Diageo plc $DEO Shares Sold by Royal Bank of Canada

Key Points

• Royal Bank of Canada reduced its stake in Diageo plc by 5.3% during the first quarter, now holding approximately 1.46 million shares valued at around $152.8 million.
• Diageo recently announced a semi-annual dividend increase to $2.5192 per share, significantly up from the previous $1.62, with a payout ratio of 46.42%.
• Analysts have a mixed outlook on Diageo, with a consensus rating of "Hold" and a target price of $129.00, indicating varied opinions on the stock's future performance.

Royal Bank of Canada trimmed its position in shares of Diageo plc (NYSE:DEO - Free Report) by 5.3% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,458,622 shares of the company's stock after selling 82,178 shares during the quarter. Royal Bank of Canada owned approximately 0.26% of Diageo worth $152,848,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the company. Envestnet Asset Management Inc. increased its holdings in shares of Diageo by 3.1% during the 1st quarter. Envestnet Asset Management Inc. now owns 1,441,300 shares of the company's stock valued at $151,034,000 after purchasing an additional 42,740 shares in the last quarter. Confluence Investment Management LLC increased its holdings in shares of Diageo by 0.7% during the 1st quarter. Confluence Investment Management LLC now owns 1,184,987 shares of the company's stock valued at $124,175,000 after purchasing an additional 8,521 shares in the last quarter. Raymond James Financial Inc. increased its holdings in shares of Diageo by 9.8% during the 1st quarter. Raymond James Financial Inc. now owns 1,069,567 shares of the company's stock valued at $112,080,000 after purchasing an additional 95,037 shares in the last quarter. JARISLOWSKY FRASER Ltd increased its holdings in shares of Diageo by 0.6% during the 4th quarter. JARISLOWSKY FRASER Ltd now owns 623,534 shares of the company's stock valued at $79,270,000 after purchasing an additional 3,919 shares in the last quarter. Finally, LPL Financial LLC increased its holdings in shares of Diageo by 2.2% during the 1st quarter. LPL Financial LLC now owns 434,735 shares of the company's stock valued at $45,556,000 after purchasing an additional 9,306 shares in the last quarter. 8.97% of the stock is owned by hedge funds and other institutional investors.

Diageo Stock Performance

DEO stock traded down $3.53 on Monday, hitting $106.72. The company's stock had a trading volume of 310,669 shares, compared to its average volume of 1,104,762. The firm has a 50 day moving average of $107.02 and a two-hundred day moving average of $107.99. Diageo plc has a 1 year low of $96.45 and a 1 year high of $142.73. The stock has a market cap of $59.37 billion, a price-to-earnings ratio of 15.59, a price-to-earnings-growth ratio of 3.90 and a beta of 0.59. The company has a current ratio of 1.63, a quick ratio of 0.64 and a debt-to-equity ratio of 1.64.

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 issued a dividend of $2.5192 per share. This is a boost from Diageo's previous semi-annual dividend of $1.62. This represents a dividend yield of 370.0%. The ex-dividend date of this dividend is Friday, October 17th. Diageo's dividend payout ratio is 46.42%.

Analyst Ratings Changes

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

Diageo 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.