Diageo (NYSE:DEO) Shares Gap Down – Here’s Why

Diageo plc (NYSE:DEO) gapped down before the market opened 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.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on DEO. Berenberg Bank began coverage on shares of Diageo in a research report on Wednesday, April 2nd. They issued a “buy” rating for the company. Deutsche Bank Aktiengesellschaft upgraded shares of Diageo from a “sell” rating to a “hold” rating in a research report on Monday, March 3rd. Finally, TD Cowen upped their price objective on shares of Diageo from $124.00 to $129.00 and gave the stock a “hold” rating in a report on Wednesday, January 8th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $129.00.

Diageo Price Performance

The firm has a market capitalization of $60.14 billion, a P/E ratio of 15.78, a P/E/G ratio of 2.39 and a beta of 0.63. 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 stock has a 50 day moving average of $107.95 and a two-hundred day moving average of $119.29.

Diageo Dividend Announcement

The company also recently announced a semi-annual dividend, which will be paid on Thursday, April 24th. Investors of record on Friday, February 28th will be issued a $1.62 dividend. The ex-dividend date is Friday, February 28th. This represents a yield of 3.8%. Diageo’s dividend payout ratio (DPR) is presently 46.42%.

Institutional Investors Weigh In On Diageo

A number of hedge funds have recently bought and sold shares of the company. Integrated Advisors Network LLC increased its position in Diageo by 36.1% in the 1st quarter. Integrated Advisors Network LLC now owns 2,690 shares of the company’s stock worth $282,000 after buying an additional 714 shares during the period. Farther Finance Advisors LLC raised its stake in Diageo by 8.2% during the 1st quarter. Farther Finance Advisors LLC now owns 18,680 shares of the company’s stock valued at $1,952,000 after purchasing an additional 1,423 shares during the last quarter. Portside Wealth Group LLC boosted its holdings in Diageo by 6.9% in the 1st quarter. Portside Wealth Group LLC now owns 4,957 shares of the company’s stock valued at $519,000 after purchasing an additional 320 shares during the period. Wedge Capital Management L L P NC grew its position in Diageo by 1.3% in the 1st quarter. Wedge Capital Management L L P NC now owns 62,198 shares of the company’s stock worth $6,518,000 after purchasing an additional 806 shares during the last quarter. Finally, Park Avenue Securities LLC increased its holdings in shares of Diageo by 3.9% during the 1st quarter. Park Avenue Securities LLC now owns 10,645 shares of the company’s stock worth $1,116,000 after purchasing an additional 400 shares during the period. 8.97% of the stock is currently owned by institutional investors.

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.