Food distributor Sysco Corp (NYSE:SYY) is moving 11% lower to trade at $72.83 this morning, after news broke that it will be purchasing Jetro Restaurant Depot for $29.1 billion. Sysco cited the deal as "immediately accretive," with an aim to finalize in 2027's fiscal third quarter.
Should these losses hold, SYY could mark a third-straight daily drop, extending its fall from its Feb. 17 record high of $91.84. The stock is now trading at its lowest level since May and carries a 12% six-month deficit, with the 60-day moving average adding pressure.
Analyst have been overwhelmingly bullish toward the equity. Heading into today, 10 of the 17 brokerages in covering sport a "strong buy" recommendation. An unwinding in this bullish sentiment could trigger more headwinds for the shares.
Options look affordably priced as well. This is per Sysco stock's Schaeffer's Volatility Index (SVI) of 23% that stands higher than 29% of all other readings from the past year. In other words, near-term option traders are pricing in relatively low volatility expectations.
