Diageo PLC (DEO) Downgraded by Zacks Investment Research to Strong Sell
According to Zacks, “Estimates have been revised downward for the past few weeks as Diageo has been witnessing dismal top line performance primarily due to unfavorable currency fluctuations as well as declining volumes especially in the North American Spirits and European countries. Moreover, increasing restrictions on alcohol consumption by governments across the world have dented revenue growth. However, its strong brands, its product and geographic diversity, and exposure to faster-growing markets are expected to allow it to grow sales and earnings at healthy rates over the long-term. The company’s cost reduction initiative is on track and expected to boost margins further. Further, its focus on higher priced and higher margin items are expected to help it maintain profit going ahead. However, the company”
Several other brokerages also recently issued reports on DEO. JPMorgan Chase & Co. reiterated a buy rating on shares of Diageo PLC in a research note on Wednesday, September 7th. Goldman Sachs Group Inc. upgraded shares of Diageo PLC from a sell rating to a neutral rating in a research note on Tuesday, June 28th. HSBC restated a hold rating on shares of Diageo PLC in a research report on Thursday, June 30th. Societe Generale upgraded shares of Diageo PLC from a sell rating to a hold rating in a research report on Monday, June 27th. Finally, Barclays PLC downgraded shares of Diageo PLC from an overweight rating to an equal weight rating in a research report on Friday, July 8th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and six have issued a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus price target of $134.28.
Diageo PLC (NYSE:DEO) traded down 0.51% on Wednesday, reaching $113.86. 188,679 shares of the company were exchanged. Diageo PLC has a 12-month low of $99.59 and a 12-month high of $117.95. The firm has a 50-day moving average of $114.54 and a 200 day moving average of $111.09. The firm has a market capitalization of $71.46 billion, a P/E ratio of 24.58 and a beta of 0.78.
The firm also recently disclosed a dividend, which will be paid on Wednesday, October 12th. Shareholders of record on Friday, August 12th will be given a dividend of $0.192 per share. The ex-dividend date of this dividend is Wednesday, August 10th.
A number of institutional investors have recently added to or reduced their stakes in the stock. Eqis Capital Management Inc. raised its stake in Diageo PLC by 31.5% in the third quarter. Eqis Capital Management Inc. now owns 6,724 shares of the company’s stock valued at $780,000 after buying an additional 1,611 shares during the period. Washington Trust Bank raised its stake in Diageo PLC by 9.5% in the third quarter. Washington Trust Bank now owns 1,359 shares of the company’s stock valued at $158,000 after buying an additional 118 shares during the period. LVM Capital Management Ltd. MI raised its stake in Diageo PLC by 31.4% in the third quarter. LVM Capital Management Ltd. MI now owns 3,350 shares of the company’s stock valued at $426,000 after buying an additional 800 shares during the period. Carnick & Kubik Group LLC purchased a new stake in Diageo PLC during the second quarter valued at about $284,000. Finally, Northwestern Mutual Wealth Management Co. raised its stake in Diageo PLC by 14.4% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 47,255 shares of the company’s stock valued at $5,333,000 after buying an additional 5,933 shares during the period. Institutional investors and hedge funds own 10.97% of the company’s stock.
Diageo PLC Company Profile
Diageo PLC is an alcoholic beverage company. The Company operates in various categories, including spirits and beer. Its geographic segments include North America; Europe, Russia and Turkey; Africa; Latin America and Caribbean, and Asia Pacific. Its principal products includes Scotch whisky, Gin, Vodka, Rum, Beer, Irish Cream Liqueur, Wine, Raki, Tequila, Canadian Whisky, American Whiskey, Progressive Adult Beverages, Cachaca, Brandy and Ready to Drink.
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