Summit Financial Cuts Sysco Stake: What the $7 Million Sale Says About the Food Distribution Giant's Outlook

Key Points

• Summit Financial reduced its stake in Sysco by 101,515 shares, an estimated $7.4 million transaction based on average prices for the quarter ended June 30.

• The transaction represented 1.3% of the firm's reportable 13F assets under management.

• Summit Financial reported holding 4,295 Sysco shares valued at $325,266 as of June 30.

• The position represents just 0.1% of AUM, placing it outside the fund's top five holdings.

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Summit Financial Wealth Advisors, LLC disclosed in a Monday filing with the Securities and Exchange Commission that it sold 101,515 shares of food distribution giant Sysco(NYSE:SYY), cutting the vast majority of its stake in the firm.

What happened

According to a Monday SEC filing, Louisiana-based Summit Financial Wealth Advisors, LLC sold 101,515 shares of Sysco during the quarter ended June 30. The estimated transaction value was $7.4 million based on the average closing price for the quarter. The fund’s remaining Sysco holding totaled 4,295 shares, worth $325,266, meaning the firm cut about 95% of its stake.

What else to know

The transaction reduced the Sysco position to 0.1% of fund AUM, down from 1.6% in the prior quarter.

Top holdings after the filing:

• SCHD: $53.05 million (9.5% of AUM)
• VUG: $49.21 million (8.8% of AUM)
• VYMI: $36.55 million (6.6% of AUM)
• NOBL: $24.6 million (4.4% of AUM)
• SPBO: $23.2 million (4.2% of AUM)

As of Monday, Sysco shares were priced at $81.72, up about 5% year over year but underperforming the S&P 500 by more than 10 percentage points during the same period.

Company Overview

Company Snapshot

Sysco distributes a broad range of food products—including frozen foods, fresh meats and seafood, dairy, canned and dry goods, beverages, and non-food supplies—to the foodservice industry.

The company generates revenue primarily through large-scale distribution operations, leveraging its logistics network to supply restaurants, healthcare, education, hospitality, and other institutional clients.

Sysco's primary customers include restaurants, hospitals, nursing homes, schools, hotels, and other foodservice providers across North America and select international markets.

Sysco is a leading global food distribution company with a significant presence in North America and international markets.

Foolish take

Summit Financial’s decision to unload nearly all of its Sysco shares is notable, but it doesn’t necessarily mean the firm has lost confidence in the food distributor. Large managers regularly rebalance portfolios to free up cash or reallocate into higher-conviction ideas. In this case, Sysco had been a modest position for Summit—reflecting less than 2% of reportable assets—and now barely registers at just 0.1%.

For investors, the bigger question is how Sysco stacks up in today’s market. Shares have risen just over 5% in the past year, a steady climb but well short of the S&P 500’s double-digit gains. The lag highlights Sysco’s profile: It’s a defensive stock with dependable cash flows and a long history of paying dividends, not a high-growth story. Its dividend yield is about 2.6%, compared to an average of about 1.25% for the broader S&P 500.

Nevertheless, recent headlines—including a $388 million deal with the U.S. Navy and continued investments in distribution facilities—underscore Sysco’s ability to secure stable revenue streams. Still, the stock’s performance will ultimately depend on restaurant traffic and consumer confidence, both of which are highly sensitive to broader economic trends.

Glossary

13F assets: Securities and assets that institutional investment managers must report quarterly to the Securities and Exchange Commission (SEC) if above a certain threshold.
AUM (Assets Under Management): The total market value of investments managed by a fund or financial institution on behalf of clients.
Dividend Yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Distribution operations: The logistical processes involved in delivering products from suppliers to customers, often on a large scale.
Institutional clients: Organizations such as pension funds, endowments, or corporations that invest large sums of money.
Logistics network: The system of transportation, warehousing, and coordination used to move goods efficiently from suppliers to customers.
Reportable: Refers to holdings or transactions that must be disclosed to regulators, such as the SEC, due to their size or nature.
TTM: The 12-month period ending with the most recent quarterly report.
Underperforming: Delivering a lower return compared to a benchmark or index over a specific period.

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