Diageo PLC (NYSE:DEO) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to 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 analysts have also recently commented on the stock. Liberum Capital started coverage on shares of Diageo PLC in a research report on Monday. They set a “hold” rating on the stock. JPMorgan Chase & Co. reissued a “buy” rating on shares of Diageo PLC in a research report on Wednesday, September 7th. Goldman Sachs Group Inc. raised shares of Diageo PLC from a “sell” rating to a “neutral” rating in a research report on Tuesday, June 28th. Beaufort Securities reissued a “buy” rating on shares of Diageo PLC in a research report on Sunday, July 31st. Finally, HSBC reissued 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 five have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus target price of $134.28.
Diageo PLC (NYSE:DEO) opened at 116.33 on Wednesday. The firm has a market cap of $73.01 billion, a P/E ratio of 25.11 and a beta of 0.78. The firm’s 50-day moving average price is $114.55 and its 200-day moving average price is $111.07. Diageo PLC has a 12 month low of $99.59 and a 12 month high of $117.95.
The company also recently declared a dividend, which will be paid on Wednesday, October 12th. Stockholders of record on Friday, August 12th will be given 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 the stock. MUFG Americas raised its position in Diageo PLC by 2.8% in the third quarter. MUFG Americas now owns 29,319 shares of the company’s stock worth $3,160,000 after buying an additional 789 shares during the period. EisnerAmper Wealth Management raised its position in Diageo PLC by 8.5% in the fourth quarter. EisnerAmper Wealth Management now owns 5,183 shares of the company’s stock worth $565,000 after buying an additional 405 shares during the period. Stillwater Investment Management raised its position in Diageo PLC by 2.9% in the fourth quarter. Stillwater Investment Management now owns 8,839 shares of the company’s stock worth $964,000 after buying an additional 250 shares during the period. Lawson Kroeker Investment Management purchased a new position in Diageo PLC during the fourth quarter worth approximately $539,000. Finally, New England Research & Management purchased a new position in Diageo PLC during the fourth quarter worth approximately $693,000. Hedge funds and other institutional investors 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.