Diageo (NYSE:DEO) Sets New 1-Year Low – Time to Sell?

Diageo plc (NYSE:DEO) reached a new 52-week low during trading on Wednesday . The company traded as low as $105.23 and last traded at $106.29, with a volume of 1642224 shares changing hands. The stock had previously closed at $108.13.

Analyst Upgrades and Downgrades

DEO has been the subject of a number of analyst reports. TD Cowen raised their price target on Diageo from $124.00 to $129.00 and gave the stock a “hold” rating in a research report on Wednesday, January 8th. Deutsche Bank Aktiengesellschaft upgraded Diageo from a “sell” rating to a “hold” rating in a research report on Monday, March 3rd. UBS Group upgraded Diageo from a “sell” rating to a “buy” rating in a research report on Wednesday, December 11th. Finally, Jefferies Financial Group upgraded Diageo from a “hold” rating to a “buy” rating in a research note on Thursday, December 5th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $129.00.

Diageo Price Performance

The company has a market cap of $59.18 billion, a PE ratio of 15.54, a price-to-earnings-growth ratio of 2.39 and a beta of 0.65. 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 firm has a 50 day simple moving average of $113.60 and a 200-day simple moving average of $123.12.

Diageo Dividend Announcement

The firm also recently declared a semi-annual dividend, which will be paid on Thursday, April 24th. Stockholders of record on Friday, February 28th will be paid a dividend of $1.62 per share. The ex-dividend date is Friday, February 28th. This represents a dividend yield of 3.8%. Diageo’s payout ratio is 46.42%.

Institutional Investors Weigh In On Diageo

A number of large investors have recently modified their holdings of DEO. CIBC Asset Management Inc grew its stake in shares of Diageo by 106.2% during the third quarter. CIBC Asset Management Inc now owns 31,643 shares of the company’s stock worth $4,441,000 after acquiring an additional 16,300 shares during the last quarter. Thrivent Financial for Lutherans acquired a new stake in shares of Diageo during the third quarter worth about $261,000. Caprock Group LLC lifted its holdings in shares of Diageo by 4.8% during the third quarter. Caprock Group LLC now owns 6,063 shares of the company’s stock worth $867,000 after purchasing an additional 280 shares during the period. Prospera Financial Services Inc lifted its holdings in shares of Diageo by 25.9% during the third quarter. Prospera Financial Services Inc now owns 15,453 shares of the company’s stock worth $2,170,000 after purchasing an additional 3,178 shares during the period. Finally, PNC Financial Services Group Inc. lifted its holdings in shares of Diageo by 6.1% during the third quarter. PNC Financial Services Group Inc. now owns 77,391 shares of the company’s stock worth $10,861,000 after purchasing an additional 4,459 shares during the period. Hedge funds and other institutional investors own 8.97% of the company’s stock.

About Diageo

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.