Diageo PLC (DEO) Downgraded by Zacks Investment Research to Strong Sell
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”
Other equities research analysts have also issued research reports about the stock. HSBC reissued a hold rating on shares of Diageo PLC in a report on Thursday, June 30th. Goldman Sachs Group Inc. raised shares of Diageo PLC from a sell rating to a neutral rating in a report on Tuesday, June 28th. Beaufort Securities reissued a buy rating on shares of Diageo PLC in a report on Sunday, July 31st. Barclays PLC lowered shares of Diageo PLC from an overweight rating to an equal weight rating in a report on Friday, July 8th. Finally, Societe Generale raised shares of Diageo PLC from a sell rating to a hold rating in a report on Monday, June 27th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and six have given a buy rating to the company’s stock. Diageo PLC has an average rating of Hold and an average price target of $134.28.
Diageo PLC (NYSE:DEO) traded down 0.51% during midday trading on Wednesday, hitting $113.86. 188,679 shares of the stock traded hands. Diageo PLC has a 52-week low of $99.59 and a 52-week high of $117.95. The firm has a market cap of $71.46 billion, a PE ratio of 24.58 and a beta of 0.78. The stock has a 50-day moving average of $114.54 and a 200 day moving average of $111.09.
The company also recently disclosed a dividend, which will be paid on Wednesday, October 12th. Investors of record on Friday, August 12th will be issued a $0.192 dividend. The ex-dividend date of this dividend is Wednesday, August 10th.
Large investors have recently made changes to their positions in the stock. Eqis Capital Management Inc. raised its stake in shares of Diageo PLC by 31.5% in the third quarter. Eqis Capital Management Inc. now owns 6,724 shares of the company’s stock worth $780,000 after buying an additional 1,611 shares in the last quarter. Washington Trust Bank boosted its position in Diageo PLC by 9.5% in the third quarter. Washington Trust Bank now owns 1,359 shares of the company’s stock worth $158,000 after buying an additional 118 shares during the last quarter. LVM Capital Management Ltd. MI boosted its position in Diageo PLC by 31.4% in the third quarter. LVM Capital Management Ltd. MI now owns 3,350 shares of the company’s stock worth $426,000 after buying an additional 800 shares during the last quarter. Carnick & Kubik Group LLC bought a new position in Diageo PLC during the second quarter worth approximately $284,000. Finally, Northwestern Mutual Wealth Management Co. boosted its position in Diageo PLC by 14.4% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 47,255 shares of the company’s stock worth $5,333,000 after buying an additional 5,933 shares during the last quarter. 10.97% of the stock is owned by hedge funds and other institutional investors.
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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