The Police & Firemen’s Retirement System of New Jersey has raised its stake in Sysco Corporation, increasing its investment by 2.9% during the second quarter of 2023. According to the latest 13F filing with the Securities and Exchange Commission, the retirement system now holds 73,522 shares of Sysco’s stock, valued at approximately $5.57 million.
This adjustment comes as part of a broader trend among institutional investors, with several hedge funds modifying their holdings in the company. For example, Boyd Watterson Asset Management LLC significantly boosted its position in Sysco by 106.4% during the first quarter, acquiring an additional 1,622 shares. This increased their total ownership to 3,147 shares, valued at $236,000.
Other notable changes include Salvus Wealth Management LLC, which purchased a new stake in Sysco worth $329,000, and Gradient Investments LLC, which raised its holdings by 9.2%, now owning 189,169 shares valued at $14.33 million. Brighton Jones LLC and Beacon Financial Group also expanded their positions, with the latter increasing its stake by 55.5%, now owning 9,955 shares valued at $754,000. Currently, institutional investors and hedge funds control approximately 83.41% of Sysco’s stock.
Sysco’s Stock Performance and Dividend Announcement
As of the latest trading session, Sysco Corporation’s shares opened at $74.66. The company’s 50-day moving average price stands at $78.80, while the two-hundred-day moving average price is $77.18. Sysco has experienced a 12-month low of $67.12 and a high of $83.47. The company currently boasts a market capitalization of $35.75 billion and a price-to-earnings (P/E) ratio of 20.02.
In addition to the increase in stake by the New Jersey retirement fund, Sysco recently announced a quarterly dividend of $0.54 per share, payable on January 23, 2024. This dividend will benefit shareholders of record as of January 2, 2024, reflecting an annualized dividend of $2.16 and a yield of 2.9%. The company’s dividend payout ratio is currently reported at 57.91%.
Insider Activity and Analyst Ratings
In related news, Sysco’s Executive Vice President Ronald L. Phillips sold 7,351 shares on September 2, 2023, at an average price of $81.00, totaling $595,431 for the transaction. Following this sale, Phillips holds 41,837 shares valued at approximately $3.39 million, marking a 14.94% decrease in his ownership.
Wall Street analysts have expressed optimism regarding Sysco’s future. UBS Group set a price target of $90.00, while Guggenheim raised its target from $87.00 to $89.00, giving the stock a “buy” rating. Barclays also increased its target price to $86.00 with an “overweight” rating. Bank of America has similarly raised its price objective from $81.00 to $93.00.
According to data from MarketBeat.com, Sysco currently holds an average rating of “Moderate Buy,” with nine analysts issuing buy ratings and six rating the stock as a hold. The consensus target price for Sysco stands at $87.00.
Sysco Corporation operates as a global foodservice distributor, supplying food and related products to the foodservice industry across various regions, including the United States, Canada, and Europe. The company is divided into several segments, including U.S. Foodservice Operations, International Foodservice Operations, and SYGMA.
