Factory Mutual Insurance Co. has significantly increased its investment in Sysco Corporation, raising its stake by 139.0% during the second quarter of 2023. According to the latest 13F filing with the Securities and Exchange Commission, the insurance company now holds 190,000 shares of Sysco, valued at approximately $14.39 million after acquiring an additional 110,500 shares during the period.
Other institutional investors have also adjusted their positions in Sysco. Notably, Boyd Watterson Asset Management LLC in Ohio raised its stake by 106.4% in the first quarter, bringing its total to 3,147 shares, valued at $236,000 following the purchase of an extra 1,622 shares.
Gradient Investments LLC increased its holdings in Sysco by 9.2% during the second quarter, now owning 189,169 shares valued at $14.33 million, after acquiring 15,906 shares. Additionally, Beacon Financial Group grew its position by 55.5%, now holding 9,955 shares worth $754,000, and Shell Asset Management Co. increased its stake by 31.6%, owning 19,218 shares valued at $1.46 million.
As of now, institutional investors collectively own approximately 83.41% of Sysco’s stock.
Insider Transactions and Recent Performance
In related news, Sysco’s Executive Vice President, Ronald L. Phillips, sold 7,351 shares in a transaction on September 2, 2023, at an average price of $81.00, totaling $595,431. Following this sale, Phillips retained 41,837 shares, valued at $3.39 million, marking a 14.94% decrease in his position. Over the past three months, insiders have sold a total of 14,598 shares worth $1.18 million, with insiders holding 0.56% of the company’s stock.
Sysco’s stock price recently declined by 0.8% following the release of its quarterly earnings report on October 24, 2023. The company reported earnings per share (EPS) of $1.15, surpassing analysts’ expectations of $1.12. Sysco’s net margin was reported at 2.21%, with a return on equity of 112.04%. The firm generated revenue of $21.15 billion, exceeding the projected $21.03 billion and marking a 3.2% increase in revenue compared to the same quarter last year. For the fiscal year 2026, Sysco has set an EPS guidance of $4.50 to $4.60.
Dividend Announcement and Analyst Ratings
Sysco also announced a quarterly dividend of $0.54 per share, paid on October 24, 2023, to stockholders of record as of October 3, 2023. This results in an annualized dividend of $2.16 and a dividend yield of 2.9%. The company’s dividend payout ratio currently stands at 57.91%.
Recent evaluations from analysts suggest a mixed outlook for Sysco. Sanford C. Bernstein initiated coverage with a “market perform” rating and a price target of $83.00. In contrast, Weiss Ratings downgraded the stock from a “buy” to a “hold” rating. Similarly, Wall Street Zen adjusted its rating from “buy” to “hold.” Meanwhile, UBS Group set a price target of $90.00, while Truist Financial raised its target from $81.00 to $90.00 and maintained a “buy” rating. Overall, nine analysts have rated Sysco as a “buy,” while six have assigned a “hold” rating, resulting in an average rating of “Moderate Buy” with a consensus price target of $87.00.
Sysco Corporation operates through its subsidiaries, focusing on marketing and distributing food and related products to the foodservice sector across the United States, Canada, the United Kingdom, France, and other international markets. The company operates through various segments, including U.S. Foodservice Operations and International Foodservice Operations.
