Diageo plc (NYSE:DEO) Given Average Rating of "Hold" by Brokerages

Key Points

• Diageo plc has received an average broker rating of "Hold" from nine analysts, with two sell recommendations, three holds, and four buys.
• The company recently announced a semi-annual dividend of $2.5192, representing a significant yield increase from the previous dividend of $1.62.
• Bank of America downgraded its price target for Diageo from $117.00 to $109.00 while maintaining a "buy" rating on the stock.

Diageo plc (NYSE:DEO - Get Free Report) has earned an average rating of "Hold" from the nine brokerages that are covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, three have given a hold recommendation and four have given a buy recommendation to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $119.00.

A number of analysts have recently weighed in on DEO shares. Bank of America cut their price objective on Diageo from $117.00 to $109.00 and set a "buy" rating on the stock in a research report on Friday, September 26th. The Goldman Sachs Group raised Diageo from a "sell" rating to a "neutral" rating in a report on Thursday, August 7th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Diageo in a report on Wednesday, October 8th.

Diageo Stock Up 0.4%

Diageo stock opened at $97.99 on Tuesday. Diageo has a twelve month low of $93.42 and a twelve month high of $138.52. The stock's fifty day simple moving average is $103.12 and its 200-day simple moving average is $105.68. The company has a current ratio of 1.63, a quick ratio of 0.64 and a debt-to-equity ratio of 1.64. The firm has a market capitalization of $54.54 billion, a P/E ratio of 14.31, a P/E/G ratio of 3.55 and a beta of 0.58.

Diageo Increases Dividend

The firm also recently announced a semi-annual dividend, which will be paid on Thursday, December 4th. Investors of record on Friday, October 17th will be issued a $2.5192 dividend. This represents a yield of 516.0%. This is a boost from Diageo's previous semi-annual dividend of $1.62. The ex-dividend date of this dividend is Friday, October 17th. Diageo's dividend payout ratio is currently 72.41%.

Hedge Funds Weigh In On Diageo

Several large investors have recently bought and sold shares of DEO. Twin Peaks Wealth Advisors LLC purchased a new position in Diageo in the second quarter valued at $26,000. Abound Financial LLC purchased a new position in Diageo in the first quarter valued at $27,000. Bell Investment Advisors Inc increased its holdings in Diageo by 94.7% in the second quarter. Bell Investment Advisors Inc now owns 292 shares of the company's stock valued at $29,000 after buying an additional 142 shares during the last quarter. TruNorth Capital Management LLC purchased a new position in Diageo in the first quarter valued at $30,000. Finally, Truvestments Capital LLC purchased a new position in shares of Diageo during the first quarter worth about $30,000. Hedge funds and other 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.

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