Factory Mutual Insurance Co. significantly increased its investment in Sysco Corporation, raising its stake by an impressive 139.0% during the second quarter of 2023. This move, detailed in the company’s recent 13F filing with the Securities and Exchange Commission, brings Factory Mutual’s total holdings to 190,000 shares, valued at approximately $14.39 million.
Several other institutional investors have also adjusted their positions in Sysco, reflecting growing confidence in the company. For instance, Boyd Watterson Asset Management LLC increased its stake by 106.4% in the first quarter, acquiring an additional 1,622 shares for a total of 3,147 shares, valued at $236,000. Similarly, Gradient Investments LLC expanded its holdings by 9.2%, now owning 189,169 shares worth around $14.33 million.
Other notable increases include Beacon Financial Group, which raised its stake by 55.5% with 9,955 shares currently valued at $754,000, and Shell Asset Management Co., which lifted its holdings by 31.6% to 19,218 shares, valued at $1.46 million. Overall, institutional investors now own 83.41% of Sysco’s stock.
Insider Transactions and Recent Performance
In related developments, Ronald L. Phillips, Executive Vice President of Sysco, sold 7,351 shares on September 2, 2023, at an average price of $81.00, totaling approximately $595,431. Following this sale, Phillips holds 41,837 shares, now valued at $3.39 million, marking a 14.94% decrease in his position. This transaction was publicly disclosed through SEC filings.
Sysco’s stock has experienced a slight decline, dropping 0.8% recently. The company announced its quarterly earnings on October 24, 2023, reporting an earnings per share (EPS) of $1.15, surpassing analysts’ expectations of $1.12. Sysco’s revenue for the quarter reached $21.15 billion, exceeding projections of $21.03 billion, and representing a year-over-year increase of 3.2%.
The company has set its fiscal year 2026 guidance at approximately $4.50 – $4.60 EPS, with analysts forecasting an average EPS of $4.58 for the current fiscal year.
Dividend and Analyst Ratings
Recently, Sysco declared a quarterly dividend of $0.54, which was paid to shareholders on October 24. The ex-dividend date was set for October 3, and this dividend translates to an annualized amount of $2.16, providing a yield of 2.9%. The company’s dividend payout ratio stands at 57.91%.
Analysts have varied opinions on Sysco’s stock, with Sanford C. Bernstein issuing a “market perform” rating and a price target of $83.00. Conversely, Weiss Ratings downgraded Sysco from a “buy” to a “hold” rating. Several analysts, including UBS Group and Truist Financial, have set different price objectives, with Truist raising its target from $81.00 to $90.00 while maintaining a “buy” rating.
Currently, nine research analysts have rated Sysco stock as a “buy,” while six have given it a “hold,” resulting in an average rating of “Moderate Buy” and a consensus price target of $87.00 according to data from MarketBeat.com.
Sysco Corporation operates as a major distributor of food and related products to the foodservice industry across multiple regions, including the United States, Canada, and the United Kingdom. The company’s diverse operations are segmented into U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and other divisions, highlighting its significant presence in the global market.
