Diageo PLC (NYSE:DEO) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Estimates have been revised downward for the past few weeks as Diageo has been witnessing dismal top line performance primarily due to unfavorable currency fluctuations as well as declining volumes especially in the North American Spirits and European countries. Moreover, increasing restrictions on alcohol consumption by governments across the world have dented revenue growth. However, its strong brands, its product and geographic diversity, and exposure to faster-growing markets are expected to allow it to grow sales and earnings at healthy rates over the long-term. The company’s cost reduction initiative is on track and expected to boost margins further. Further, its focus on higher priced and higher margin items are expected to help it maintain profit going ahead. However, the company”
Several other equities research analysts have also recently issued reports on the company. Liberum Capital initiated coverage on Diageo PLC in a research note on Monday. They set a “hold” rating for the company. JPMorgan Chase & Co. reissued a “buy” rating on shares of Diageo PLC in a research note on Wednesday, September 7th. Goldman Sachs Group Inc. raised Diageo PLC from a “sell” rating to a “neutral” rating in a research note on Tuesday, June 28th. Beaufort Securities reissued a “buy” rating on shares of Diageo PLC in a research note on Sunday, July 31st. Finally, HSBC restated a “hold” rating on shares of Diageo PLC in a research report on Thursday, June 30th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and six have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $137.71.
Diageo PLC (NYSE:DEO) opened at 112.67 on Wednesday. The stock has a market cap of $70.71 billion, a PE ratio of 24.26 and a beta of 0.78. Diageo PLC has a 12-month low of $99.59 and a 12-month high of $117.95. The company’s 50-day moving average price is $114.50 and its 200-day moving average price is $111.11.
The firm also recently declared a dividend, which will be paid on Wednesday, October 12th. Stockholders of record on Friday, August 12th will be issued a dividend of $0.192 per share. The ex-dividend date is Wednesday, August 10th.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in DEO. Citizens Financial Group Inc RI increased its position in Diageo PLC by 3.0% in the second quarter. Citizens Financial Group Inc RI now owns 900 shares of the company’s stock worth $101,000 after buying an additional 26 shares in the last quarter. Jackson Grant Investment Advisers Inc. increased its position in shares of Diageo PLC by 1.2% in the second quarter. Jackson Grant Investment Advisers Inc. now owns 1,050 shares of the company’s stock valued at $119,000 after buying an additional 12 shares during the period. Integrated Wealth Management increased its position in shares of Diageo PLC by 2.4% in the second quarter. Integrated Wealth Management now owns 1,158 shares of the company’s stock valued at $131,000 after buying an additional 27 shares during the period. Jolley Asset Management LLC increased its position in shares of Diageo PLC by 37.4% in the second quarter. Jolley Asset Management LLC now owns 1,237 shares of the company’s stock valued at $140,000 after buying an additional 337 shares during the period. Finally, Washington Trust Bank increased its position in shares of Diageo PLC by 9.5% in the third quarter. Washington Trust Bank now owns 1,359 shares of the company’s stock valued at $158,000 after buying an additional 118 shares during the period. Institutional investors and hedge funds own 10.97% of the company’s stock.
About Diageo PLC
Diageo PLC is an alcoholic beverage company. The Company operates in various categories, including spirits and beer. Its geographic segments include North America; Europe, Russia and Turkey; Africa; Latin America and Caribbean, and Asia Pacific. Its principal products includes Scotch whisky, Gin, Vodka, Rum, Beer, Irish Cream Liqueur, Wine, Raki, Tequila, Canadian Whisky, American Whiskey, Progressive Adult Beverages, Cachaca, Brandy and Ready to Drink.
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