Institutional investors, who control 83% of the shares in Sysco Corporation (NYSE:SYY), have a significant influence on its share price and board decisions. The company's past earnings trajectory has become a valuable source of insight for individual and professional investors due to potential market implications.
Sysco, a company included in major indices, is closely watched by these institutions as they benchmark their performance. A misstep in their investments can trigger large-scale sell-offs, leading to severe drops in Sysco's share price.
Among the institutional investors, The Vanguard Group, BlackRock (NYSE:BLK), and State Street (NYSE:STT) Global Advisors are the largest shareholders of Sysco, holding stakes of 9.5%, 6.5%, and 4.8% respectively. Interestingly, hedge funds are noticeably absent from the list of significant investors in Sysco.
It's worth noting that Sysco is a prominent player in the Consumer Staples Distribution & Retail industry and has a perfect Piotroski Score of 9, according to InvestingPro Tips. This score indicates that Sysco has a strong financial health and is an attractive investment opportunity. The company has also consistently increased its earnings per share and has raised its dividend for 8 consecutive years, demonstrating its commitment to return value to its shareholders.
InvestingPro data shows that Sysco’s market capitalization is $33.11 billion with a P/E ratio of 18.8. The company's revenue for LTM2023.Q4 stood at $76,324.68 million, representing an 11.2% growth. The company's gross profit for the same period was $13,952.43 million, translating to a gross profit margin of 18.28%. These figures underline Sysco's strong financial performance.
In terms of future prospects, 4 analysts have revised their earnings downwards for the upcoming period, as per InvestingPro Tips. Despite this, Sysco's stock is trading at a low P/E ratio relative to near-term earnings growth, which could indicate that the stock is undervalued. Investors might also want to note that Sysco's stock is trading near its 52-week low, which could present a buying opportunity.
For more insights and tips like these, investors can check out the InvestingPro product that includes additional tips. There are 14 more tips available that can provide a deeper understanding of Sysco's financial health and investment potential. Click here to learn more about InvestingPro.
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