On June 16, 2023, Cypress Asset Management Inc. TX announced its latest filing with the Securities and Exchange Commission, revealing that it had reduced its stake in shares of Diageo plc by 3.9% in the fourth quarter. With the completion of this sale, Cypress Asset Management’s holdings in Diageo were worth $5,088,000 at the period’s end.
According to reports from HoldingsChannel.com, numerous hedge funds hold DEO shares and have made recent insider trades. What does this mean for investors? Is it a sign that they should buy or sell DEO stocks?
Diageo is a globally recognized producer and distributor of alcoholic beverages. Apart from the iconic Johnnie Walker brand of Scotch whisky, other acclaimed brands in their impressive portfolio include Guinness stout beer, Smirnoff vodka, and Captain Morgan rum.
It was reported that Cypress Asset Management Inc’s holdings account for approximately 1.8% of its investment portfolio holdings – which is not an insignificant percentage given Diageo’s market value. In fact it is their sixteen biggest holding out of a large universe of investable options.
Despite selling some shares recently during an overall bullish market trendline for many sectors including consumer goods some speculate that it could be a possible indication that the fund managers expect to see the stock weaken in future quarters.
Diageo has experienced fluctuations throughout the year with swings from both highs and lows. Yet on Friday (June 16th) when Diageo started at $173.90 according to reports as per their July Flash Update which takes into account real-time data , there has been improvement ; with the company now boasting a fifty-day moving average at around $179.70 mark whilst its two-hundred day moving average hovers slightly above at $179.08 . Conversely over course last twelve months high and lows show signs more volatility within this band; reaching heights up towards $194.04 and lows of $160.09.
It is important to also note that the company has a debt-to-equity ratio of 1.63, a quick ratio of 0.78 and a current ratio of 1.57, which by some metrics suggest greater stability and good liquidity across assets.
Overall, investors should analyze these factors carefully when making their investment decisions about Diageo along with any larger macroeconomic forces which may in turn impact sentiment on consumer goods and specific brands within the sector.
[bs_slider_forecast ticker=”DEO”]
Institutional Investors Show Mixed Interest in Diageo Plc Amidst Shifts in Stock Positions and Analyst Ratings
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”DEO” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Institutional investors continue to show interest in Diageo Plc, with recent reports indicating that a number of companies have increased their stake in the alcohol beverage producer, while others have significantly reduced theirs. Wealthspire Advisors LLC, for instance, boosted its stake by 1.3% during Q3 2022 after purchasing an additional 109 shares worth $1.43 million, while Clearbridge Investments LLC raised its position by 22.1% in Q4 2022 after purchasing 275,377 shares worth $270.82 million and now owns 1,519,860 of Diageo’s stocks.
However, some organizations are moving away from Diageo Plc investments; StockNews.com recently downgraded the company’s shares from “Buy” to “Hold,” while Jefferies Financial Group shifted its rating from “Buy” to “Hold.” Barclays also decreased the target price on Diageo’s stock from GBX 4,890 ($61.19) to GBX 4,720 ($59.06), and The Goldman Sachs Group cut its rating from “Buy” to “Neutral.”
Despite this mixed feedback from analysts and investors alike, there is no denying that Diageo has managed to establish a strong brand identity and global presence through its impressive line-up of spirits and wine brands such as Johnnie Walker whiskey, Smirnoff vodka and Guinness beer.
The company is headquartered in London and currently operates in North America; Europe and Turkey; Africa; Latin America and the Caribbean; Asia Pacific; ISC; and Corporate & Other sectors. Its commitment to sustainability practices has also made it a recognized leader for the production of renewable packaging solutions that reduce waste and conserve essential natural resources.
As of June 16th, 2023 Bloomberg data reveals that average ratings for Diageo are currently at a “Hold” level with an average target price of $3,964.44. Investors eagerly await future updates on the company’s progress in both business and sustainability practices as it continues to attract mixed reviews from the investing community.
