Geo Capital Gestora de Recursos Ltd Invests $2.02 Million in Diageo plc $DEO

Key Points

• Geo Capital Gestora de Recursos Ltd purchased 19,233 shares of Diageo plc, valued at approximately $2,015,000, making it the company’s 14th largest holding.
• Diageo announced an increase in its semi-annual dividend to $2.5192 per share, a substantial rise from the previous amount of $1.62.
• Research analysts have mixed ratings for Diageo, with four suggesting a Buy rating and one assigning a Sell, reflecting a consensus rating of "Hold" with a target price of $129.00.

Geo Capital Gestora de Recursos Ltd purchased a new position in Diageo plc (NYSE:DEO - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 19,233 shares of the company's stock, valued at approximately $2,015,000. Diageo accounts for about 2.8% of Geo Capital Gestora de Recursos Ltd's investment portfolio, making the stock its 14th biggest position.

Other hedge funds also recently modified their holdings of the company. Orion Capital Management LLC bought a new stake in shares of Diageo in the 4th quarter worth approximately $25,000. BNP Paribas bought a new stake in shares of Diageo in the 4th quarter worth approximately $32,000. Measured Risk Portfolios Inc. bought a new stake in shares of Diageo in the 4th quarter worth approximately $32,000. Perkins Coie Trust Co bought a new stake in shares of Diageo in the 1st quarter worth approximately $27,000. Finally, Barrett & Company Inc. bought a new stake in shares of Diageo in the 1st quarter worth approximately $27,000. Institutional investors own 8.97% of the company's stock.

Wall Street Analyst Weigh In

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

Diageo Stock Performance

DEO stock traded up $0.9830 during midday trading on Friday, reaching $115.3830. 1,065,900 shares of the company's stock traded hands, compared to its average volume of 1,557,562. The company has a 50-day moving average price of $104.99 and a two-hundred day moving average price of $107.80. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.67 and a current ratio of 1.63. Diageo plc has a 52 week low of $96.45 and a 52 week high of $142.73. The firm has a market capitalization of $64.19 billion, a PE ratio of 16.84, a price-to-earnings-growth ratio of 4.08 and a beta of 0.53.

Diageo Increases Dividend

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

About Diageo

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.