Zacks Investment Research upgraded shares of Diageo PLC (NYSE:DEO) from a sell rating to a hold rating in a research note issued to investors on Wednesday.

According to Zacks, “Diageo’s earnings in fiscal 2016 (ended Jun 30, 2016) gained 1.0% (in local currency) year over year to 89.4 pence ($1.32* per share) from 88.8 pence ($1.37* per share) in the year-ago period backed by organic profit growth, higher associates income and lower finance charges. The company’s cost reduction initiative is on track and expected to boost margins further. However, currency headwinds have been a drag on the top line since the beginning of fiscal 2015 as it raised the price of imported premium spirits. Moreover, increasing restrictions on alcohol consumption by governments across the world have dented revenue growth. However, the company’s stepped-up investment in high-priced and high-margin products should boost margins, going ahead.”

Several other equities analysts have also recently issued reports on DEO. HSBC reiterated a hold rating on shares of Diageo PLC in a research note on Thursday, June 30th. Goldman Sachs Group Inc. upgraded Diageo PLC from a sell rating to a neutral rating in a research note on Tuesday, June 28th. Barclays PLC cut Diageo PLC from an overweight rating to an equal weight rating in a research note on Friday, July 8th. Societe Generale upgraded Diageo PLC from a sell rating to a hold rating in a research note on Monday, June 27th. Finally, Beaufort Securities reiterated a buy rating on shares of Diageo PLC in a research note on Sunday, July 31st. Eight investment analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $134.28.

Shares of Diageo PLC (NYSE:DEO) opened at 113.88 on Wednesday. The company has a 50-day moving average price of $114.17 and a 200-day moving average price of $110.36. The stock has a market cap of $71.47 billion, a price-to-earnings ratio of 23.94 and a beta of 0.76. 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. Shareholders of record on Friday, August 12th will be given a dividend of $0.192 per share. The ex-dividend date is Wednesday, August 10th.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Janney Montgomery Scott LLC raised its position in Diageo PLC by 8.0% in the fourth quarter. Janney Montgomery Scott LLC now owns 31,183 shares of the company’s stock valued at $3,401,000 after buying an additional 2,302 shares during the period. Stifel Financial Corp raised its position in Diageo PLC by 20.2% in the fourth quarter. Stifel Financial Corp now owns 202,280 shares of the company’s stock valued at $22,069,000 after buying an additional 33,932 shares during the period. Proficio Capital Partners LLC raised its position in Diageo PLC by 1.9% in the first quarter. Proficio Capital Partners LLC now owns 13,428 shares of the company’s stock valued at $1,448,000 after buying an additional 253 shares during the period. CENTRAL TRUST Co purchased a new position in Diageo PLC during the first quarter valued at approximately $4,600,000. Finally, Capstone Asset Management Co. raised its position in Diageo PLC by 7.4% in the first quarter. Capstone Asset Management Co. now owns 57,518 shares of the company’s stock valued at $6,204,000 after buying an additional 3,940 shares during the period. 11.43% of the stock is currently owned by institutional investors.

About Diageo PLC

Diageo plc (Diageo) is a drinks business company. The Company is a provider of beverage alcohol of various brands in spirits, beer and wine. The Company produces its brands from more than 200 sites in over 30 countries. Diageo owns manufacturing production facilities across the globe, including maltings, distilleries, breweries, packaging plants, maturation warehouses, cooperages, vineyards, wineries and distribution warehouses.

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