RWC Asset Management LLP has reduced its stake in Sysco Corporation (NYSE: SYY) by 7.0% during the third quarter of 2023. According to a disclosure filed with the Securities and Exchange Commission (SEC), the institutional investor now holds 545,201 shares after selling 41,350 shares in this period. Sysco represents approximately 2.2% of RWC Asset Management’s investment portfolio, making it the firm’s tenth largest holding. As of the end of the quarter, the value of RWC’s stake in Sysco stood at about $44.9 million.
Several other institutional investors have also adjusted their positions in Sysco recently. Notably, Norges Bank acquired a new stake in the company during the second quarter, valued at approximately $493.7 million. Vanguard Group Inc. increased its holdings by 2.0%, now owning 62,691,177 shares valued at $4.75 billion after acquiring an additional 1,226,381 shares. Similarly, Marshall Wace LLP raised its stake by an impressive 207.6%, holding 1,164,656 shares worth $88.2 million. Arrowstreet Capital Limited Partnership also boosted its holdings by 143.2%, owning 1,215,260 shares valued at $92.0 million. Virginia Retirement Systems has shown significant growth, increasing its position by 163.1% in the third quarter, now owning 710,900 shares valued at $58.5 million.
Institutional investors collectively hold 83.41% of Sysco’s stock, reflecting strong interest from the financial community.
Sysco Stock Performance and Dividend Announcement
Sysco’s stock opened at $74.33 on Tuesday, demonstrating a market capitalization of $35.59 billion. The company reports a debt-to-equity ratio of 5.54, a quick ratio of 0.65, and a current ratio of 1.15. With a price-to-earnings (P/E) ratio of 19.93 and a P/E growth (P/E/G) ratio of 2.45, Sysco’s stock has experienced fluctuations, with a one-year low of $67.12 and a high of $83.47.
In addition to its stock performance, Sysco recently announced a quarterly dividend of $0.54 per share, scheduled for distribution on January 23, 2024. Shareholders of record on January 2, 2024 will receive this dividend, amounting to an annualized total of $2.16 and yielding approximately 2.9%. The ex-dividend date is also set for January 2, 2024, with the company currently maintaining a payout ratio of 57.91%.
Analyst Ratings and Market Outlook
Recent evaluations from brokerages indicate a mix of optimism and caution regarding Sysco’s stock. Morgan Stanley has set a price objective of $88.00, while Barclays raised its target from $86.00 to the same figure, issuing an “overweight” rating. Conversely, Piper Sandler adjusted its price objective downward from $81.00 to $80.00, maintaining a “neutral” stance. Additionally, Wall Street Zen downgraded its rating from “buy” to “hold,” while Guggenheim has increased its price target from $87.00 to $89.00, labeling the stock as a “buy.”
The overall sentiment from analysts reflects a consensus rating of “Moderate Buy” with an average target price of $86.00, suggesting a generally positive outlook for Sysco amid recent adjustments by institutional investors.
Sysco Corporation, headquartered in Houston, Texas, is a leading global foodservice distribution company. It supplies a wide range of food and related products to various sectors, including restaurants, healthcare facilities, educational institutions, and lodging establishments. Founded in 1969, Sysco has grown through both organic expansion and strategic acquisitions, positioning itself as a comprehensive supplier for foodservice operators of all sizes.
