Diageo (LON:DGE) Share Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Diageo shares moved above their 200-day moving average, reaching GBX 1,642.50 before closing at GBX 1,620.50, compared with the 200-day average of GBX 1,551.40.
• Analyst sentiment is generally positive: four analysts rate the stock Buy and three rate it Hold, producing a consensus “Moderate Buy” rating and an average price target of GBX 2,033.86.
• Despite a high debt-to-equity ratio of 203.12, insiders have recently purchased shares, including 1,240 shares acquired over the past three months; insiders own 0.16% of the company.

Diageo plc (LON:DGE - Get Free Report) shares passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 1,551.40 and traded as high as GBX 1,642.50. Diageo shares last traded at GBX 1,620.50, with a volume of 1,051,408,375 shares changing hands.

Wall Street Analyst Weigh In

Several analysts recently commented on DGE shares. Royal Bank Of Canada restated an "outperform" rating and set a GBX 2,000 price target on shares of Diageo in a report on Monday, August 24th. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Diageo from GBX 1,770 to GBX 1,734 and set a "hold" rating on the stock in a research note on Wednesday, September 16th. Berenberg Bank reiterated a "buy" rating and issued a GBX 2,223 target price on shares of Diageo in a research report on Friday, August 7th. Finally, Jefferies Financial Group lifted their target price on shares of Diageo from GBX 2,000 to GBX 2,200 and gave the company a "buy" rating in a research note on Monday, August 10th. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Diageo currently has an average rating of "Moderate Buy" and a consensus target price of GBX 2,033.86.

Diageo Stock Performance

The company has a quick ratio of 0.62, a current ratio of 1.60 and a debt-to-equity ratio of 203.12. The stock has a market cap of £36.03 billion, a P/E ratio of 20.80, a price-to-earnings-growth ratio of 1.75 and a beta of 0.31. The firm's 50-day moving average is GBX 1,659.05 and its two-hundred day moving average is GBX 1,551.40.

Insider Transactions at Diageo

In other Diageo news, insider John Alexander Manzoni acquired 414 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The stock was purchased at an average cost of GBX 1,585 per share, for a total transaction of £6,561.90. Insiders have acquired 1,240 shares of company stock valued at $2,000,426 in the last three months. Corporate insiders own 0.16% of the company's stock.

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.

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