Published on September 10, 2023
Investment firm Douglass Winthrop Advisors LLC has recently reduced its holdings in Diageo plc (NYSE:DEO) by 4.0% in the first quarter of this year. According to the company’s latest disclosure with the U.S. Securities and Exchange Commission (SEC), Douglass Winthrop Advisors LLC now owns 19,348 shares of Diageo stock, having sold off 796 shares during the quarter. At the end of the reporting period, the value of their holdings was estimated to be $3,505,000.
Headquartered in London, Diageo is a global leader in the production, marketing, and sale of alcoholic beverages. The company boasts an extensive portfolio that includes scotch, gin, vodka, rum, liqueur, wine, tequila, Chinese white spirits, cachaça, brandy, as well as beer such as cider and flavored malt beverages. Additionally, Diageo offers a range of whiskies including Canadian, Irish, American-made foreign liquor whiskies from India. They also provide ready-to-drink options and non-alcoholic products.
In further news shared by the company recently; Diageo announced its semi-annual dividend payment which is set to be paid on Tuesday October 17th. Shareholders who were recorded on Friday August 25th will receive a dividend amounting to $2.5089 per share. It is notable that this is an increase compared to Diageo’s previous semi-annual dividend of $1.43 per share. The newly declared dividend represents a yield of 2.4%. The ex-dividend date for this payment is Thursday August 24th.
These recent developments indicate noteworthy changes within Douglass Winthrop Advisors LLC’s holdings in Diageo plc and also showcase strong financial prospects for shareholders due to the increased dividend payout rate compared to previous bouts.
Investor Interest and Activity Surrounding Diageo plc: Hedge Funds and Institutional Investors Increase Stakes
Diageo plc, a global leader in the alcoholic beverages industry, has been attracting attention from hedge funds and institutional investors. Recent filings have revealed that several investors have either increased or reduced their stakes in Diageo, indicating a level of interest and activity surrounding the company.
One notable investor, Moneta Group Investment Advisors LLC, raised its stake in Diageo by an astonishing 98,968.5% during the fourth quarter. This increase amounted to an additional 2,021,926 shares, bringing their total ownership to 2,023,969 shares valued at $360,651,000. Similarly, Clearbridge Investments LLC raised its stake by 56.9% in the first quarter by acquiring an additional 864,824 shares worth $432,057,000.
In addition to these investors, Westfield Capital Management Co. LP also joined the fray with a new stake valued at approximately $89,331,000 during the first quarter. Furthermore, Morgan Stanley and Bank of America Corp DE also amplified their positions by purchasing additional shares during previous quarters.
These considerable investments by various institutional players demonstrate confidence in Diageo’s potential for growth and value appreciation. However, it is important to note that while these investors have shown interest in Diageo through their significant holdings or purchases of the company’s stock recently; overall ownership among hedge funds and institutional investors accounts for only 8.97% of the total stock.
On September 10th trading session Diageo’s stock witnessed a minor increment of $0.87 reaching $161.36 per share with a trading volume of 265,062 shares. This movement may seem slight but considering the average volume of around 379k shares traded per day it could be indicative of ongoing market speculation regarding future company performance.
When evaluating Diageo’s financial position based on liquidity ratios one finds that its quick ratio stands at 0.62 and its current ratio stands at 1.63 implying a cautionary aspect in terms of the company’s ability to meet short-term obligations with cash and other liquid assets. Furthermore, Diageo carries a debt-to-equity ratio of 1.67 which favors the company’s reliance on debt financing for growth.
Diageo plc, in its essence, is involved in the production, marketing, and sale of alcoholic beverages worldwide. The company boasts an extensive portfolio encompassing scotch, gin, vodka, rum, liqueur, wine, tequila, brandy as well as beer including cider and flavored malt beverages. Its offerings also include Canadian, Irish, American and Indian-Made Foreign Liquor whiskies along with ready-to-drink beverages and non-alcoholic products.
It is essential to acknowledge that Diageo has not remained unnoticed within the world of research analysts. Analyst teams have been active in assessing the future prospects of Diageo and providing insights through various reports. For instance, Barclays recently reduced their price objective from GBX 4,720 ($59.61) to GBX 4,440 ($56.07). On the other hand Deutsche Bank Aktiengesellschaft raised their price objective on Diageo from GBX 2,920 ($36.88) to GBX 2,950 ($37.26). Taking into account these varying judgments by analysts it becomes clear that Diageo’s stock is subject to a divergence of opinions regarding its underlying value or perceived potential.
According to Bloomberg data as of September 10th this year your average analyst opinion yields a “Hold” rating on Diageo stock while there are one buy rating and five hold ratings alongside one sole sell rating disclosed for public scrutiny.
Taking all these factors into consideration allows investors an opportunity for further analysis regarding the stock’s potential trajectory based on publicly available information however risk assessments using such metrics warrant conservative investment strategies. For the full report on Diageo, interested parties are recommended to review our latest stock reports.