Diageo (NYSE:DEO) Sets New 52-Week Low - Should You Sell?

Key Points

• Shares of Diageo hit a new 52-week low, trading as low as $73.11 and last at $72.77 on volume of 21,868 shares; the 50-day and 200-day moving averages sit at $89.01 and $91.67 respectively.
• Analysts are mixed with a MarketBeat consensus of "Hold" and an average price target of $116.50 (ratings split: five Buy, five Hold, three Sell), though firms like Sanford C. Bernstein and RBC have recently issued bullish calls.
• Diageo announced a $0.80 dividend payable June 4, with the record and ex-dividend date listed as April 17.

Shares of Diageo plc (NYSE:DEO - Get Free Report) hit a new 52-week low during trading on Tuesday . The stock traded as low as $73.11 and last traded at $72.7720, with a volume of 21868 shares trading hands. The stock had previously closed at $74.13.

Analysts Set New Price Targets

Several research analysts recently weighed in on DEO shares. Sanford C. Bernstein set a $124.00 target price on shares of Diageo and gave the stock an "outperform" rating in a report on Monday, December 29th. Barclays reissued an "overweight" rating on shares of Diageo in a report on Thursday, December 11th. Royal Bank Of Canada raised Diageo from a "sector perform" rating to an "outperform" rating in a research note on Tuesday, January 6th. HSBC cut Diageo from a "buy" rating to a "hold" rating in a research report on Monday, March 2nd. Finally, Argus raised Diageo to a "hold" rating in a report on Tuesday, March 10th. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $116.50.

Diageo Stock Performance

The company has a quick ratio of 0.71, a current ratio of 1.60 and a debt-to-equity ratio of 1.53. The business's fifty day simple moving average is $89.01 and its 200-day simple moving average is $91.67.

Diageo Announces Dividend

The company also recently announced a dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, April 17th will be issued a $0.80 dividend. This represents a dividend yield of 207.0%. The ex-dividend date of this dividend is Friday, April 17th.

Hedge Funds Weigh In On Diageo

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Equity Investment Corp purchased a new stake in Diageo during the third quarter valued at $92,970,000. Federated Hermes Inc. grew its stake in shares of Diageo by 7.2% in the 3rd quarter. Federated Hermes Inc. now owns 726,578 shares of the company's stock worth $69,337,000 after buying an additional 48,909 shares in the last quarter. Osaic Holdings Inc. grew its stake in shares of Diageo by 42.2% in the 2nd quarter. Osaic Holdings Inc. now owns 99,998 shares of the company's stock worth $10,099,000 after buying an additional 29,674 shares in the last quarter. Confluence Investment Management LLC increased its holdings in shares of Diageo by 0.9% in the 3rd quarter. Confluence Investment Management LLC now owns 1,363,504 shares of the company's stock worth $130,119,000 after buying an additional 12,678 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Diageo by 353.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 717,740 shares of the company's stock valued at $72,377,000 after buying an additional 559,547 shares in the last quarter. 8.97% of the stock is owned by institutional investors.

About Diageo

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.

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