Confluence Investment Management LLC Reduces Stake in Diageo plc $DEO

Key Points

• Confluence Investment Management cut its Diageo stake by 87% in the third quarter, selling 676,044 shares and retaining 100,892 shares valued at approximately $8.6 million.
• Institutional investor sentiment was mixed, while Wall Street analysts maintained an overall “Hold” rating with an average price target of $105.33.
• Diageo shares recently traded at $84.09, and the company announced a $1.20 per-share dividend payable December 3 to shareholders of record on October 16.

Confluence Investment Management LLC reduced its position in Diageo plc (NYSE:DEO - Free Report) by 87.0% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 100,892 shares of the company's stock after selling 676,044 shares during the period. Confluence Investment Management LLC's holdings in Diageo were worth $8,636,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in DEO. First Trust Advisors LP increased its holdings in Diageo by 12.0% in the 1st quarter. First Trust Advisors LP now owns 463,572 shares of the company's stock worth $34,513,000 after buying an additional 49,504 shares in the last quarter. CORDA Investment Management LLC. lifted its stake in Diageo by 14.5% during the 1st quarter. CORDA Investment Management LLC. now owns 169,084 shares of the company's stock valued at $12,588,000 after acquiring an additional 21,446 shares during the period. Gamco Investors INC. ET AL boosted its holdings in shares of Diageo by 10.2% during the 1st quarter. Gamco Investors INC. ET AL now owns 186,176 shares of the company's stock valued at $13,861,000 after acquiring an additional 17,241 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Diageo by 53.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,372,808 shares of the company's stock valued at $102,124,000 after acquiring an additional 477,999 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its position in Diageo by 9.5% during the first quarter. Bank of New York Mellon Corp now owns 160,477 shares of the company's stock valued at $11,948,000 after purchasing an additional 13,928 shares during the period. 8.97% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

DEO has been the subject of a number of research reports. Loop Capital set a $99.00 target price on shares of Diageo in a research note on Thursday, June 18th. Zacks Research upgraded Diageo from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 25th. Weiss Ratings reissued a "sell (d)" rating on shares of Diageo in a report on Friday, July 17th. UBS Group reissued a "neutral" rating on shares of Diageo in a research report on Thursday, August 27th. Finally, TD Cowen restated a "buy" rating on shares of Diageo in a research note on Monday, August 10th. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $105.33.

Diageo Stock Performance

Shares of DEO stock traded down $1.51 during trading hours on Thursday, reaching $84.09. 654,996 shares of the company traded hands, compared to its average volume of 1,475,438. The firm has a 50-day moving average price of $89.67 and a 200 day moving average price of $83.54. The company has a quick ratio of 0.62, a current ratio of 1.60 and a debt-to-equity ratio of 1.53. Diageo plc has a 12-month low of $72.45 and a 12-month high of $102.74.

Diageo Dividend Announcement

The company also recently disclosed a dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Friday, October 16th will be paid a $1.20 dividend. The ex-dividend date of this dividend is Friday, October 16th. This represents a dividend yield of 252.0%.

Diageo Profile

Diageo plc is a global beverage alcohol company headquartered in London, England. The company produces, markets and distributes a broad portfolio of spirits, beer and ready-to-drink beverages through a collection of internationally recognized brands.

Its portfolio includes Johnnie Walker, Crown Royal, Buchanan's and Talisker whiskies; Smirnoff, Cîroc and Ketel One vodkas; Tanqueray and Gordon's gins; Baileys liqueur; Don Julio and Casamigos tequila; Captain Morgan rum; and Guinness beer.

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