Diageo plc $DEO Shares Sold by ABC Arbitrage SA

Key Points

• ABC Arbitrage SA reduced its Diageo stake by 9.6% in the first quarter, selling 53,547 shares and leaving it with 506,836 shares worth about $37.7 million. Diageo remained its second-largest holding, representing about 5% of the fund’s portfolio.
• Diageo shares were trading slightly higher, opening at $82.54, with the stock sitting well below its 52-week high of $116.41 but above its low of $72.45. The company’s leverage remains notable, with a debt-to-equity ratio of 1.53.
• Analysts are mixed but increasingly constructive on Diageo, with recent upgrades from TD Cowen and Deutsche Bank helping balance earlier cautious calls. The stock currently carries a consensus Hold rating and an average price target of $106.25.

ABC Arbitrage SA lessened its holdings in Diageo plc (NYSE:DEO - Free Report) by 9.6% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 506,836 shares of the company's stock after selling 53,547 shares during the quarter. Diageo makes up about 5.0% of ABC Arbitrage SA's holdings, making the stock its 2nd largest position. ABC Arbitrage SA owned 0.09% of Diageo worth $37,734,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Spire Wealth Management raised its position in shares of Diageo by 123.6% during the 4th quarter. Spire Wealth Management now owns 322 shares of the company's stock worth $28,000 after acquiring an additional 178 shares in the last quarter. Sound Income Strategies LLC lifted its position in shares of Diageo by 8,000.0% during the 4th quarter. Sound Income Strategies LLC now owns 324 shares of the company's stock worth $29,000 after buying an additional 320 shares during the last quarter. Flagship Harbor Advisors LLC purchased a new stake in shares of Diageo during the 4th quarter worth approximately $30,000. Q Fund Management Hong Kong Ltd acquired a new position in shares of Diageo in the 4th quarter valued at $43,000. Finally, Rialto Wealth Management LLC acquired a new position in shares of Diageo in the 4th quarter valued at $49,000. 8.97% of the stock is currently owned by institutional investors and hedge funds.

Diageo Trading Up 0.6%

Shares of DEO opened at $82.54 on Tuesday. The company has a current ratio of 1.60, a quick ratio of 0.71 and a debt-to-equity ratio of 1.53. Diageo plc has a fifty-two week low of $72.45 and a fifty-two week high of $116.41. The firm has a 50-day simple moving average of $81.98 and a 200-day simple moving average of $84.04.

Analysts Set New Price Targets

DEO has been the topic of several research analyst reports. TD Cowen upgraded shares of Diageo from a "hold" rating to a "buy" rating and lifted their price target for the stock from $88.00 to $93.00 in a research note on Thursday, June 25th. BNP Paribas Exane upgraded shares of Diageo from an "underperform" rating to a "neutral" rating in a research note on Wednesday, March 25th. Zacks Research raised Diageo from a "strong sell" rating to a "hold" rating in a report on Monday, March 23rd. Deutsche Bank Aktiengesellschaft upgraded Diageo from a "hold" rating to a "buy" rating in a research report on Tuesday, March 31st. Finally, Loop Capital set a $99.00 target price on Diageo in a report on Thursday, June 18th. Six investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $106.25.

About Diageo

Diageo plc is a global producer, marketer and distributor of alcoholic beverages, headquartered in London, England. The company was created through the 1997 merger of Guinness plc and Grand Metropolitan plc and is publicly traded on multiple exchanges, including the New York Stock Exchange NYSE: DEO and the London Stock Exchange. Diageo operates a worldwide business, selling products in a broad range of markets across the Americas, Europe, Africa, Asia and Latin America.

Diageo's core activities cover the production, marketing and sale of a diverse portfolio of spirits, beer and liqueurs.

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