Diageo (LON:DGE) Trading Down 9.5% – Should You Sell?

Shares of Diageo plc (LON:DGE) were down 9.5% during trading on Wednesday . The stock traded as low as GBX 1,681.50 and last traded at GBX 1,696.78. Approximately 186,360,203 shares traded hands during trading, an increase of 266% from the average daily volume of 50,949,934 shares. The stock had previously closed at GBX 1,874.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Berenberg Bank reduced their price objective on Diageo from GBX 2,372 to GBX 2,370 and set a “buy” rating for the company in a report on Thursday, November 6th. Jefferies Financial Group dropped their price target on Diageo from GBX 2,300 to GBX 2,000 and set a “buy” rating for the company in a report on Thursday, January 15th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a GBX 2,000 price objective on shares of Diageo in a report on Monday, February 2nd. Deutsche Bank Aktiengesellschaft dropped their target price on Diageo from GBX 1,840 to GBX 1,790 and set a “hold” rating for the company in a report on Friday, November 28th. Finally, JPMorgan Chase & Co. restated a “neutral” rating on shares of Diageo in a research note on Thursday, January 22nd. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 2,111.25.

Diageo Price Performance

The company has a quick ratio of 0.62, a current ratio of 1.94 and a debt-to-equity ratio of 234.57. The stock has a market capitalization of £36.10 billion, a price-to-earnings ratio of 15.36, a P/E/G ratio of 1.75 and a beta of 0.36. The business’s 50 day simple moving average is GBX 1,686.86 and its 200-day simple moving average is GBX 1,782.96.

Insider Activity

In other Diageo news, insider John Alexander Manzoni purchased 410 shares of the stock in a transaction dated Wednesday, December 10th. The stock was bought at an average price of GBX 1,600 per share, with a total value of £6,560. In the last 90 days, insiders acquired 1,199 shares of company stock valued at $2,012,531. Company insiders own 0.16% of the company’s stock.

Diageo Company Profile

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.