Factory Mutual Insurance Co. significantly increased its investment in Sysco Corporation, raising its holdings by 139% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the insurance company now owns 190,000 shares, valued at approximately $14.39 million after acquiring an additional 110,500 shares during the quarter.
Other institutional investors have also adjusted their positions in Sysco, indicating a growing interest in the company. For instance, Boyd Watterson Asset Management LLC raised its stake by 106.4% in the first quarter, bringing its total to 3,147 shares worth $236,000. Gradient Investments LLC increased its holdings by 9.2% during the same period, now owning 189,169 shares valued at $14.33 million after adding 15,906 shares.
Similarly, Beacon Financial Group and Brighton Jones LLC expanded their positions. Beacon Financial increased its stake by 55.5%, holding 9,955 shares worth $754,000, while Brighton Jones grew its holdings by 4.3% to 90,338 shares, valued at $6.84 million. Additionally, Shell Asset Management Co. lifted its holdings by 31.6%, now owning 19,218 shares worth $1.46 million. Institutional investors collectively own 83.41% of Sysco’s stock.
In related corporate activity, Sysco’s Executive Vice President, Ronald L. Phillips, sold 7,351 shares on September 2, 2023, at an average price of $81.00, resulting in a total transaction value of $595,431. Following this sale, Phillips retained 41,837 shares in the company, valued at $3.39 million, which marked a 14.94% decrease in his position. Over the past 90 days, insiders have sold a total of 14,598 shares valued at $1.18 million. Currently, insiders own 0.56% of the company’s stock.
Sysco Reports Earnings and Dividend Announcement
Sysco Corporation recently released its quarterly earnings on October 24, 2023, reporting an earnings per share (EPS) of $1.15, exceeding analysts’ expectations of $1.12 by $0.03. The company achieved a net margin of 2.21% and a return on equity of 112.04%. Additionally, Sysco generated $21.15 billion in revenue for the quarter, surpassing analyst estimates of $21.03 billion, and up 3.2% year-over-year from $1.09 EPS in the same period last year. The company has set its fiscal year 2026 guidance for EPS between $4.50 and $4.60.
On the dividend front, Sysco announced a quarterly dividend of $0.54, which was paid to stockholders on October 24, 2023. The dividend was distributed to shareholders of record as of October 3, 2023, with an ex-dividend date also noted on October 3. This translates to an annualized dividend of $2.16 and a dividend yield of 2.9%. Sysco’s dividend payout ratio stands at 57.91%.
Market Analysts Provide Outlook
Several research analysts have weighed in on Sysco’s performance, with differing opinions on the company’s future. Sanford C. Bernstein recently began coverage, rating Sysco as “market perform” with a price target of $83.00. Meanwhile, Weiss Ratings downgraded the stock from a “buy (b-)” to a “hold (c),” and Wall Street Zen also shifted its rating from “buy” to “hold.” In contrast, UBS Group has set a price objective of $90.00, while Truist Financial raised its target from $81.00 to $90.00, maintaining a “buy” rating.
Among analysts, nine have rated Sysco as a buy, while six have given it a hold rating. According to MarketBeat.com, the stock currently holds an average rating of “Moderate Buy” and a consensus price target of $87.00.
Sysco Corporation operates as a leading distributor of food and related products, serving the foodservice industry across the United States, Canada, the United Kingdom, France, and other international markets. It functions through various segments, including U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and others.
