Diageo (LON:DGE) Stock Passes Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Diageo shares moved above their 200-day moving average, reaching GBX 1,730 and closing at GBX 1,719, compared with the average of GBX 1,565.12.
• Analyst sentiment is generally positive: four analysts rate the stock “Buy” and three rate it “Hold,” producing a consensus “Moderate Buy” rating and a GBX 2,029 price target.
• Diageo has recently seen insider buying, including a purchase by John Alexander Manzoni, while the company carries high leverage with a debt-to-equity ratio of 197.88.

Diageo plc (LON:DGE - Get Free Report) passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of GBX 1,565.12 and traded as high as GBX 1,730. Diageo shares last traded at GBX 1,719, with a volume of 4,806,401 shares trading hands.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Berenberg Bank reissued a "buy" rating and issued a GBX 2,223 price target on shares of Diageo in a research note on Friday, August 7th. Jefferies Financial Group lifted their price objective on Diageo from GBX 2,000 to GBX 2,200 and gave the stock a "buy" rating in a research note on Monday, August 10th. Royal Bank Of Canada reiterated an "outperform" rating and issued a GBX 2,000 target price on shares of Diageo in a report on Wednesday, May 27th. UBS Group reissued a "neutral" rating and set a GBX 1,600 target price on shares of Diageo in a research report on Tuesday, May 5th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a GBX 1,700 price target on shares of Diageo in a report on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 2,029.

Diageo Stock Performance

The company has a debt-to-equity ratio of 197.88, a quick ratio of 0.62 and a current ratio of 1.60. The stock has a fifty day simple moving average of GBX 1,601.08 and a two-hundred day simple moving average of GBX 1,565.12. The stock has a market capitalization of £38.22 billion, a price-to-earnings ratio of 15.89, a P/E/G ratio of 1.75 and a beta of 0.31.

Insider Activity at Diageo

In other Diageo news, insider John Alexander Manzoni bought 362 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The stock was acquired at an average price of GBX 1,809 per share, with a total value of £6,548.58. In the last 90 days, insiders bought 1,267 shares of company stock worth $1,999,464. 0.17% of the stock is owned by corporate insiders.

About Diageo

Diageo is a global leader in premium drinks, across spirits and beer, a business built on the principles and foundations laid by the giants of the industry. With over 200 brands sold in 180 countries, our portfolio has remarkable breadth. From centuries-old names to exciting new entrants, and global giants to local legends, we're building the very best brands out there, and with over 30,000 talented people based in over 135 countries, we're a truly global company. With such diversity, we're able to truly represent our broad consumer base and think differently about the future. To maintain our position as leaders in the alcoholic beverage market, we always invest in the future and are mindful of the impact we have.

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