Diageo (NYSE:DEO) Shares Gap Down – Time to Sell?

Shares of Diageo plc (NYSE:DEO) gapped down prior to trading on Tuesday . The stock had previously closed at $110.60, but opened at $108.17. Diageo shares last traded at $107.84, with a volume of 112,934 shares traded.

Wall Street Analyst Weigh In

DEO has been the subject of a number of recent analyst reports. Berenberg Bank started coverage on shares of Diageo in a research note on Wednesday, April 2nd. They set a “buy” rating for the company. Deutsche Bank Aktiengesellschaft raised shares of Diageo from a “sell” rating to a “hold” rating in a research note on Monday, March 3rd. Finally, TD Cowen increased their price objective on Diageo from $124.00 to $129.00 and gave the stock a “hold” rating in a research note on Wednesday, January 8th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $129.00.

Diageo Price Performance

The company has a debt-to-equity ratio of 1.62, a quick ratio of 0.67 and a current ratio of 1.60. The firm has a market capitalization of $60.24 billion, a PE ratio of 15.81, a P/E/G ratio of 2.39 and a beta of 0.63. The stock has a fifty day moving average price of $107.83 and a 200-day moving average price of $119.13.

Diageo Dividend Announcement

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Canoe Financial LP increased its position in shares of Diageo by 88,407.3% during the fourth quarter. Canoe Financial LP now owns 8,113,468 shares of the company’s stock worth $1,031,465,000 after purchasing an additional 8,104,301 shares in the last quarter. FMR LLC increased its holdings in shares of Diageo by 10.9% during the fourth quarter. FMR LLC now owns 5,813,938 shares of the company’s stock valued at $739,126,000 after acquiring an additional 571,873 shares in the last quarter. Kovitz Investment Group Partners LLC raised its position in shares of Diageo by 234.4% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 2,600,702 shares of the company’s stock valued at $330,627,000 after purchasing an additional 1,822,994 shares during the last quarter. Royal Bank of Canada increased its stake in Diageo by 0.3% during the 4th quarter. Royal Bank of Canada now owns 1,540,800 shares of the company’s stock valued at $195,883,000 after purchasing an additional 3,876 shares in the last quarter. Finally, Bank of Montreal Can raised its holdings in shares of Diageo by 1,181.5% in the fourth quarter. Bank of Montreal Can now owns 1,406,004 shares of the company’s stock worth $178,745,000 after buying an additional 1,296,285 shares during the last quarter. 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.