Arcadia Investment Management Corp MI Increases Holdings in Sysco Co. (NYSE:SYY)
Arcadia Investment Management Corp MI has increased its holdings in shares of Sysco Co. (NYSE:SYY) by 24.7% during the fourth quarter of 2022, according to the company’s most recent 13F filing with the Securities & Exchange Commission on May 8, 2023.
The firm owned 26,185 shares of the company’s stock after buying an additional 5,185 shares during the period. Arcadia Investment Management Corp MI’s holdings in Sysco were worth $2,002,000 at the end of the most recent quarter.
Sysco (NYSE:SYY) is a food distribution company that supplies products to restaurants, healthcare and educational facilities, and lodging establishments worldwide.
The company last released its quarterly earnings data on Tuesday, May 2nd. The reported EPS for the quarter was $0.90 which missed analysts’ consensus estimates of $0.92 by ($0.02). However, Sysco had a return on equity of 141.53% and a net margin of 2.05%. The firm had revenue of $18.88 billion during the quarter compared to analyst estimates of $18.56 billion.
During the same quarter in the prior year, Sysco posted an EPS of $0.71 while their quarterly revenue was up by 11.7% on a year-over-year basis.
As a group, equities research analysts expect that Sysco Co will post four EPS for the current year.
The increase in earnings comes as no surprise given Sysco’s robust business model and diversified operational footprint that serves customers across different geographies and segments.
Sysco has been expanding its market presence through strategic acquisitions such as Hawaii-based HFM Foodservice in February this year along with several others over the years which have helped strengthen its position within key markets and enabled it to offer a comprehensive suite of products and services.
With the continued expansion of Sysco’s global presence, coupled with its commitment to innovation, customer service, and sustainability, it is well-positioned to deliver long-term growth. This has certainly caught the attention of Arcadia Investment Management Corp MI who has backed the company with increased shareholdings.
Institutional Investors and Hedge Funds Show Interest in Sysco Corp Despite Market Fluctuations
Sysco Corp, a company specializing in selling and distributing food products to restaurants, healthcare and educational facilities, and lodging establishments, has had several institutional investors and hedge funds add to or reduce their stakes in the company. Vanguard Group Inc., for instance, has boosted its holdings by 1.5%, which now amounts to 47,155,616 shares of the company’s stock valued at $3,334,373,000 after buying an additional 709,072 shares in the last quarter. BlackRock Inc. also raised its position by 1.4%, now owning 31,973,012 shares of the company’s stock worth $2,260,812,000 after buying an additional 448,790 shares during the last quarter. This indicates that there is interest from a variety of influential players within Sysco Corp.
Despite drops in target prices from Morgan Stanley to $83 from $86 and Deutsche Bank Aktiengesellschaft dropping their price objective on shares of Sysco from $83 to $80. The firm has enjoyed consensus ratings of “Moderate Buy” and an average target price of $87.27 according to data from Bloomberg.
Trading at just over $76 per share as of May 8th with dividends that have increased since its initial release date on July 28th until today whereby it boasts a yearly yield of 2.61% with a quarterly dividend rate raised recently from $0.49 to $0.50.
Sysco Corp has weathered turbulent economic headlines well owing thanks no doubt in part due to its focused business acumen – specialising solely in food production distribution to specified markets – strategically mitigating risk which tempted hedge fund involvement early-on.
No stranger to market fluctuations and perhaps even thriving in complicated times like these it is certainly one worth keeping track off within a robust economic strategy indicative of present trends within the sector.
Source: beststocks.com
