Diageo (DEO) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research downgraded shares of Diageo (NYSE:DEO) from a buy rating to a hold rating in a research report report published on Wednesday morning.
According to Zacks, “Diageo has surpassed the industry in a year driven by solid fundamentals, innovations and focus on expansion. Also, concentration on achieving growth via buyouts has been yielding results. The company has also been striving toward expanding its presence in emerging regions as well as focus on high-margin products. These factors fueled Diageo’s first-half fiscal 2018 results, wherein sales and earnings rose year over year. While the bottom line gained from increased organic operating profit and lower finance costs, the top line was backed by broad-based organic sales. Moreover, margins expanded, courtesy of favorable mix, greater productivity, better pricing and lower input costs. Notably, Diageo expects fiscal 2018 organic net sales to rise in the mid-single digits. However, adverse currency fluctuations and macroeconomic headwinds remain hurdles.”
A number of other equities research analysts also recently weighed in on the company. Natixis downgraded Diageo from a buy rating to a neutral rating in a report on Wednesday. Macquarie raised Diageo from an underperform rating to a neutral rating in a report on Wednesday, February 7th. BNP Paribas downgraded Diageo from an outperform rating to a neutral rating in a report on Monday, January 29th. Royal Bank of Canada downgraded Diageo from an outperform rating to a sector perform rating in a report on Monday, January 29th. They noted that the move was a valuation call. Finally, Jefferies Group set a $157.00 target price on Diageo and gave the stock a buy rating in a report on Thursday, January 11th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $153.00.
The business also recently declared a semiannual dividend, which will be paid on Wednesday, April 11th. Investors of record on Friday, February 23rd will be paid a $1.4232 dividend. This represents a yield of 1.96%. The ex-dividend date is Thursday, February 22nd.
Hedge funds have recently bought and sold shares of the stock. Trustcore Financial Services LLC acquired a new position in Diageo in the fourth quarter valued at about $107,000. Vestpro Financial Partners Inc. dba CPF Texas acquired a new position in Diageo in the fourth quarter valued at about $108,000. Icon Wealth Partners LLC acquired a new position in Diageo in the fourth quarter valued at about $151,000. IFG Advisory LLC acquired a new position in Diageo in the fourth quarter valued at about $203,000. Finally, Mission Wealth Management LP acquired a new position in Diageo in the fourth quarter valued at about $204,000. 11.81% of the stock is owned by institutional investors and hedge funds.
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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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