Sysco (NYSE:SYY) Shares Gap Down on Disappointing Earnings

Shares of Sysco Co. (NYSE:SYY) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $70.42, but opened at $68.36. Sysco shares last traded at $69.85, with a volume of 693,857 shares trading hands.

The company reported $0.96 earnings per share for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.07). Sysco had a net margin of 2.40% and a return on equity of 106.30%. During the same quarter in the prior year, the business earned $0.96 earnings per share. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis.

Sysco Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Thursday, July 3rd will be issued a dividend of $0.54 per share. The ex-dividend date of this dividend is Thursday, July 3rd. This is a boost from Sysco’s previous quarterly dividend of $0.51. This represents a $2.16 annualized dividend and a yield of 3.06%. Sysco’s payout ratio is 55.53%.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on SYY shares. Truist Financial dropped their price target on Sysco from $85.00 to $83.00 and set a “buy” rating on the stock in a report on Wednesday, January 29th. JPMorgan Chase & Co. reduced their price target on shares of Sysco from $86.00 to $82.00 and set an “overweight” rating for the company in a research report on Tuesday, February 4th. Sanford C. Bernstein set a $87.00 price objective on shares of Sysco and gave the stock an “overweight” rating in a research report on Tuesday, April 22nd. Morgan Stanley decreased their price target on shares of Sysco from $79.00 to $77.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 29th. Finally, Guggenheim reissued a “buy” rating and set a $85.00 price objective on shares of Sysco in a report on Wednesday, January 29th. Four equities research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat.com, Sysco presently has a consensus rating of “Moderate Buy” and a consensus price target of $85.07.

Institutional Trading of Sysco

Several institutional investors and hedge funds have recently modified their holdings of SYY. Rialto Wealth Management LLC lifted its position in Sysco by 188.7% during the first quarter. Rialto Wealth Management LLC now owns 332 shares of the company’s stock valued at $25,000 after purchasing an additional 217 shares during the last quarter. Parvin Asset Management LLC purchased a new position in Sysco in the fourth quarter worth $29,000. Stonebridge Financial Group LLC bought a new position in Sysco in the fourth quarter valued at $31,000. Sherman Asset Management Inc. purchased a new stake in Sysco during the fourth quarter valued at about $31,000. Finally, Flagship Wealth Advisors LLC purchased a new position in shares of Sysco in the 4th quarter worth about $31,000. Hedge funds and other institutional investors own 83.41% of the company’s stock.

Sysco Price Performance

The firm has a 50-day moving average price of $72.79 and a 200 day moving average price of $74.41. The stock has a market capitalization of $34.52 billion, a P/E ratio of 18.14, a price-to-earnings-growth ratio of 1.88 and a beta of 0.91. The company has a debt-to-equity ratio of 5.66, a quick ratio of 0.68 and a current ratio of 1.20.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.