Diageo plc $DEO Shares Sold by DAVENPORT & Co LLC

DAVENPORT & Co LLC decreased its position in Diageo plc (NYSE:DEO) by 13.6% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 59,821 shares of the company’s stock after selling 9,385 shares during the period. DAVENPORT & Co LLC’s holdings in Diageo were worth $5,161,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in the company. Equity Investment Corp bought a new position in Diageo in the 3rd quarter worth approximately $92,970,000. Federated Hermes Inc. raised its stake in Diageo by 7.2% during the 3rd quarter. Federated Hermes Inc. now owns 726,578 shares of the company’s stock valued at $69,337,000 after acquiring an additional 48,909 shares in the last quarter. Osaic Holdings Inc. raised its stake in Diageo by 42.2% during the 2nd quarter. Osaic Holdings Inc. now owns 99,998 shares of the company’s stock valued at $10,099,000 after acquiring an additional 29,674 shares in the last quarter. Confluence Investment Management LLC boosted its position in Diageo by 0.9% during the 3rd quarter. Confluence Investment Management LLC now owns 1,363,504 shares of the company’s stock worth $130,119,000 after acquiring an additional 12,678 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its position in Diageo by 353.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 717,740 shares of the company’s stock worth $72,377,000 after acquiring an additional 559,547 shares during the period. Institutional investors and hedge funds own 8.97% of the company’s stock.

Diageo News Roundup

Here are the key news stories impacting Diageo this week:

• Positive Sentiment: Diageo agreed to sell its Royal Challengers Bengaluru (RCB) IPL/WPL franchise to a Blackstone-backed consortium for about $1.8 billion, a large one-off disposal that will generate significant cash for the group and was the outcome of a strategic review. Article Title
• Positive Sentiment: Analysts estimate Diageo could net more than $1 billion from the sale after the United Spirits ownership structure — a sizable cash inflow that can be used to pay down the group’s elevated debt or fund other priorities. Article Title
• Positive Sentiment: UBS called the sale a “rich valuation” (reported multiple ~54x EBITDA) and said the timing — after RCB’s recent success — makes the transaction strategically helpful for the new CEO to chip away at Diageo’s debt burden. Article Title
• Positive Sentiment: Several broker moves reflect reduced near-term downside risk: BNP Paribas Exane upgraded Diageo from “underperform” to “neutral,” and Zacks moved it from “strong sell” to “hold,” which may steady sentiment after the disposal news. Finviz Note Zacks Note
• Negative Sentiment: Offsetting the positive cash story, at least one outlet reports a downgrade from “buy” to “hold,” reflecting lingering concerns about Diageo’s valuation, leverage and near-term performance that could pressure the share price despite the sale. Article Title

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Royal Bank Of Canada raised Diageo from a “sector perform” rating to an “outperform” rating in a report on Tuesday, January 6th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Diageo in a report on Wednesday, January 21st. BNP Paribas Exane upgraded shares of Diageo from an “underperform” rating to a “neutral” rating in a research report on Wednesday. Zacks Research raised shares of Diageo from a “strong sell” rating to a “hold” rating in a research note on Monday. Finally, Argus upgraded shares of Diageo to a “hold” rating in a research report on Tuesday, March 10th. Five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Diageo presently has an average rating of “Hold” and a consensus target price of $116.50.

Diageo Stock Down 0.4%

Shares of NYSE DEO opened at $73.72 on Friday. The stock has a fifty day moving average price of $88.00 and a two-hundred day moving average price of $91.16. The company has a quick ratio of 0.71, a current ratio of 1.60 and a debt-to-equity ratio of 1.53. Diageo plc has a 1 year low of $72.45 and a 1 year high of $116.69.

Diageo Announces Dividend

The company also recently disclosed a dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, April 17th will be issued a $0.80 dividend. The ex-dividend date is Friday, April 17th. This represents a dividend yield of 207.0%.

Diageo Company Profile

Diageo plc is a global producer, marketer and distributor of alcoholic beverages, headquartered in London, England. The company was created through the 1997 merger of Guinness plc and Grand Metropolitan plc and is publicly traded on multiple exchanges, including the New York Stock Exchange (NYSE: DEO) and the London Stock Exchange. Diageo operates a worldwide business, selling products in a broad range of markets across the Americas, Europe, Africa, Asia and Latin America.

Diageo’s core activities cover the production, marketing and sale of a diverse portfolio of spirits, beer and liqueurs.