Sysco Corporation stock hits 52-week high at 83.23 USD

Sysco Corporation stock reached a significant milestone, hitting a 52-week high at 83.23 USD. According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall rating and has consistently paid dividends for 55 consecutive years. This marks a notable point for the foodservice distribution company, reflecting positive investor sentiment over the past year. The stock’s performance has been commendable, with a total return of 13.56% over the past year, supported by robust fundamentals including $81.37 billion in revenue and an 18.4% gross profit margin. This upward trend suggests that Sysco’s strategic initiatives and market positioning continue to resonate well with investors, driving the stock to its current peak. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued, with additional insights available in the comprehensive Pro Research Report covering this prominent player in the Consumer Staples sector.

In other recent news, Sysco Corporation has entered into a new $3 billion credit agreement with Bank of America and other lenders, which includes an option to increase the total commitment to $4 billion. This agreement, effective from September 5, 2023, will mature on September 5, 2030, and replaces the company’s previous credit facility. Meanwhile, Moody’s Ratings has changed Sysco’s outlook to negative from stable, citing weakened credit metrics. Specifically, Moody’s noted an increase in Sysco’s adjusted debt/EBITDA ratio and a decline in EBITA/interest expense projections for the fiscal year ending June 2025. Sysco also declared a quarterly dividend of $0.54 per share, payable on October 24, 2025, to shareholders on record as of October 3, 2025. Guggenheim has increased its price target for Sysco to $87, up from $85, while maintaining a Buy rating, reflecting confidence in the company’s operational initiatives. This follows a previous price target increase to $85 from $82, attributed to a strong fourth-quarter earnings performance. These developments highlight ongoing financial and operational adjustments within the company.

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