Guggenheim has recently raised Sysco Corp (SYY) stock to Buy rating, as announced on May 28, 2024, according to Finviz. Earlier, on November 21, 2023, Piper Sandler had resumed the stock to Neutral, setting a price target of $73. Deutsche Bank also initiated Buy rating with a price target of $75. Additionally, BofA Securities resumed Buy rating on March 9, 2023, with a target price of $90. Argus analysts, in their report published on February 2, 2023, also reduced Hold rating for Sysco Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Sysco Corp (SYY) Stock Trading Recap
On Tuesday, Sysco Corp (SYY) stock saw a modest uptick, ending the day at $74.77 which represents a slight increase of $0.06 or 0.08% from the prior close of $74.71. The stock opened at $74.72 and touched a low of $74.3 during the day, reaching a high of $74.96. The volume of shares traded was 1.88 million falling short of the average volume of 3.30 million.
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SYY Stock Performance and Moving Averages
In recent trading, Sysco Corp (SYY) stock price has shown some volatility, fluctuating -1.05% over the last five trades and -1.85% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -2.85%, and it has gained 5.01% in the previous three months. Currently, SYY is trading at -1.42%, -2.23%, and -1.83% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, SYY, a Consumer Defensive sector stock, is trading -9.80% below its 52-week high but remains 16.32% above its 52-week low. The Average True Range (ATR) (14 days) of 1.21 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Sysco Corp’s Profitability and Valuation Ratios
Sysco Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 4.31% and a profit margin of 2.48%, with a gross margin of -2.85%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Sysco Corp’s market capitalization stands at $36.73 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 19.22, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 15.07. Additionally, the Price-to-Sales Ratio is 0.47, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 19.77, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.25% of Sysco Corp (SYY)’s shares, while financial institutions hold 86.11%.
Notable insider trades include Jasper James Chris, SVP at Sysco Corp (SYY), who sold 4000 shares on Mar 14 ’24, at $80.41 each, totaling $0.32 million. On Mar 06 ’24, Russell Neil, SVP, Corp. Affairs and CAO, sold 1722 shares for $80 each, amounting to $0.14 million. Additionally, on Nov 22 ’23, Talton Sheila sold 2200 shares at $71.76 each, generating $0.16 million.
