Zacks Investment Research lowered shares of Diageo PLC (NYSE:DEO) from a buy rating to a hold rating in a research report released on Wednesday, October 18th.
According to Zacks, “Shares of Diageo have outperformed the industry in the past one year, driven by its strong fundamentals, continuous innovation and focus on expansion. Also, the company’s strategic endeavors including growth via acquisitions remain noteworthy. In fact, the buyout of the U.S. fastest-growing premium tequila brand, Casamigos, is expected to boost its market share in the category and is likely to capitalize on the company’s presence in the high-growth international markets.Notably, alcohol stocks are doing well backed by the rising demand for flavored whisky, premium tequilas and spirits. However, currency fluctuations pose a serious concern for the company, as a substantial portion of Diageo’s revenues comes from international operations. Macroeconomic factors such as interest rate hikes, increase in fuel and energy costs, credit availability and unemployment levels may also impact the company’s growth and profitability.”
Other equities research analysts have also recently issued research reports about the stock. Jefferies Group LLC reissued a buy rating and set a $155.40 target price (up previously from $155.20) on shares of Diageo PLC in a report on Saturday, September 30th. Societe Generale raised shares of Diageo PLC from a hold rating to a buy rating in a report on Monday, June 26th. BidaskClub raised shares of Diageo PLC from a hold rating to a buy rating in a report on Wednesday, June 21st. Berenberg Bank cut shares of Diageo PLC from a buy rating to a hold rating in a report on Wednesday, September 13th. Finally, Evercore ISI assumed coverage on shares of Diageo PLC in a report on Thursday, September 28th. They set an outperform rating and a $152.00 target price on the stock. Three equities research analysts have rated the stock with a sell rating, three 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 an average price target of $152.35.
Diageo PLC (NYSE:DEO) traded up 0.92% during midday trading on Wednesday, hitting $136.52. The stock had a trading volume of 652,358 shares. The stock has a 50-day moving average of $134.26 and a 200-day moving average of $126.05. Diageo PLC has a 52 week low of $99.46 and a 52 week high of $137.59. The firm has a market cap of $85.78 billion, a P/E ratio of 24.52 and a beta of 0.73.
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The business also recently announced a semiannual dividend, which was paid on Wednesday, October 11th. Investors of record on Friday, August 11th were given a $2.0322 dividend. The ex-dividend date of this dividend was Wednesday, August 9th. This is a positive change from Diageo PLC’s previous semiannual dividend of $1.19. This represents a yield of 3.12%.
Large investors have recently made changes to their positions in the stock. Family Capital Trust Co purchased a new position in Diageo PLC in the third quarter worth $119,000. Rockefeller Financial Services Inc. purchased a new position in Diageo PLC in the third quarter worth $125,000. Harbour Capital Advisors LLC purchased a new position in Diageo PLC in the first quarter worth $118,000. Tower Research Capital LLC TRC grew its position in Diageo PLC by 404.4% in the second quarter. Tower Research Capital LLC TRC now owns 1,039 shares of the company’s stock worth $125,000 after acquiring an additional 833 shares in the last quarter. Finally, Acrospire Investment Management LLC grew its position in Diageo PLC by 62.5% in the second quarter. Acrospire Investment Management LLC now owns 1,300 shares of the company’s stock worth $156,000 after acquiring an additional 500 shares in the last quarter. Institutional investors own 11.70% of the company’s stock.
Diageo PLC Company Profile
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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