Diageo plc (NYSE:DEO) Sees Large Growth in Short Interest

Key Points

• Diageo plc experienced a significant increase in short interest of 63.1% in August, totaling 1,500,000 shares by August 15th, indicating a rise in bearish sentiment among investors.
• The company has upgraded its dividend to $2.5192 per share after previously distributing $1.62, with a payout ratio of 46.42% and an upcoming payment date of December 4th.
• Analysts hold a consensus rating of "Hold" for Diageo's stock, with a price target of $129.00, while some recent upgrades and downgrades have been issued by major brokerages.

Diageo plc (NYSE:DEO - Get Free Report) was the recipient of a large increase in short interest during the month of August. As of August 15th, there was short interest totaling 1,500,000 shares, anincreaseof63.1% from the July 31st total of 919,700 shares. Based on an average daily volume of 1,180,000 shares, the days-to-cover ratio is presently 1.3 days. Approximately0.3% of the shares of the stock are short sold. Approximately0.3% of the shares of the stock are short sold. Based on an average daily volume of 1,180,000 shares, the days-to-cover ratio is presently 1.3 days.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on DEO. Morgan Stanley reiterated an "underweight" rating on shares of Diageo in a research report on Monday, May 12th. The Goldman Sachs Group upgraded Diageo from a "sell" rating to a "neutral" rating in a research report on Thursday, August 7th. Four 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's stock. According to MarketBeat, Diageo currently has a consensus rating of "Hold" and a consensus price target of $129.00.

Institutional Investors Weigh In On Diageo

Large investors have recently added to or reduced their stakes in the stock. The Manufacturers Life Insurance Company boosted its holdings in shares of Diageo by 72,871.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,568,162 shares of the company's stock valued at $158,133,000 after purchasing an additional 1,566,013 shares in the last quarter. Orbis Allan Gray Ltd lifted its stake in shares of Diageo by 236.6% in the 2nd quarter. Orbis Allan Gray Ltd now owns 1,157,991 shares of the company's stock valued at $116,772,000 after acquiring an additional 813,973 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Diageo by 353.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 717,740 shares of the company's stock valued at $72,377,000 after acquiring an additional 559,547 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in shares of Diageo by 1,544.5% in the 1st quarter. BNP Paribas Financial Markets now owns 396,676 shares of the company's stock valued at $41,568,000 after acquiring an additional 372,555 shares during the last quarter. Finally, Marshall Wace LLP bought a new position in shares of Diageo in the 2nd quarter valued at $26,851,000. Institutional investors and hedge funds own 8.97% of the company's stock.

Diageo Stock Performance

Shares of Diageo stock traded up $0.42 on Friday, hitting $110.16. The stock had a trading volume of 858,906 shares, compared to its average volume of 1,012,168. Diageo has a twelve month low of $96.45 and a twelve month high of $142.73. The business's 50 day moving average is $107.02 and its two-hundred day moving average is $107.98. The company has a quick ratio of 0.64, a current ratio of 1.63 and a debt-to-equity ratio of 1.64. The stock has a market cap of $61.29 billion, a price-to-earnings ratio of 16.08, a price-to-earnings-growth ratio of 3.89 and a beta of 0.59.

Diageo Increases Dividend

The business also recently declared a semi-annual dividend, which will be paid on Thursday, December 4th. Investors of record on Friday, October 17th will be given 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 dividend payout ratio (DPR) is currently 46.42%.

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.

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