Diageo (LON:DGE) Reaches New 1-Year Low - Time to Sell?

Diageo plc (LON:DGE - Get Free Report)'s share price reached a new 52-week low on Monday . The company traded as low as GBX 2,003.60 ($26.25) and last traded at GBX 2,017 ($26.43), with a volume of 36649563 shares traded. The stock had previously closed at GBX 2,046.50 ($26.81).

Wall Street Analyst Weigh In

DGE has been the topic of a number of recent research reports. JPMorgan Chase & Co. reissued a "neutral" rating and issued a GBX 2,500 ($32.76) target price on shares of Diageo in a report on Tuesday, January 7th. Jefferies Financial Group upgraded shares of Diageo to a "buy" rating and set a GBX 2,800 ($36.69) price objective for the company in a research report on Friday, December 6th. Finally, UBS Group upgraded shares of Diageo to a "buy" rating and raised their target price for the stock from GBX 2,300 ($30.14) to GBX 2,920 ($38.26) in a research note on Thursday, December 12th. One research analyst has rated the stock with a sell rating, two have given a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of GBX 2,876.67 ($37.69).

Diageo Price Performance

The firm has a market cap of £44.93 billion, a PE ratio of 11.34, a price-to-earnings-growth ratio of 1.75 and a beta of 0.36. The company has a current ratio of 1.94, a quick ratio of 0.62 and a debt-to-equity ratio of 234.57. The company has a 50 day moving average price of GBX 2,172.80 and a 200 day moving average price of GBX 2,373.30.

Remove Ads

Diageo Increases Dividend

The company also recently announced a dividend, which was paid on Thursday, March 27th. Shareholders of record on Thursday, March 20th were given a dividend of GBX 20.75 ($0.27) per share. This represents a yield of 3.66%. This is an increase from Diageo's previous dividend of $0.63. The ex-dividend date of this dividend was Thursday, March 20th. Diageo's payout ratio is presently 44.25%.

Insider Activity

In other Diageo news, insider Nik Jhangiani sold 65,676 shares of the company's stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of GBX 2,165 ($28.37), for a total value of £1,421,885.40 ($1,863,057.39). Insiders bought a total of 19 shares of company stock worth $43,455 over the last 90 days. 0.11% of the stock is currently owned by corporate insiders.

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.