Investors Purchase Large Volume of Sysco Call Options (NYSE:SYY)

Sysco Corporation (NYSE:SYY) was the recipient of unusually large options trading on Monday. Stock traders bought 4,068 call options on the stock. This is an increase of 111% compared to the typical volume of 1,932 call options.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Weiss Ratings upgraded shares of Sysco from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, February 24th. Wells Fargo & Company raised their target price on shares of Sysco from $92.00 to $100.00 and gave the company an “overweight” rating in a research note on Thursday, February 19th. Truist Financial lifted their price target on shares of Sysco from $90.00 to $94.00 and gave the stock a “buy” rating in a report on Wednesday, January 28th. Morgan Stanley reduced their price target on Sysco from $88.00 to $85.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 20th. Finally, Argus upgraded Sysco to a “hold” rating in a report on Thursday, January 29th. Ten equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $90.31.

Sysco Stock Performance

SYY opened at $69.63 on Tuesday. The company has a market cap of $33.35 billion, a P/E ratio of 18.72, a price-to-earnings-growth ratio of 2.54 and a beta of 0.58. The company has a quick ratio of 0.75, a current ratio of 1.30 and a debt-to-equity ratio of 5.45. The firm’s 50-day moving average price is $84.74 and its 200-day moving average price is $79.54. Sysco has a 52-week low of $67.12 and a 52-week high of $91.85.

Sysco (NYSE:SYY) last released its earnings results on Tuesday, January 27th. The company reported $0.99 EPS for the quarter, topping analysts’ consensus estimates of $0.98 by $0.01. The company had revenue of $20.76 billion during the quarter, compared to analysts’ expectations of $20.80 billion. Sysco had a net margin of 2.17% and a return on equity of 109.21%. Sysco’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same period last year, the business earned $0.93 EPS. Sysco has set its FY 2026 guidance at 4.600-4.600 EPS. As a group, equities analysts anticipate that Sysco will post 4.58 EPS for the current fiscal year.

Sysco Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Thursday, April 2nd will be paid a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Thursday, April 2nd. Sysco’s payout ratio is presently 58.06%.

Insider Buying and Selling at Sysco

In related news, Director Sheila Talton sold 2,801 shares of the company’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $82.99, for a total transaction of $232,454.99. Following the completion of the sale, the director directly owned 12,868 shares in the company, valued at $1,067,915.32. This represents a 17.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Ronald L. Phillips sold 5,601 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $81.00, for a total value of $453,681.00. Following the sale, the executive vice president directly owned 35,965 shares in the company, valued at approximately $2,913,165. The trade was a 13.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Sysco

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SYY. Norges Bank purchased a new position in shares of Sysco in the fourth quarter worth about $542,780,000. Wellington Management Group LLP boosted its position in Sysco by 3,977.1% in the third quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company’s stock valued at $387,935,000 after buying an additional 4,595,819 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in Sysco by 45.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 5,651,682 shares of the company’s stock valued at $416,472,000 after buying an additional 1,754,306 shares during the last quarter. Mondrian Investment Partners LTD acquired a new position in Sysco in the 3rd quarter worth approximately $142,237,000. Finally, Marshall Wace LLP raised its position in Sysco by 102.6% during the 3rd quarter. Marshall Wace LLP now owns 2,359,471 shares of the company’s stock worth $194,279,000 after buying an additional 1,194,815 shares during the last quarter. Hedge funds and other institutional investors own 83.41% of the company’s stock.

Key Headlines Impacting Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Deal boosts long‑term growth and margins — Management says the acquisition expands Sysco into the cash‑and‑carry channel, which is higher margin and complementary to its existing business; company projections cited material increases to revenue, EBITDA and free cash flow over time. Sysco Expands Foodservice Reach With $29 Billion Jetro Deal
• Positive Sentiment: Management backing — CEO Kevin Hourican publicly defended the deal on CNBC’s Squawk Box, calling Jetro a “gem” and arguing the combination accelerates strategic goals, which supports a longer‑term case for investors who focus on scale and channel diversification. Sysco CEO Kevin Hourican on $29 billion Jetro Restaurant Depot deal
• Neutral Sentiment: Deal structure and timeline — The transaction implies about $29.1B enterprise value, consisting of roughly $21.6B cash plus ~91.5M Sysco shares; closing is expected in 2027 and remains subject to regulatory approvals. Sysco nears $29 billion deal to buy Restaurant Depot
• Neutral Sentiment: More detail available — Company hosted M&A calls and filed announcements/8‑K; transcripts and filings provide detail on integration plans and modeled synergy assumptions. Sysco Corporation (SYY) M&A Call Transcript
• Neutral Sentiment: Unusual options activity — Traders bought significantly more SYY calls on the announcement day, indicating some speculative or tactical positioning around the volatility. (news feed entry)
• Negative Sentiment: Financing, leverage and pause of buybacks — Sysco plans to fund most of the cash portion with new debt (reports ~ $21B) and has paused its share‑repurchase program to prioritize deleveraging, raising near‑term leverage and dilution concerns for shareholders. Sysco to Acquire Jetro Restaurant Depot in Major Deal
• Negative Sentiment: Market reaction and execution risk — Investors sold into the news amid concerns over the deal’s size, integration complexity and regulatory risk; that selling pressure pushed the stock significantly lower on heavy volume. Here’s Why Sysco’s “Transformative” Acquisition Is Sinking Its Stock

About Sysco

Sysco Corporation (NYSE: SYY) is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.