Gulf International Bank UK Ltd reduces Sysco Corporation holdings in Q1 amidst missed earnings predictions

Gulf International Bank UK Ltd (GIBUK) recently reduced its holdings in Sysco Corporation (NYSE:SYY) by 18.8% during the first quarter of this year, according to the Securities and Exchange Commission disclosure. GIBUK sold 15,466 shares, leaving it with only 66,878 shares worth $5,164,000. The latest information underscored a shift in GIBUK’s strategy of holding on to Sysco shares for many quarters.

Sysco Corporation is known for marketing and distributing various food products mainly to the foodservice or food-away-from-home industry in regions such as the United States, Canada, France, among other parts of the world. Sysco publicly announced that it had earned $0.90 per share while the forecasts stood at $0.92 per share in its last quarterly earnings report filed on May 2nd.

Unfortunately for shareholders such as GIBUK and analysts as well who were banking on a positive result from Sysco quarterly earnings reports; the company missed predictions by $0.02 USD per share. Despite profit-taking activities going on Globally during Q1, Sysco still recorded an increase in revenue generated during this period by accumulating a total of $18.88 billion which was above projections of $18.56 billion and followed from Q1 reporting done one year before.

Sysco delivered net margins of slightly over 2%, reflecting apparent cost-management measures implemented during adverse business environments while still maintaining a return-on-equity ratio above the 100% threshold at 141%. Such performance could partly explain why investment experts exhibited bullish sentiment towards SYY thus forecasting that the company may yet generate up to four times expected earnings-per-share for FY2021.

As investors weigh up whether or not they should hold onto their current SYY position or sell after GIBUK’s tellingly profit-taking move earlier this year; such moves seem to indicate a cautious market environment where results must meet or exceed forecasts to retain investors’ attention. Sysco Corporation shareholders and stakeholders will be keenly watching to see how things unfold in the near future to determine whether the positive trajectory of the company continues.

Sysco Corporation: Attracting Institutional Investors and Building Momentum

Sysco Corporation Continues to Attract Institutional Investors

Sysco Corporation has experienced a 2.9% lift in the first quarter of 2017, as reported by institutional investors from various hedge funds. The increase effectively gave First National Bank of Mount Dora Trust Investment Services an ownership stake of 4,858 shares worth $375,000; this after purchasing an additional 137 shares during that period. Bath Savings Trust Co added to Sysco’s shares by acquiring 2,195 more stocks during the same quarter. Telemus Capital LLC also raised its holdings by an additional 1,170 stocks in the first quarter and has a value about $1.25 million. Buckingham Capital Management increased its stock portfolio by acquiring an extra percentage during the period and Chesley Taft & Associates now have a total of 113,178 Sysco shares under their name.

The fluctuations in stock value started at $73.24 for Sysco stocks on Friday’s opening market but peaked previously at $88.84 within the past year alone. Sysco’s quick ratio stands at .70 which shows they are able to pay off their debts due within a year with ease; however it remains to be seen whether or not such a ratio will remain consistent with a current ratio of 1:21 as well as its debt-equity ratio at 6.51%.

Outlined in their latest business report is Sysco Corporation’s penchant for distributing diverse food-related products mainly towards various facets in the food service industry such as United States and Canada while also catering to other international markets like United Kingdom and France.

Shareholders who own SYY stock before July 7th will receive $.50 per share of the quarterly dividend due every last Friday on July; this represents a bump up from Sysco’s previous dividend payout which was marked at $.49 each quarterly cycle resulting in an annualized yield of roughly around 2.73%. Previously known as Sysco Foodservices, this company has been slowly but surely gaining momentum from its stability in distributing food-related products among other key factors in regards to their performance.

Investment analysts have spoken up about the future of Sysco’s stock and have given the stock a moderate buy rating with an average price target of $86.91. Furthermore, TheStreet reported that Sysco’s steady increase can also be attributed to enhanced marketability which resulted in a boost from a “c+” rating to a solid “b” rating for the past quarter; thus generating better feedback towards clients and investors alike. All in all it seems prudent for investors to keep watch over Sysco Corporation