Short Interest in Diageo plc (NYSE:DEO) Declines By 25.3%

Key Points

• Short interest in Diageo plc decreased by 25.3% in September, with 1,330,000 shares sold short compared to 1,780,000 shares at the end of August.
• Diageo announced a semi-annual dividend of $2.5192, increasing from the previous dividend of $1.62, and representing a yield of 370.0%.
• The company currently has an average rating of "Hold" from analysts, with a revised average price target of $119.00, following mixed reviews from major research firms.

Diageo plc (NYSE:DEO - Get Free Report) saw a large decline in short interest in September. As of September 15th, there was short interest totaling 1,330,000 shares, a decline of 25.3% from the August 31st total of 1,780,000 shares. Approximately 0.2% of the company's shares are sold short. Based on an average trading volume of 1,280,000 shares, the days-to-cover ratio is presently 1.0 days. Based on an average trading volume of 1,280,000 shares, the days-to-cover ratio is presently 1.0 days. Approximately 0.2% of the company's shares are sold short.

Diageo Stock Performance

Shares of Diageo stock opened at $94.36 on Tuesday. Diageo has a one year low of $93.42 and a one year high of $139.96. The company has a market cap of $52.50 billion, a PE ratio of 13.78, a P/E/G ratio of 3.45 and a beta of 0.58. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.64 and a current ratio of 1.63. The business has a 50-day simple moving average of $104.66 and a 200-day simple moving average of $106.33.

Diageo Increases Dividend

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

Analyst Upgrades and Downgrades

Several research firms have weighed in on DEO. Bank of America dropped their target price on Diageo from $117.00 to $109.00 and set a "buy" rating for the company in a research report on Friday, September 26th. The Goldman Sachs Group raised Diageo from a "sell" rating to a "neutral" rating in a research report on Thursday, August 7th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Diageo in a research report on Saturday, September 27th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Diageo presently has an average rating of "Hold" and an average price target of $119.00.

Hedge Funds Weigh In On Diageo

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DEO. Brighton Jones LLC acquired a new position in Diageo in the fourth quarter valued at approximately $202,000. Rhumbline Advisers lifted its stake in Diageo by 6.7% in the first quarter. Rhumbline Advisers now owns 4,783 shares of the company's stock valued at $501,000 after buying an additional 299 shares during the last quarter. NBC Securities Inc. lifted its stake in Diageo by 109,700.0% in the first quarter. NBC Securities Inc. now owns 1,098 shares of the company's stock valued at $115,000 after buying an additional 1,097 shares during the last quarter. Merit Financial Group LLC lifted its stake in Diageo by 151.2% in the first quarter. Merit Financial Group LLC now owns 5,024 shares of the company's stock valued at $526,000 after buying an additional 3,024 shares during the last quarter. Finally, Patriot Financial Group Insurance Agency LLC lifted its stake in Diageo by 21.8% in the first quarter. Patriot Financial Group Insurance Agency LLC now owns 8,794 shares of the company's stock valued at $922,000 after buying an additional 1,576 shares during the last quarter. 8.97% of the stock is owned by institutional investors and hedge funds.

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.

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