Diageo (NYSE:DEO) Sees Strong Trading Volume - Time to Buy?

Key Points

• Diageo shares rose 1.8% to $88.30, although trading volume fell 38% from the previous session. The stock remains below its 50-day and 200-day moving averages of $89.48 and $84.01, respectively.
• Analyst sentiment is generally positive: Zacks Research upgraded the stock to “strong buy,” while the overall consensus is “Moderate Buy” with a $105.33 price target. Ratings remain mixed, including one sell and four holds.
• The company declared a $1.20-per-share dividend payable December 3 to shareholders of record October 16. The article’s reported 252.0% yield appears inconsistent with the stock price and should be verified.

Diageo plc (NYSE:DEO - Get Free Report) saw an uptick in trading volume on Monday. 909,068 shares were traded during trading, a decline of 38% from the previous session's volume of 1,462,393 shares. The stock last traded at $88.3030 and had previously closed at $86.73.

Analyst Upgrades and Downgrades

DEO has been the subject of a number of recent research reports. Zacks Research upgraded shares of Diageo from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. TD Cowen reaffirmed a "buy" rating on shares of Diageo in a report on Monday, August 10th. Loop Capital set a $99.00 target price on shares of Diageo in a report on Thursday, June 18th. UBS Group reiterated a "neutral" rating on shares of Diageo in a research report on Thursday, August 27th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Diageo in a research note on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Diageo presently has a consensus rating of "Moderate Buy" and a consensus price target of $105.33.

Diageo Trading Up 1.8%

The company has a quick ratio of 0.62, a current ratio of 1.60 and a debt-to-equity ratio of 1.53. The firm's fifty day moving average price is $89.48 and its 200-day moving average price is $84.01.

Diageo Dividend Announcement

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

Institutional Investors Weigh In On Diageo

A number of large investors have recently added to or reduced their stakes in DEO. Envestnet Portfolio Solutions Inc. grew its stake in shares of Diageo by 2.8% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 5,513 shares of the company's stock worth $443,000 after purchasing an additional 152 shares during the last quarter. Lafayette Investments Inc. increased its holdings in Diageo by 0.4% during the 1st quarter. Lafayette Investments Inc. now owns 36,681 shares of the company's stock valued at $2,731,000 after purchasing an additional 154 shares during the period. Cohen Investment Advisors LLC increased its holdings in Diageo by 4.1% during the 1st quarter. Cohen Investment Advisors LLC now owns 4,276 shares of the company's stock valued at $318,000 after purchasing an additional 169 shares during the period. Sandy Cove Advisors LLC increased its holdings in Diageo by 2.9% during the 2nd quarter. Sandy Cove Advisors LLC now owns 6,189 shares of the company's stock valued at $497,000 after purchasing an additional 174 shares during the period. Finally, Parrish Capital LLC raised its position in Diageo by 3.7% during the 2nd quarter. Parrish Capital LLC now owns 6,434 shares of the company's stock valued at $517,000 after purchasing an additional 227 shares during the last quarter. Institutional investors own 8.97% of the company's stock.

About Diageo

Diageo plc is a global beverage alcohol company headquartered in London, England. The company produces, markets and distributes a broad portfolio of spirits, beer and ready-to-drink beverages through a collection of internationally recognized brands.

Its portfolio includes Johnnie Walker, Crown Royal, Buchanan's and Talisker whiskies; Smirnoff, Cîroc and Ketel One vodkas; Tanqueray and Gordon's gins; Baileys liqueur; Don Julio and Casamigos tequila; Captain Morgan rum; and Guinness beer.

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