Diageo (NYSE:DEO) Shares Gap Down – Should You Sell?

Diageo plc (NYSE:DEO)’s share price gapped down before the market opened on Friday . The stock had previously closed at $114.19, but opened at $111.37. Diageo shares last traded at $112.93, with a volume of 118,311 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. TD Cowen lifted their target price on Diageo from $124.00 to $129.00 and gave the company a “hold” rating in a research note on Wednesday, January 8th. Jefferies Financial Group raised Diageo from a “hold” rating to a “buy” rating in a research note on Thursday, December 5th. UBS Group raised Diageo from a “sell” rating to a “buy” rating in a research note on Wednesday, December 11th. Finally, Deutsche Bank Aktiengesellschaft raised Diageo from a “sell” rating to a “hold” rating in a research note on Monday, March 3rd. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $129.00.

Diageo Stock Down 1.2 %

The company has a current ratio of 1.60, a quick ratio of 0.67 and a debt-to-equity ratio of 1.62. The firm has a market capitalization of $62.75 billion, a price-to-earnings ratio of 16.47, a PEG ratio of 2.39 and a beta of 0.65. The stock has a fifty day moving average of $115.90 and a 200-day moving average of $124.37.

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

Institutional Inflows and Outflows

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