Diageo plc (NYSE:DEO) Sees Significant Decrease in Short Interest

Key Points

• Diageo plc experienced a 29.0% decrease in short interest in September, totaling 943,800 shares, with approximately 0.2% of its shares sold short.
• The company will pay a semi-annual dividend of $2.5192 per share on December 4th, up from its previous dividend of $1.62, resulting in a yield of 516.0%.
• Analysts have varied opinions on Diageo, with a consensus rating of "Hold" and an average price target of $119.00, following several recent upgrades and downgrades.

Diageo plc (NYSE:DEO - Get Free Report) was the target of a significant drop in short interest during the month of September. As of September 30th, there was short interest totaling 943,800 shares, a drop of 29.0% from the September 15th total of 1,330,000 shares. Approximately 0.2% of the shares of the stock are sold short. Based on an average trading volume of 1,360,000 shares, the short-interest ratio is presently 0.7 days. Based on an average trading volume of 1,360,000 shares, the short-interest ratio is presently 0.7 days. Approximately 0.2% of the shares of the stock are sold short.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Twin Peaks Wealth Advisors LLC purchased a new position in shares of Diageo during the 2nd quarter worth about $26,000. Abound Financial LLC purchased a new position in shares of Diageo during the 1st quarter worth about $27,000. Cheviot Value Management LLC purchased a new position in shares of Diageo during the 1st quarter worth about $31,000. Truvestments Capital LLC purchased a new position in shares of Diageo during the 1st quarter worth about $30,000. Finally, TruNorth Capital Management LLC purchased a new position in shares of Diageo in the 1st quarter worth about $30,000. 8.97% of the stock is currently owned by hedge funds and other institutional investors.

Diageo Trading Down 1.0%

Shares of DEO stock traded down $0.94 during trading hours on Thursday, hitting $96.88. 1,918,599 shares of the company were exchanged, compared to its average volume of 1,164,090. The firm has a market cap of $53.92 billion, a PE ratio of 14.14, a PEG ratio of 4.34 and a beta of 0.58. Diageo has a 1 year low of $93.42 and a 1 year high of $135.16. 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 firm has a fifty day moving average of $102.59 and a 200 day moving average of $105.57.

Diageo Increases Dividend

The business also recently disclosed a semi-annual dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, October 17th will be issued a dividend of $2.5192 per share. This represents a dividend yield of 516.0%. The ex-dividend date is Friday, October 17th. This is an increase from Diageo's previous semi-annual dividend of $1.62. Diageo's payout ratio is currently 72.41%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on DEO. Bank of America lowered their price target on shares of Diageo from $117.00 to $109.00 and set a "buy" rating for the company in a report on Friday, September 26th. The Goldman Sachs Group upgraded shares of Diageo from a "sell" rating to a "neutral" rating in a research report on Thursday, August 7th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Diageo in a report on Wednesday, October 8th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Diageo has a consensus rating of "Hold" and an average price target of $119.00.

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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