had revenue of $14.41 billion during the quarter, compared to the consensus estimate of $14.15 billion. During the same period last year, the firm posted $0.58 EPS. The firm’s quarterly revenue was up 7.1% on a year-over-year basis. equities research analysts predict that SYSCO will post 2.95 earnings per share for the current fiscal year.
In other SYSCO news, EVP Wayne Shurts sold 7,800 shares of the business’s stock in a transaction dated Thursday, February 22nd. The shares were sold at an average price of $58.98, for a total value of $460,044.00. Following the completion of the transaction, the executive vice president now directly owns 55,235 shares of the company’s stock, valued at $3,257,760.30. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Greg D. Bertrand sold 81,038 shares of the business’s stock in a transaction dated Wednesday, January 10th. The stock was sold at an average price of $60.76, for a total transaction of $4,923,868.88. Following the completion of the transaction, the senior vice president now directly owns 69,721 shares of the company’s stock, valued at $4,236,247.96. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 144,429 shares of company stock valued at $8,784,264. Insiders own 9.60% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the business. Summit X LLC grew its position in shares of SYSCO by 9.5% during the 4th quarter. Summit X LLC now owns 9,077 shares of the company’s stock worth $551,000 after buying an additional 790 shares during the period. Fiduciary Trust Co. grew its position in shares of SYSCO by 1.3% during the 4th quarter. Fiduciary Trust Co. now owns 62,376 shares of the company’s stock worth $3,788,000 after buying an additional 824 shares during the period. Redmond Asset Management LLC grew its position in shares of SYSCO by 13.8% during the 4th quarter. Redmond Asset Management LLC now owns 7,123 shares of the company’s stock worth $433,000 after buying an additional 863 shares during the period. Benjamin F. Edwards & Company Inc. grew its position in shares of SYSCO by 7.6% during the 4th quarter. Benjamin F. Edwards & Company Inc. now owns 12,315 shares of the company’s stock worth $748,000 after buying an additional 866 shares during the period. Finally, Cognios Capital LLC grew its position in shares of SYSCO by 2.3% during the 4th quarter. Cognios Capital LLC now owns 38,935 shares of the company’s stock worth $2,362,000 after buying an additional 867 shares during the period. 79.05% of the stock is owned by institutional investors.
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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