Diageo plc (NYSE:DEO) Given Average Rating of "Hold" by Brokerages

Key Points

• Diageo plc has received an average rating of "Hold" from seven research firms, with one sell recommendation and three each for hold and buy.
• The company recently increased its semi-annual dividend to $2.5192 per share, compared to the previous dividend of $1.62, representing a significant yield.
• Institutional investors have notably increased their stakes in Diageo, with The Manufacturers Life Insurance Company raising its stake by an extraordinary 72,871.7% in the last quarter.

Diageo plc (NYSE:DEO - Get Free Report) has been assigned an average rating of "Hold" from the seven research firms that are currently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and three have issued a buy recommendation on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $129.00.

Separately, The Goldman Sachs Group raised shares of Diageo from a "sell" rating to a "neutral" rating in a report on Thursday, August 7th.

Institutional Trading of Diageo

Several institutional investors and hedge funds have recently modified their holdings of DEO. The Manufacturers Life Insurance Company increased its stake in shares of Diageo by 72,871.7% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,568,162 shares of the company's stock worth $158,133,000 after purchasing an additional 1,566,013 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Diageo by 3.1% during the 1st quarter. Envestnet Asset Management Inc. now owns 1,441,300 shares of the company's stock worth $151,034,000 after purchasing an additional 42,740 shares in the last quarter. Confluence Investment Management LLC increased its stake in shares of Diageo by 14.0% during the 2nd quarter. Confluence Investment Management LLC now owns 1,350,826 shares of the company's stock worth $136,217,000 after purchasing an additional 165,839 shares in the last quarter. Orbis Allan Gray Ltd increased its stake in shares of Diageo by 236.6% during the 2nd quarter. Orbis Allan Gray Ltd now owns 1,157,991 shares of the company's stock worth $116,772,000 after purchasing an additional 813,973 shares in the last quarter. Finally, Raymond James Financial Inc. increased its stake in shares of Diageo by 7.2% during the 2nd quarter. Raymond James Financial Inc. now owns 1,146,369 shares of the company's stock worth $115,600,000 after purchasing an additional 76,802 shares in the last quarter. Hedge funds and other institutional investors own 8.97% of the company's stock.

Diageo Stock Down 1.8%

DEO stock opened at $93.72 on Friday. The company has a market cap of $52.14 billion, a P/E ratio of 13.68, a P/E/G ratio of 3.39 and a beta of 0.59. Diageo has a 52 week low of $93.62 and a 52 week high of $142.73. The company's 50-day moving average price is $105.98 and its 200 day moving average price is $106.97. The company has a current ratio of 1.63, a quick ratio of 0.64 and a debt-to-equity ratio of 1.64.

Diageo Increases Dividend

The business also recently disclosed a semi-annual dividend, which will be paid on Thursday, December 4th. Investors of record on Friday, October 17th will be issued a dividend of $2.5192 per share. This is an increase from Diageo's previous semi-annual dividend of $1.62. This represents a yield of 370.0%. The ex-dividend date of this dividend is Friday, October 17th. Diageo's payout ratio is presently 46.42%.

Diageo Company Profile

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.

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