Diageo (NYSE:DEO) Shares Gap Down - Here's Why

Diageo plc (NYSE:DEO - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $110.82, but opened at $108.37. Diageo shares last traded at $106.97, with a volume of 236,251 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on DEO. Morgan Stanley reissued an "underweight" rating on shares of Diageo in a report on Monday, May 12th. Deutsche Bank Aktiengesellschaft raised Diageo from a "sell" rating to a "hold" rating in a research note on Monday, March 3rd. Finally, Berenberg Bank began coverage on Diageo in a research note on Wednesday, April 2nd. They issued a "buy" rating for the company. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $129.00.

Diageo Stock Performance

The company has a market cap of $58.52 billion, a P/E ratio of 15.36, a P/E/G ratio of 2.39 and a beta of 0.58. The company has a quick ratio of 0.67, a current ratio of 1.60 and a debt-to-equity ratio of 1.62. The business has a 50-day moving average price of $110.10 and a two-hundred day moving average price of $114.48.

Institutional Investors Weigh In On Diageo

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DEO. Brighton Jones LLC acquired a new position in shares of Diageo in the 4th quarter valued at approximately $202,000. Spire Wealth Management raised its stake in Diageo by 65.4% in the 4th quarter. Spire Wealth Management now owns 3,545 shares of the company's stock valued at $451,000 after acquiring an additional 1,402 shares during the period. Tectonic Advisors LLC bought a new position in Diageo during the 4th quarter worth $726,000. Financial Advocates Investment Management increased its position in Diageo by 4.0% during the 4th quarter. Financial Advocates Investment Management now owns 3,154 shares of the company's stock worth $401,000 after buying an additional 121 shares during the period. Finally, Golden State Wealth Management LLC bought a new position in Diageo during the 4th quarter worth $125,000. Institutional investors own 8.97% of the company's stock.

Diageo Company Profile

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products.