Diageo (LON:DGE) Stock Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Diageo shares rose above their 200-day moving average, trading as high as GBX 1,604.50 before closing at GBX 1,591, compared with a 200-day average of GBX 1,557.95.
• Analysts are broadly positive, with five Buy ratings and three Holds producing a consensus “Moderate Buy” rating. Price targets range from GBX 1,600 to GBX 2,000, although the reported average target of GBX 4,554.88 appears unusually high relative to the individual forecasts.
• Insiders purchased 4,606 shares over the past three months, while Diageo reported a £35.38 billion market capitalization, a 14.70 price-to-earnings ratio, and a high debt-to-equity ratio of 208.59.

Diageo plc (LON:DGE - Get Free Report) shares crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of GBX 1,557.95 and traded as high as GBX 1,604.50. Diageo shares last traded at GBX 1,591, with a volume of 3,239,510 shares.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. UBS Group reaffirmed a "neutral" rating and set a GBX 1,600 target price on shares of Diageo in a research report on Tuesday, May 5th. Jefferies Financial Group reissued a "buy" rating and set a £222.30 price target on shares of Diageo in a research report on Friday, June 26th. Royal Bank Of Canada restated an "outperform" rating and set a GBX 2,000 price target on shares of Diageo in a research note on Wednesday, May 27th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a GBX 1,759 price objective on shares of Diageo in a report on Wednesday, June 24th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Diageo has a consensus rating of "Moderate Buy" and an average target price of GBX 4,554.88.

Diageo Price Performance

The company has a current ratio of 1.60, a quick ratio of 0.62 and a debt-to-equity ratio of 208.59. The firm's 50-day moving average price is GBX 1,538.52 and its two-hundred day moving average price is GBX 1,557.95. The stock has a market cap of £35.38 billion, a PE ratio of 14.70, a PEG ratio of 1.75 and a beta of 0.31.

Insider Buying and Selling

In related news, insider John Alexander Manzoni bought 441 shares of the company's stock in a transaction on Wednesday, June 10th. The shares were acquired at an average price of GBX 1,488 per share, with a total value of £6,562.08. Also, insider John Rishton bought 3,274 shares of the company's stock in a transaction on Monday, May 18th. The shares were bought at an average cost of GBX 1,527 per share, for a total transaction of £49,993.98. Insiders purchased 4,606 shares of company stock valued at $7,012,849 in the last three months. 0.16% of the stock is currently owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.