Diageo plc (NYSE:DEO) Given Average Rating of “Hold” by Brokerages

Shares of Diageo plc (NYSE:DEO) have been given an average rating of “Hold” by the fourteen analysts that are presently covering the stock, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation and five have issued a buy recommendation on the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $116.50.

A number of brokerages have issued reports on DEO. Sanford C. Bernstein set a $124.00 price objective on shares of Diageo and gave the company an “outperform” rating in a research note on Monday, December 29th. Barclays reaffirmed an “overweight” rating on shares of Diageo in a research note on Thursday, December 11th. UBS Group reissued a “neutral” rating on shares of Diageo in a research note on Wednesday, December 3rd. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Diageo in a research report on Friday, November 28th. Finally, Royal Bank Of Canada raised Diageo from a “sector perform” rating to an “outperform” rating in a research note on Tuesday, January 6th.

Key Headlines Impacting Diageo

Here are the key news stories impacting Diageo this week:

• Positive Sentiment: Diageo agreed to sell its Royal Challengers Bengaluru (RCB) IPL/WPL franchise to a Blackstone-backed consortium for about $1.8 billion, a large one-off disposal that will generate significant cash for the group and was the outcome of a strategic review. Article Title
• Positive Sentiment: Analysts estimate Diageo could net more than $1 billion from the sale after the United Spirits ownership structure — a sizable cash inflow that can be used to pay down the group’s elevated debt or fund other priorities. Article Title
• Positive Sentiment: UBS called the sale a “rich valuation” (reported multiple ~54x EBITDA) and said the timing — after RCB’s recent success — makes the transaction strategically helpful for the new CEO to chip away at Diageo’s debt burden. Article Title
• Positive Sentiment: Several broker moves reflect reduced near-term downside risk: BNP Paribas Exane upgraded Diageo from “underperform” to “neutral,” and Zacks moved it from “strong sell” to “hold,” which may steady sentiment after the disposal news. Finviz Note Zacks Note
• Negative Sentiment: Offsetting the positive cash story, at least one outlet reports a downgrade from “buy” to “hold,” reflecting lingering concerns about Diageo’s valuation, leverage and near-term performance that could pressure the share price despite the sale. Article Title

Hedge Funds Weigh In On Diageo

Several institutional investors and hedge funds have recently made changes to their positions in DEO. Twin Peaks Wealth Advisors LLC bought a new position in Diageo during the second quarter worth about $26,000. Arlington Trust Co LLC lifted its holdings in shares of Diageo by 3,885.7% during the 3rd quarter. Arlington Trust Co LLC now owns 279 shares of the company’s stock valued at $27,000 after purchasing an additional 272 shares in the last quarter. Spire Wealth Management grew its position in shares of Diageo by 123.6% in the 4th quarter. Spire Wealth Management now owns 322 shares of the company’s stock valued at $28,000 after purchasing an additional 178 shares during the period. New England Capital Financial Advisors LLC bought a new stake in Diageo during the 3rd quarter worth approximately $29,000. Finally, Sound Income Strategies LLC raised its holdings in Diageo by 8,000.0% during the 4th quarter. Sound Income Strategies LLC now owns 324 shares of the company’s stock worth $29,000 after buying an additional 320 shares during the period. Institutional investors and hedge funds own 8.97% of the company’s stock.

Diageo Trading Down 0.4%

NYSE:DEO opened at $73.72 on Friday. The company has a quick ratio of 0.71, a current ratio of 1.60 and a debt-to-equity ratio of 1.53. The stock’s fifty day moving average price is $88.00 and its two-hundred day moving average price is $91.16. Diageo has a 52-week low of $72.45 and a 52-week high of $116.69.

Diageo Dividend Announcement

The company also recently disclosed a dividend, which will be paid on Thursday, June 4th. Investors of record on Friday, April 17th will be issued a dividend of $0.80 per share. The ex-dividend date is Friday, April 17th. This represents a yield of 207.0%.

Diageo Company Profile

Diageo plc is a global producer, marketer and distributor of alcoholic beverages, headquartered in London, England. The company was created through the 1997 merger of Guinness plc and Grand Metropolitan plc and is publicly traded on multiple exchanges, including the New York Stock Exchange (NYSE: DEO) and the London Stock Exchange. Diageo operates a worldwide business, selling products in a broad range of markets across the Americas, Europe, Africa, Asia and Latin America.

Diageo’s core activities cover the production, marketing and sale of a diverse portfolio of spirits, beer and liqueurs.