Diageo plc (NYSE:DEO), a leading producer and marketer of alcoholic beverages, has recently received an average rating of “Hold” from eight analysts, as reported by Bloomberg Ratings. Out of these eight analysts, one has given a sell recommendation, five have issued a hold recommendation, and two recommend buying the company’s stock.
According to the data gathered over the past year, brokers have set an average 12-month price target of $166.37 for Diageo shares. This indicates that analysts expect the stock to remain relatively stable in the coming months.
Furthermore, several hedge funds and institutional investors have made changes to their stakes in Diageo recently. Bank of America Corp DE increased its position in the company by 6.4% during the first quarter. With this increase, Bank of America Corp DE now holds 5,187,272 shares of Diageo stock valued at approximately $939,830,000.
Another significant institutional investor is Morgan Stanley, which boosted its holdings in Diageo by 13.2% during the fourth quarter. Currently owning 3,725,502 shares worth $663,848,000 after purchasing an additional 433,105 shares last quarter.
FMR LLC also increased its holdings in Diageo by 5.8% in the first quarter and now owns 3,437,932 shares valued at $622,885,000 after acquiring an additional 188,795 shares during that period.
Additionally Clearbridge Investments LLC expanded its holdings by a remarkable 56.9% during the first quarter. The firm currently holds 2 ,384 ,684 shares with an approximate worth of $432 ,057 ,000 after acquiring an additional 864 ,824 shares last quarter.
Lastly Charles Schwab Investment Management Inc., gradually increased its holdings by approximately 1 .3 % during Q1-2023 .Charles Schwab now holds 2,039,735 shares valued at $353,217,000 after adding 25 ,594 shares to its portfolio.
Notably, these hedge funds and institutional investors collectively own 8.97% of the total outstanding shares of Diageo.
Diageo plc and its subsidiaries specialize in the production, marketing, and sale of a wide range of alcoholic beverages. The company offers various spirits such as scotch, gin, vodka, rum, liqueur; various wines including raki and tequila; as well as beer options like cider and flavored malt beverages to cater to diverse consumer preferences.
Moreover, Diageo provides consumers with a selection of whiskies from different regions like Canadian, Irish American Whiskeys along with Indian-Made Foreign Liquor whiskies. In addition to alcoholic products the company also develops ready-to-drink alternatives and non-alcoholic beverages for those who prefer not to consume alcohol.
Overall, Diageo continues to be a prominent player in the global market for alcoholic beverages due to its extensive product offerings across various categories. With a multitude of institutional investors showing faith in the company’s future potential by increasing their stakes or maintaining their current positions within the firm’s stock holdings.
Read Our Latest Research Report on Diageo
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Comprehensive Analysis and Insights: Evaluating Diageo’s Performance and Future Prospects
On September 27, 2023, a series of research analysts released reports on Diageo plc (DEO) shares, providing a comprehensive analysis of the company’s performance and offering valuable insights for potential investors. These reports shed light on various aspects of Diageo’s operations and helped evaluate its future prospects.
Credit Suisse Group, one of the leading financial institutions, revised its price objective for Diageo downwards from GBX 3,850 ($47.01) to GBX 3,800 ($46.40). This adjustment reflected their assessment of the company’s current market value based on the prevailing economic landscape. Their research note was published on August 9th, highlighting Credit Suisse Group’s views on Diageo’s potential trajectory.
In a similar vein, The Goldman Sachs Group downgraded their rating for Diageo from “buy” to “neutral” in a research note dated June 14th. Goldman Sachs’ decision was likely influenced by a reevaluation of their initial assessment and an adjustment in their investment recommendations accordingly.
Deutsche Bank Aktiengesellschaft took a more positive stance by raising the target price for Diageo from GBX 2,920 ($35.66) to GBX 2,950 ($36.02) in their research note published on September 8th. This upward revision suggests that Deutsche Bank expects an increase in Diageo’s stock value based on several factors they considered during their analysis.
On the other hand, JPMorgan Chase & Co. adopted a more cautious approach by lowering their target price for Diageo shares from GBX 4,500 ($54.95) to GBX 4,000 ($48.85) in a research note issued on June 20th. This adjustment might reflect concerns over macroeconomic trends or industry-specific challenges that could impact Diageo’s performance moving forward.
More recently, StockNews.com initiated coverage on Diageo in a research note dated August 17th. They issued a “hold” rating for the company, implying a stable outlook without significant growth potential in the near term.
Diageo plc is involved in the production, marketing, and sale of alcoholic beverages globally. Their diverse portfolio includes scotch, gin, vodka, rum, liqueur, wine, tequila, Chinese white spirits, cachaça, brandy, beer (including cider and flavored malt beverages), as well as various Canadian, Irish, American, and Indian-made foreign liquor whiskies. Additionally, they offer ready-to-drink and non-alcoholic products.
Diageo’s stock opened at $150.61 on September 27th. The company’s financial health is reflected in its current ratio of 1.63 and quick ratio of 0.62. Moreover, it has a debt-to-equity ratio of 1.67. Investors commonly use these ratios to assess a company’s liquidity position and financial stability.
The stock has a fifty-day moving average price of $167.17 and a two-hundred-day moving average price of $173.81. These figures indicate how the stock value has fluctuated over specific periods.
In terms of dividend payments to shareholders, Diageo recently announced an increase in its semi-annual dividend from $1.43 to $2.5089 per share. The dividend will be paid on October 17th to investors who were recorded on the books as of August 25th. This represents a yield of 2.4%, suggesting that Diageo is committed to rewarding its shareholders through regular dividends.
In conclusion, Diageo plc operates in the lucrative alcoholic beverages industry with an extensive product range catering to various markets worldwide. Research analysts have provided valuable insights into the performance and potential trajectory of the company through their reports and assessments, offering investors valuable information to make informed decisions. While some analysts revised their target prices downwards, others expressed a more positive outlook. Ultimately, it is up to individual investors to assess these reports and use them as tools for making sound investment choices.
