Diageo (NYSE:DEO) Hits New 52-Week Low – Here’s Why

Diageo plc (NYSE:DEO)’s stock price hit a new 52-week low on Wednesday . The company traded as low as $85.12 and last traded at $85.1950, with a volume of 303962 shares traded. The stock had previously closed at $85.42.

Analyst Upgrades and Downgrades

A number of research firms recently commented on DEO. UBS Group reiterated a “neutral” rating on shares of Diageo in a research note on Wednesday, December 3rd. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of Diageo in a research report on Friday, November 28th. Barclays restated an “overweight” rating on shares of Diageo in a report on Thursday, December 11th. Bank of America lowered their target price on Diageo from $117.00 to $109.00 and set a “buy” rating on the stock in a report on Friday, September 26th. Finally, Zacks Research downgraded shares of Diageo from a “hold” rating to a “strong sell” rating in a report on Tuesday, November 11th. Three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $119.00.

Diageo Stock Performance

The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.64 and a current ratio of 1.63. The company has a fifty day simple moving average of $91.96 and a 200-day simple moving average of $99.53.

Institutional Trading of Diageo

Large investors have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company boosted its position in shares of Diageo by 72,871.7% in the second quarter. The Manufacturers Life Insurance Company now owns 1,568,162 shares of the company’s stock worth $158,133,000 after buying an additional 1,566,013 shares during the period. Equity Investment Corp acquired a new stake in shares of Diageo during the third quarter worth approximately $92,970,000. Orbis Allan Gray Ltd grew its position in Diageo by 236.6% during the second quarter. Orbis Allan Gray Ltd now owns 1,157,991 shares of the company’s stock valued at $116,772,000 after purchasing an additional 813,973 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in Diageo by 353.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 717,740 shares of the company’s stock valued at $72,377,000 after purchasing an additional 559,547 shares in the last quarter. Finally, Raymond James Financial Inc. increased its stake in Diageo by 48.5% in the 3rd quarter. Raymond James Financial Inc. now owns 1,701,878 shares of the company’s stock valued at $162,410,000 after buying an additional 555,509 shares during the period. 8.97% of the stock is owned by institutional investors and hedge funds.

Diageo Company Profile

Diageo plc is a global producer, marketer and distributor of alcoholic beverages, headquartered in London, England. The company was created through the 1997 merger of Guinness plc and Grand Metropolitan plc and is publicly traded on multiple exchanges, including the New York Stock Exchange (NYSE: DEO) and the London Stock Exchange. Diageo operates a worldwide business, selling products in a broad range of markets across the Americas, Europe, Africa, Asia and Latin America.

Diageo’s core activities cover the production, marketing and sale of a diverse portfolio of spirits, beer and liqueurs.