Diageo plc (DEO) - What Are Researchers Saying About This Stock?

Key Points

• Analyst consensus is “Hold”: Among 18 brokerages, seven rate Diageo a buy, eight a hold, two a sell and one a strong buy. The average 12-month price target is $99.75.
• Institutional ownership remains limited: Several funds increased their positions during the third quarter, but institutional investors collectively own only 8.97% of Diageo’s stock.
• Shares were trading at $93.42, up 2.3%: The stock remained below its 12-month high of $102.74, while Diageo announced a $1.20 dividend payable December 3 to eligible shareholders.

Diageo plc (NYSE:DEO - Get Free Report) has received an average recommendation of "Hold" from the eighteen brokerages that are covering the company, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation, seven have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $99.75.

Several brokerages recently issued reports on DEO. UBS Group reiterated a "neutral" rating on shares of Diageo in a research note on Thursday, October 8th. Royal Bank Of Canada reaffirmed a "buy" rating on shares of Diageo in a report on Sunday, August 23rd. Barclays restated a "buy" rating on shares of Diageo in a research note on Friday, August 7th. TD Cowen reissued a "buy" rating on shares of Diageo in a report on Monday, August 10th. Finally, Morningstar cut shares of Diageo to a "hold" rating in a research report on Friday, August 7th.

Institutional Investors Weigh In On Diageo

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Provenance Wealth Advisors LLC raised its stake in Diageo by 1,925.6% in the third quarter. Provenance Wealth Advisors LLC now owns 790 shares of the company's stock valued at $68,000 after purchasing an additional 751 shares in the last quarter. First Nebraska Trust Co purchased a new position in Diageo in the 3rd quarter worth approximately $358,000. Profund Advisors LLC lifted its position in Diageo by 12.1% in the third quarter. Profund Advisors LLC now owns 6,604 shares of the company's stock valued at $565,000 after purchasing an additional 711 shares during the last quarter. Vise Technologies Inc. lifted its position in Diageo by 20.6% in the third quarter. Vise Technologies Inc. now owns 14,521 shares of the company's stock valued at $1,243,000 after purchasing an additional 2,484 shares during the last quarter. Finally, MGO One Seven LLC boosted its stake in shares of Diageo by 5.8% during the third quarter. MGO One Seven LLC now owns 4,712 shares of the company's stock valued at $403,000 after purchasing an additional 259 shares during the period. 8.97% of the stock is owned by institutional investors.

Diageo Trading Up 2.3%

NYSE:DEO opened at $93.42 on Friday. Diageo has a twelve month low of $72.45 and a twelve month high of $102.74. The business has a 50 day moving average price of $89.64 and a two-hundred day moving average price of $85.89. The company has a quick ratio of 0.62, a current ratio of 1.60 and a debt-to-equity ratio of 1.53.

Diageo Dividend Announcement

The company also recently announced a dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Friday, October 16th will be given a $1.20 dividend. The ex-dividend date is Friday, October 16th. This represents a dividend yield of 252.0%.

About Diageo

Diageo plc is a global beverage-alcohol company headquartered in London, England. It develops, produces, markets and distributes spirits, beer and ready-to-drink beverages through a portfolio of well-known international and regional brands.

Its brands include Johnnie Walker, Crown Royal and Bulleit whiskies; Smirnoff, Cîroc and Ketel One vodkas; Captain Morgan rum; Don Julio and Casamigos tequila; Tanqueray gin; Baileys liqueur; and Guinness stout. The company sells products through retail, hospitality and e-commerce channels, serving consumers in markets across North America, Europe, Asia-Pacific, Latin America, Africa and other regions.

Diageo was formed in 1997 through the merger of Grand Metropolitan and Guinness.

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