Wellington Management Co. LLP recently announced the acquisition of new stake in Sysco Corporation (NYSE:SYY). The institutional investor has increased its shareholding in the Consumer Defensive company by 7.28% to 28.7 million shares with purchase of 1.95 million shares. This fresh investment now brings its stake to 5.66% valued currently at $1.52 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.2 million to 26.6 million shares. And Trian Fund Management LP has lifted its position by 2.97% or 0.7 million shares – to 24.38 million shares.
With over 4.05 million Sysco Corporation (SYY) shares trading Tuesday and a closing price of $58.20 on the day, the dollar volume was approximately $235.74 million. The shares have shown a negative weekly performance of -2.33% and its price on 08/25/20 lost nearly -2.20%. Currently, there are 508.75M common shares owned by the public and among those 507.48M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for SYY have a consensus price objective of $63.25. The analysts have set the share’s price value over the next 12 months at a high of $74.00 and a low of $45.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Sysco Corporation stock is 2.50 for the next 12 months. The average price target is 8.35% above its last price level and an upside to the estimated low will see the stock lose -29.33% over that period. But an upside of 21.35% will see the stock hit the forecast high price target while mean target price for the stock is $64.00.
Insiders at the company have transacted a total of 114 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 79 of these insider trades were purchases, accounting for 1,590,331 shares. Insider sales of the common stock occurred on 35 occasions, with total insider shares sold totaling 675,587 shares.
The top 3 mutual fund holders in Sysco Corporation are Vanguard Wellington Fund, Vanguard Total Stock Market Index, and Vanguard 500 Index Fund. Vanguard Wellington Fund owns 17.31 million shares of the company’s stock, all valued at over $914.89 million. The company bought an additional 1.88 million shares recently to bring their total holdings to about 3.41% of the shares outstanding. Vanguard Total Stock Market Index sold 24302.0 shares to see its total holdings shrink to 13.72 million shares valued at over $724.92 million and representing 2.70% of the shares outstanding. Vanguard 500 Index Fund sold 64197.0 shares to bring its total holdings to over 10.47 million shares at a value of $553.18 million. Vanguard 500 Index Fund now owns shares totaling to 2.06% of the shares outstanding.
Shares of Sysco Corporation (NYSE: SYY) opened at $59.76, up $0.25 from a prior closing price of $59.51. However, the script later closed the day at $58.20, down -2.20%. The company’s stock has a 5-day price change of -2.33% and 2.19% over the past three months. SYY shares are trading -31.96% year to date (YTD), with the 12-month market performance down to -20.65% lower. It has a 12-month low price of $26.00 and touched a high of $85.98 over the same period. Currently, 4.05 million shares have been traded, compared to an average intraday trading volume of 3.78 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.07%, 5.11%, and -8.76% respectively.
Institutional ownership of Sysco Corporation (NYSE: SYY) shares accounts for 82.60% of the company’s 508.75M shares outstanding. Mutual fund holders own 41.11%, while other institutional holders and individual stakeholders account for 5.92% and 40.74% respectively.
It has a market capitalization of $29.82B and a beta (3y monthly) value of 1.19. The stock’s trailing 12-month PE ratio is 21.99, while the earnings-per-share (ttm) stands at $2.65. The company has a PEG of 1.02 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 5.35. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.97% over the week and 3.33% over the month.
Analysts forecast that Sysco Corporation (SYY) will achieve an EPS of $0.27 for the current quarter, $0.4 for the next quarter and $3 for 2022. The lowest estimate earnings-per-share for the quarter is $0.14 while analysts give the company a high EPS estimate of $0.34. Comparatively, EPS for the current quarter was $0.98 a year ago. Earnings per share for the fiscal year are expected to increase by 25.50%, and 67.39% over the next financial year. EPS should grow at an annualized rate of 21.50% over the next five years, compared to 15.40% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate Sysco Corporation (SYY) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 4 of the 11 advise that investors “hold,” and 1 rated it as a “Sell.”
Looking at the support for the SYY, a number of firms have released research notes about the stock. Credit Suisse stated their Outperform rating for the stock in a research note on August 06, 2020, with the firm’s price target at $65. Wells Fargo coverage for the Sysco Corporation (SYY) stock in a research note released on June 05, 2020 offered a Overweight rating with a price target of $70. Piper Sandler was of a view on June 01, 2020 that the stock is Overweight, while BMO Capital Markets gave the stock Market Perform rating on April 23, 2020, issuing a price target of $88- $51. Jefferies on their part issued Buy rating on March 26, 2020.