Sysco (NYSE:SYY) Shares Gap Down – Here’s Why

Shares of Sysco Corporation (NYSE:SYY) gapped down before the market opened on Tuesday. The stock had previously closed at $81.74, but opened at $77.61. Sysco shares last traded at $78.0830, with a volume of 1,355,813 shares trading hands.

Key Headlines Impacting Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Sysco reported first-quarter adjusted EPS of $1.19, up from $1.15 a year earlier and above the Zacks consensus estimate of $1.17. The result was in line with the broader consensus cited in other reports. Sysco Q1 Earnings Estimates
• Positive Sentiment: Management reiterated its fiscal 2027 adjusted EPS growth outlook of 9% to 11% and maintained its local case volume guidance, providing some reassurance that the company’s full-year targets remain intact. Sysco Q1 Earnings and Outlook
• Neutral Sentiment: Sysco appointed Brandon E. Sewell as executive vice president and chief financial officer, effective November 1. Sewell had served as interim CFO since March and has 12 years of experience at the company, reducing uncertainty around the finance leadership transition. Sysco Names Brandon Sewell CFO
• Negative Sentiment: First-quarter revenue rose 2.8% year over year to $21.74 billion, but fell short of the $22.02 billion analyst estimate. The sales miss suggests softer demand or volume trends and was the primary catalyst for the negative stock reaction despite the EPS performance. Sysco First Quarter 2027 Results

Analysts Set New Price Targets

A number of research firms have recently commented on SYY. Citigroup reaffirmed a “neutral” rating on shares of Sysco in a research report on Monday, October 26th. Wall Street Zen lowered Sysco from a “buy” rating to a “hold” rating in a research report on Saturday, October 24th. Weiss Ratings upgraded Sysco from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 15th. Guggenheim reaffirmed a “buy” rating and set a $90.00 price objective on shares of Sysco in a research note on Wednesday, September 16th. Finally, Morgan Stanley raised their price objective on shares of Sysco from $88.00 to $91.00 and gave the stock an “equal weight” rating in a report on Thursday, October 15th. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Sysco currently has an average rating of “Moderate Buy” and a consensus price target of $90.42.

Sysco Stock Performance

The company has a debt-to-equity ratio of 4.62, a current ratio of 1.28 and a quick ratio of 0.77. The stock has a 50-day moving average price of $80.49 and a 200-day moving average price of $80.54. The firm has a market capitalization of $36.98 billion, a PE ratio of 20.56, a price-to-earnings-growth ratio of 2.31 and a beta of 0.66.

Sysco (NYSE:SYY) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $1.19 EPS for the quarter, hitting analysts’ consensus estimates of $1.19. Sysco had a return on equity of 95.05% and a net margin of 2.08%. The firm had revenue of $21.74 billion for the quarter, compared to the consensus estimate of $22.02 billion. During the same quarter in the prior year, the company posted $1.15 earnings per share. The firm’s revenue was up 2.8% on a year-over-year basis. On average, research analysts expect that Sysco Corporation will post 5.09 EPS for the current fiscal year.

Sysco Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Stockholders of record on Friday, October 2nd were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Friday, October 2nd. Sysco’s dividend payout ratio (DPR) is currently 60.11%.

Insider Activity at Sysco

In other news, EVP Ronald Phillips sold 7,350 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $83.61, for a total value of $614,533.50. Following the sale, the executive vice president directly owned 38,650 shares of the company’s stock, valued at approximately $3,231,526.50. This represents a 15.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 15,525 shares of company stock valued at $1,299,736 in the last quarter. 0.55% of the stock is currently owned by insiders.

Institutional Trading of Sysco

A number of hedge funds have recently added to or reduced their stakes in the company. Eliot Finkel Investment Counsel LLC purchased a new stake in shares of Sysco during the third quarter worth $2,903,000. Plancorp LLC boosted its stake in shares of Sysco by 6.9% during the 3rd quarter. Plancorp LLC now owns 3,089 shares of the company’s stock worth $256,000 after acquiring an additional 199 shares during the last quarter. Alps Advisors Inc. raised its position in shares of Sysco by 6.4% during the third quarter. Alps Advisors Inc. now owns 11,397 shares of the company’s stock valued at $889,000 after buying an additional 690 shares during the last quarter. Ashton Thomas Private Wealth LLC grew its position in Sysco by 1.7% in the third quarter. Ashton Thomas Private Wealth LLC now owns 13,634 shares of the company’s stock worth $1,063,000 after acquiring an additional 223 shares in the last quarter. Finally, CenterBook Partners LP lifted its position in shares of Sysco by 643.0% during the third quarter. CenterBook Partners LP now owns 72,921 shares of the company’s stock worth $5,685,000 after purchasing an additional 63,106 shares during the last quarter. 83.41% of the stock is owned by hedge funds and other institutional investors.

Sysco Company Profile

Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.

The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.

Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.