Diageo (NYSE:DEO) Shares Gap Up – Time to Buy?

Diageo plc (NYSE:DEO)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $108.31, but opened at $113.81. Diageo shares last traded at $114.04, with a volume of 222,158 shares traded.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. TD Cowen lifted their price objective on Diageo from $124.00 to $129.00 and gave the stock a “hold” rating in a report on Wednesday, January 8th. Jefferies Financial Group raised shares of Diageo from a “hold” rating to a “buy” rating in a research report on Thursday, December 5th. Deutsche Bank Aktiengesellschaft upgraded shares of Diageo from a “sell” rating to a “hold” rating in a research note on Monday. Finally, UBS Group raised shares of Diageo from a “sell” rating to a “buy” rating in a research report on Wednesday, December 11th. One research analyst has rated the stock with a sell rating, three have given a hold rating and four have issued a buy rating to the company. According to MarketBeat, Diageo presently has an average rating of “Hold” and an average target price of $129.00.

Diageo Stock Performance

The firm has a market capitalization of $62.86 billion, a price-to-earnings ratio of 16.51, a price-to-earnings-growth ratio of 2.39 and a beta of 0.66. The company has a 50-day moving average of $116.69 and a 200-day moving average of $124.66. The company has a current ratio of 1.60, a quick ratio of 0.67 and a debt-to-equity ratio of 1.62.

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 given a $1.62 dividend. The ex-dividend date is Friday, February 28th. This represents a dividend yield of 3.8%. Diageo’s payout ratio is currently 46.42%.

Institutional Investors Weigh In On Diageo

A number of institutional investors have recently modified their holdings of DEO. Brooklyn Investment Group acquired a new position in Diageo in the third quarter valued at approximately $25,000. CoreFirst Bank & Trust acquired a new stake in Diageo in the fourth quarter worth $25,000. Orion Capital Management LLC bought a new stake in Diageo in the fourth quarter valued at $25,000. Eastern Bank grew its position in shares of Diageo by 107.8% during the fourth quarter. Eastern Bank now owns 241 shares of the company’s stock worth $31,000 after acquiring an additional 125 shares during the last quarter. Finally, BNP Paribas acquired a new stake in shares of Diageo in the 4th quarter worth about $32,000. Institutional investors own 8.97% of the company’s stock.

Diageo Company Profile

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.