Diageo (NYSE:DEO) Shares Gap Down - Time to Sell?

Diageo plc (NYSE:DEO - Get Free Report) 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 trading hands.

Wall Street Analysts Forecast Growth

DEO has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft upgraded Diageo from a "sell" rating to a "hold" rating in a report on Monday, March 3rd. Berenberg Bank assumed coverage on shares of Diageo in a research note on Wednesday, April 2nd. They set a "buy" rating on the stock. 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 equities research analyst has rated the stock with a sell rating, three have issued a hold rating and five have given a buy rating to the company's stock. According to MarketBeat.com, Diageo has an average rating of "Hold" and a consensus target price of $129.00.

Diageo Price Performance

The firm's fifty day simple moving average is $107.87 and its 200-day simple moving average is $118.71. The firm has a market capitalization of $60.85 billion, a PE ratio of 15.97, a PEG ratio of 2.39 and a beta of 0.63. The company has a quick ratio of 0.67, a current ratio of 1.60 and a debt-to-equity ratio of 1.62.

Diageo Announces Dividend

The company also recently disclosed 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 payout ratio is currently 46.42%.

Institutional Trading of Diageo

Institutional investors and hedge funds have recently modified their holdings of the business. Morse Asset Management Inc bought a new stake in shares of Diageo in the third quarter worth approximately $95,000. Anchor Investment Management LLC lifted its stake in shares of Diageo by 71.7% during the 3rd quarter. Anchor Investment Management LLC now owns 1,533 shares of the company's stock valued at $215,000 after buying an additional 640 shares in the last quarter. World Investment Advisors LLC purchased a new position in shares of Diageo in the third quarter valued at about $5,510,000. Wilmington Savings Fund Society FSB boosted its stake in Diageo by 550.1% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 10,532 shares of the company's stock worth $1,478,000 after purchasing an additional 8,912 shares during the period. Finally, Optimist Retirement Group LLC boosted its position in shares of Diageo by 23.7% during the third quarter. Optimist Retirement Group LLC now owns 16,681 shares of the company's stock worth $2,341,000 after acquiring an additional 3,193 shares during the last quarter. 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.