Traders Buy SYSCO (SYY) on Weakness on Disappointing Earnings

Traders bought shares of SYSCO Co. (NYSE:SYY) on weakness during trading on Tuesday after the company announced weaker than expected quarterly earnings. $68.20 million flowed into the stock on the tick-up and $38.23 million flowed out of the stock on the tick-down, for a money net flow of $29.97 million into the stock. Of all companies tracked, SYSCO had the 19th highest net in-flow for the day. SYSCO traded down ($0.11) for the day and closed at $64.45The company reported $0.91 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.92 by ($0.01). The company had revenue of $15.22 billion for the quarter, compared to analysts’ expectations of $15.39 billion. SYSCO had a net margin of 2.44% and a return on equity of 68.15%. The firm’s revenue for the quarter was up 3.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.74 earnings per share.

A number of analysts have recently issued reports on SYY shares. ValuEngine lowered shares of SYSCO from a “buy” rating to a “hold” rating in a research note on Tuesday. Argus boosted their target price on shares of SYSCO from $67.00 to $86.00 and gave the company a “buy” rating in a research note on Thursday, August 16th. Jefferies Financial Group set a $68.00 target price on shares of SYSCO and gave the company a “hold” rating in a research note on Monday, August 13th. Zacks Investment Research lowered shares of SYSCO from a “hold” rating to a “sell” rating in a research note on Monday, July 23rd. Finally, Wells Fargo & Co upped their price objective on shares of SYSCO from $71.00 to $80.00 and gave the stock a “$70.32” rating in a research note on Wednesday, July 18th. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target of $73.15.

In other SYSCO news, SVP Brian R. Todd sold 9,147 shares of the business’s stock in a transaction dated Wednesday, August 15th. The shares were sold at an average price of $73.82, for a total value of $675,231.54. Following the completion of the transaction, the senior vice president now directly owns 11,747 shares in the company, valued at $867,163.54. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Trian Fund Management, L.P. sold 2,115,358 shares of the business’s stock in a transaction dated Wednesday, September 12th. The stock was sold at an average price of $74.81, for a total transaction of $158,249,931.98. Following the completion of the transaction, the director now owns 4,005 shares of the company’s stock, valued at $299,614.05. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 3,969,811 shares of company stock valued at $297,370,093. 7.88% of the stock is owned by insiders.

Institutional investors have recently made changes to their positions in the business. MUFG Securities EMEA plc bought a new position in SYSCO in the second quarter worth about $14,719,000. Homrich & Berg raised its holdings in SYSCO by 12.7% in the second quarter. Homrich & Berg now owns 13,659 shares of the company’s stock worth $933,000 after purchasing an additional 1,538 shares in the last quarter. Spears Abacus Advisors LLC bought a new position in SYSCO in the second quarter worth about $212,000. NumerixS Investment Technologies Inc bought a new position in SYSCO in the second quarter worth about $1,008,000. Finally, Golub Group LLC raised its holdings in SYSCO by 4.6% in the second quarter. Golub Group LLC now owns 34,278 shares of the company’s stock worth $2,341,000 after purchasing an additional 1,512 shares in the last quarter. Institutional investors and hedge funds own 80.11% of the company’s stock.

The firm has a market capitalization of $37.12 billion, a P/E ratio of 20.53, a PEG ratio of 1.93 and a beta of 0.56. The company has a current ratio of 1.21, a quick ratio of 0.74 and a debt-to-equity ratio of 3.01.

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SYSCO Company Profile (NYSE:SYY)

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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