Diageo (NYSE:DEO) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Diageo (NYSE:DEOGet Rating) from a hold rating to a sell rating in a research note issued to investors on Friday morning, Zacks.com reports. They currently have $214.00 target price on the stock.

According to Zacks, “Diageo has outpaced the industry in the past year on continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company’s first-half fiscal 2022 performance. The company witnessed sales, operating margin and earnings growth in first-half fiscal 2021 driven by organic sales growth across all regions. Strong recovery in gross margin and operating cost leverage along with higher marketing investments aided organic operating margin growth. Moreover, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation. It provided a decent view for fiscal 2022, with organic sales momentum likely to continue in the second half of fiscal 2022. However, continued inflationary pressures and currency headwinds are concerning.”

Other equities research analysts have also recently issued reports about the company. Barclays reduced their target price on Diageo from GBX 4,800 ($61.18) to GBX 4,700 ($59.90) in a report on Friday, April 22nd. JPMorgan Chase & Co. upgraded Diageo from a neutral rating to an overweight rating in a research report on Thursday, March 17th. Credit Suisse Group lifted their price target on Diageo from GBX 4,500 ($57.35) to GBX 4,700 ($59.90) in a research report on Wednesday, April 6th. Deutsche Bank Aktiengesellschaft lowered Diageo from a buy rating to a hold rating in a research report on Wednesday. Finally, Royal Bank of Canada lifted their price target on Diageo from GBX 3,100 ($39.51) to GBX 3,200 ($40.79) in a research report on Friday, January 28th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of Hold and an average target price of $2,923.17.

Shares of DEO stock opened at $198.68 on Friday. Diageo has a 12-month low of $175.46 and a 12-month high of $223.14. The company has a quick ratio of 0.70, a current ratio of 1.52 and a debt-to-equity ratio of 1.40. The stock’s 50-day moving average price is $198.70 and its 200-day moving average price is $203.80.

The firm also recently announced a semi-annual dividend, which was paid on Tuesday, April 12th. Shareholders of record on Friday, February 25th were given a dividend of $1.5714 per share. The ex-dividend date was Thursday, February 24th. This represents a dividend yield of 1.9%.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. SRS Capital Advisors Inc. boosted its holdings in shares of Diageo by 41.0% in the fourth quarter. SRS Capital Advisors Inc. now owns 172 shares of the company’s stock valued at $38,000 after purchasing an additional 50 shares during the period. Sound View Wealth Advisors Group LLC boosted its holdings in shares of Diageo by 0.4% in the fourth quarter. Sound View Wealth Advisors Group LLC now owns 14,298 shares of the company’s stock valued at $3,148,000 after purchasing an additional 51 shares during the period. First National Bank of Hutchinson boosted its holdings in shares of Diageo by 3.1% in the fourth quarter. First National Bank of Hutchinson now owns 1,676 shares of the company’s stock valued at $369,000 after purchasing an additional 51 shares during the period. Evoke Wealth LLC boosted its holdings in shares of Diageo by 9.3% in the third quarter. Evoke Wealth LLC now owns 610 shares of the company’s stock valued at $119,000 after purchasing an additional 52 shares during the period. Finally, Welch & Forbes LLC boosted its holdings in shares of Diageo by 0.6% in the fourth quarter. Welch & Forbes LLC now owns 8,984 shares of the company’s stock valued at $1,977,000 after purchasing an additional 52 shares during the period. Hedge funds and other institutional investors own 9.23% of the company’s stock.

Diageo Company Profile (Get Rating)

Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, Irish cream liqueur, raki, liqueur, wine, tequila, Canadian whisky, American whiskey, cachaca, and brandy, as well as beer, including cider and non-alcoholic products.

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