Diageo (NYSE:DEO) Reaches New 1-Year Low - Here's What Happened

Key Points

• Diageo's shares reached a 52-week low of $96.39 during trading on Monday, having closed the previous day at $97.64.
• Goldman Sachs upgraded Diageo from a "sell" rating to a "neutral" rating, with a current consensus rating of "Hold" and an average price target of $129.00.
• The company announced an increase in its semi-annual dividend to $2.5192, with a payout ratio of 72.55%, set to be paid on December 4th.

Shares of Diageo plc (NYSE:DEO - Get Free Report) hit a new 52-week low during trading on Monday . The stock traded as low as $96.39 and last traded at $96.56, with a volume of 225937 shares trading hands. The stock had previously closed at $97.64.

Analyst Ratings Changes

Separately, The Goldman Sachs Group upgraded shares of Diageo from a "sell" rating to a "neutral" rating in a research report on Thursday, August 7th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $129.00.

Diageo Stock Performance

The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.64 and a current ratio of 1.63. The company has a market capitalization of $53.59 billion, a P/E ratio of 14.07, a P/E/G ratio of 3.47 and a beta of 0.59. The business's fifty day simple moving average is $106.43 and its 200-day simple moving average is $107.26.

Diageo Increases Dividend

The firm also recently announced a semi-annual dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, October 17th will be issued a $2.5192 dividend. This is a boost from Diageo's previous semi-annual dividend of $1.62. The ex-dividend date is Friday, October 17th. This represents a dividend yield of 370.0%. Diageo's payout ratio is presently 46.42%.

Institutional Trading of Diageo

Large investors have recently made changes to their positions in the business. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Diageo by 16.3% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 138,252 shares of the company's stock worth $14,488,000 after buying an additional 19,327 shares during the last quarter. Philip James Wealth Mangement LLC bought a new position in Diageo during the 1st quarter valued at about $1,908,000. Martin Capital Partners LLC grew its holdings in Diageo by 225.8% during the 2nd quarter. Martin Capital Partners LLC now owns 32,525 shares of the company's stock valued at $3,280,000 after purchasing an additional 22,542 shares during the last quarter. Miracle Mile Advisors LLC grew its holdings in Diageo by 30.1% during the 1st quarter. Miracle Mile Advisors LLC now owns 40,492 shares of the company's stock valued at $4,243,000 after purchasing an additional 9,366 shares during the last quarter. Finally, Carnegie Investment Counsel grew its holdings in Diageo by 2,331.0% during the 1st quarter. Carnegie Investment Counsel now owns 41,036 shares of the company's stock valued at $4,178,000 after purchasing an additional 39,348 shares during the last quarter. 8.97% of the stock is currently owned by institutional investors.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products.