Orbis Allan Gray Ltd Purchases New Stake in Diageo plc $DEO

Key Points

• Orbis Allan Gray Ltd has acquired a new stake in Diageo plc, purchasing 344,018 shares valued at approximately $36 million, representing about 0.06% of the company.
• Diageo recently announced a boost in its semi-annual dividend to $2.5192 per share, with a dividend yield of 370.0%, up from the previous $1.62.
• Analysts have mixed views on Diageo's stock, with Goldman Sachs upgrading it to a "neutral" rating, while the consensus rating remains at "Hold" with a target price of $129.00.

Orbis Allan Gray Ltd acquired a new stake in Diageo plc (NYSE:DEO - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 344,018 shares of the company's stock, valued at approximately $36,050,000. Orbis Allan Gray Ltd owned about 0.06% of Diageo as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also bought and sold shares of the company. Orion Capital Management LLC bought a new position in Diageo during the fourth quarter worth $25,000. BNP Paribas bought a new position in Diageo during the fourth quarter worth $32,000. Measured Risk Portfolios Inc. bought a new position in Diageo during the fourth quarter worth $32,000. Perkins Coie Trust Co bought a new position in Diageo during the first quarter worth $27,000. Finally, Barrett & Company Inc. bought a new position in Diageo during the first quarter worth $27,000. 8.97% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

DEO has been the topic of several research analyst reports. Morgan Stanley reissued an "underweight" rating on shares of Diageo in a research note on Monday, May 12th. The Goldman Sachs Group upgraded 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 issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $129.00.

Diageo Stock Down 0.6%

Shares of DEO stock traded down $0.66 on Wednesday, hitting $110.04. The stock had a trading volume of 587,123 shares, compared to its average volume of 1,112,945. The business has a 50 day moving average of $106.44 and a 200 day moving average of $107.93. The stock has a market cap of $61.22 billion, a price-to-earnings ratio of 16.06, a price-to-earnings-growth ratio of 3.96 and a beta of 0.59. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.63 and a quick ratio of 0.64. Diageo plc has a 12-month low of $96.45 and a 12-month high of $142.73.

Diageo Increases Dividend

The company also recently announced 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. This is an increase 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 is currently 46.42%.

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.