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

Key Points

• Diageo has a consensus “Hold” rating from 12 brokerages: six analysts recommend buying, four suggest holding, and two recommend selling. The average 1-year price target is $106.25.
• Several major institutional investors increased their positions, including Bank of Montreal, Morgan Stanley, Orbis Allan Gray, and Raymond James. Institutional investors collectively own 8.97% of the company.
• Diageo shares opened at $95.48, compared with a 52-week range of $72.45 to $116.41. The company declared a $1.20-per-share dividend payable December 3 to shareholders of record October 16.

Diageo plc (NYSE:DEO - Get Free Report) has been given a consensus recommendation of "Hold" by the twelve brokerages that are presently covering the company, MarketBeat reports. Two research analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and six have issued a buy recommendation on the company. The average 1-year price target among brokerages that have covered the stock in the last year is $106.25.

A number of research firms have weighed in on DEO. Loop Capital set a $99.00 target price on shares of Diageo in a research note on Thursday, June 18th. Zacks Research cut Diageo from a "hold" rating to a "strong sell" rating in a research note on Monday, July 27th. TD Cowen reissued a "buy" rating on shares of Diageo in a report on Monday, August 10th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Diageo in a research report on Friday, July 17th.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in DEO. Bank of America Corp DE grew its holdings in Diageo by 3.7% during the 1st quarter. Bank of America Corp DE now owns 2,913,707 shares of the company's stock worth $216,925,000 after acquiring an additional 103,531 shares during the last quarter. Bank of Montreal Can raised its stake in shares of Diageo by 428.7% during the fourth quarter. Bank of Montreal Can now owns 2,173,047 shares of the company's stock valued at $187,469,000 after acquiring an additional 1,762,027 shares during the last quarter. Morgan Stanley raised its stake in shares of Diageo by 32.4% during the fourth quarter. Morgan Stanley now owns 1,947,245 shares of the company's stock valued at $167,989,000 after acquiring an additional 476,979 shares during the last quarter. Orbis Allan Gray Ltd lifted its holdings in shares of Diageo by 12.4% during the fourth quarter. Orbis Allan Gray Ltd now owns 1,737,346 shares of the company's stock worth $149,881,000 after purchasing an additional 191,216 shares during the period. Finally, Raymond James Financial Inc. lifted its holdings in shares of Diageo by 48.5% during the third quarter. Raymond James Financial Inc. now owns 1,701,878 shares of the company's stock worth $162,410,000 after purchasing an additional 555,509 shares during the period. Institutional investors own 8.97% of the company's stock.

Diageo Trading Up 0.0%

Shares of NYSE:DEO opened at $95.48 on Monday. Diageo has a one year low of $72.45 and a one year high of $116.41. The company has a debt-to-equity ratio of 1.53, a current ratio of 1.60 and a quick ratio of 0.71. The firm has a 50 day simple moving average of $84.67 and a 200 day simple moving average of $84.06.

Diageo Announces Dividend

The company also recently declared a dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Friday, October 16th will be issued a dividend of $1.20 per share. This represents a dividend yield of 252.0%. The ex-dividend date is Friday, October 16th.

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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