Northwestern Mutual Wealth Management Co. Trims Stake in Diageo plc $DEO

Key Points

• Northwestern Mutual Wealth Management Co. has reduced its stake in Diageo plc by 29.6%, now holding 16,210 shares valued at approximately $1.69 million.
• Diageo has announced a significant increase in its semi-annual dividend to $2.5192, up from $1.62, indicating a robust dividend payout ratio of 46.42%.
• Analyst ratings for Diageo show a tendency towards a "Hold" rating, with an average target price of $129.00.

Northwestern Mutual Wealth Management Co. cut its stake in shares of Diageo plc (NYSE:DEO - Free Report) by 29.6% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 16,210 shares of the company's stock after selling 6,821 shares during the period. Northwestern Mutual Wealth Management Co.'s holdings in Diageo were worth $1,699,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Royal Bank of Canada increased its stake in shares of Diageo by 0.3% in the fourth quarter. Royal Bank of Canada now owns 1,540,800 shares of the company's stock worth $195,883,000 after purchasing an additional 3,876 shares during the period. Envestnet Asset Management Inc. lifted its stake in Diageo by 3.1% in the first quarter. Envestnet Asset Management Inc. now owns 1,441,300 shares of the company's stock valued at $151,034,000 after buying an additional 42,740 shares in the last quarter. Confluence Investment Management LLC raised its holdings in shares of Diageo by 0.7% in the first 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 during the last quarter. Raymond James Financial Inc. grew its position in shares of Diageo by 9.8% in the 1st quarter. Raymond James Financial Inc. now owns 1,069,567 shares of the company's stock valued at $112,080,000 after acquiring an additional 95,037 shares during the period. Finally, Northern Trust Corp increased its stake in shares of Diageo by 39.9% during the fourth quarter. Northern Trust Corp now owns 649,769 shares of the company's stock worth $82,605,000 after purchasing an additional 185,282 shares during the period. Institutional investors own 8.97% of the company's stock.

Analysts Set New Price Targets

DEO has been the subject of several research reports. 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 research note on Monday, May 12th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Diageo currently has a consensus rating of "Hold" and a consensus target price of $129.00.

Diageo Trading Down 0.3%

Shares of DEO stock traded down $0.31 during trading hours on Thursday, reaching $109.71. The company's stock had a trading volume of 484,473 shares, compared to its average volume of 1,109,724. The firm's fifty day simple moving average is $106.64 and its 200 day simple moving average is $107.94. The company has a current ratio of 1.63, a quick ratio of 0.64 and a debt-to-equity ratio of 1.64. The stock has a market capitalization of $61.04 billion, a P/E ratio of 16.02, a P/E/G ratio of 3.96 and a beta of 0.59. Diageo plc has a one year low of $96.45 and a one year high of $142.73.

Diageo Increases Dividend

The business also recently declared a semi-annual dividend, which will be paid on Thursday, December 4th. Stockholders of record on Friday, October 17th will be paid a $2.5192 dividend. 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 is Friday, October 17th. Diageo's dividend payout ratio (DPR) is presently 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.