Diageo (LON:DGE) Stock Crosses Above 200-Day Moving Average – Here’s Why

Shares of Diageo plc (LON:DGE) passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of GBX 0 ($0.00) and traded as high as GBX 2,445 ($30.15). Diageo shares last traded at GBX 2,438 ($30.06), with a volume of 2,172,502 shares.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Jefferies Financial Group upgraded shares of Diageo to a “buy” rating and set a GBX 2,800 ($34.53) target price for the company in a research report on Friday, December 6th. UBS Group raised Diageo to a “buy” rating and upped their price objective for the stock from GBX 2,300 ($28.36) to GBX 2,920 ($36.00) in a report on Thursday, December 12th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a GBX 2,500 ($30.83) price target on shares of Diageo in a research note on Tuesday, January 7th. One research analyst has rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of GBX 2,876.67 ($35.47).

Diageo Price Performance

The company has a quick ratio of 0.62, a current ratio of 1.53 and a debt-to-equity ratio of 186.26. The firm has a market capitalization of £54.12 billion, a P/E ratio of 1,846.97, a PEG ratio of 1.75 and a beta of 0.36. The stock’s fifty day moving average is GBX 2,436.55.

Insiders Place Their Bets

In related news, insider Javier Ferrán purchased 339 shares of Diageo stock in a transaction that occurred on Tuesday, December 10th. The stock was bought at an average cost of GBX 2,446 ($30.16) per share, for a total transaction of £8,291.94 ($10,224.34). Over the last quarter, insiders purchased 696 shares of company stock valued at $1,669,084. Insiders own 0.11% of the company’s stock.

Diageo Company Profile

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. It offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavoured malt beverages. The company also provides Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as ready to drink and non-alcoholic products.