Hsbc Holdings PLC Sells 99,684 Shares of Diageo plc $DEO

Key Points

• Hsbc Holdings PLC drastically reduced its stake in Diageo plc by 97.8% in the first quarter, selling 99,684 shares and retaining only 2,294 shares valued at approximately $240,000.
• Diageo recently declared a boosted semi-annual dividend of $2.5192, payable on December 4th, significantly up from the previous $1.62, with a dividend yield of 370.0%.
• Analysts have mixed views on Diageo, with Goldman Sachs upgrading it to a "neutral" rating, while Morgan Stanley maintained an "underweight" rating, resulting in an overall consensus rating of "Hold."

Hsbc Holdings PLC cut its holdings in shares of Diageo plc (NYSE:DEO - Free Report) by 97.8% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 2,294 shares of the company's stock after selling 99,684 shares during the period. Hsbc Holdings PLC's holdings in Diageo were worth $240,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Orion Capital Management LLC bought a new stake in Diageo during the fourth quarter worth $25,000. Perkins Coie Trust Co bought a new stake in Diageo during the first quarter worth $27,000. Barrett & Company Inc. bought a new stake in Diageo during the first quarter worth $27,000. Abound Financial LLC bought a new position in shares of Diageo in the 1st quarter valued at $27,000. Finally, Opal Wealth Advisors LLC bought a new position in shares of Diageo in the 1st quarter valued at $30,000. 8.97% of the stock is currently owned by institutional investors.

Diageo Trading Up 0.4%

Diageo stock traded up $0.42 during trading hours on Friday, reaching $110.16. 858,906 shares of the company's stock were exchanged, compared to its average volume of 1,012,168. 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's 50 day simple moving average is $107.02 and its 200 day simple moving average is $107.99. Diageo plc has a twelve month low of $96.45 and a twelve month high of $142.73. The firm has a market capitalization of $61.29 billion, a PE ratio of 16.08, a PEG ratio of 3.90 and a beta of 0.59.

Diageo Increases Dividend

The firm also recently declared a semi-annual dividend, which will be paid on Thursday, December 4th. Shareholders of record on Friday, October 17th will be issued a dividend of $2.5192 per share. This represents a yield of 370.0%. The ex-dividend date is Friday, October 17th. This is an increase from Diageo's previous semi-annual dividend of $1.62. Diageo's dividend payout ratio (DPR) is 72.55%.

Analyst Ratings Changes

DEO has been the subject of a number of research reports. The Goldman Sachs Group upgraded Diageo from a "sell" rating to a "neutral" rating in a research note on Thursday, August 7th. Morgan Stanley reiterated an "underweight" rating on shares of Diageo in a research report on Monday, May 12th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Diageo presently has a consensus rating of "Hold" and a consensus target price of $129.00.

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.