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

Zacks Investment Research cut shares of Diageo (NYSE:DEOGet Rating) from a hold rating to a sell rating in a research report released on Friday, Zacks.com reports. Zacks Investment Research currently has $214.00 price target 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.”

Several other equities research analysts have also issued reports on the company. Barclays dropped their price objective on Diageo from GBX 4,800 ($61.18) to GBX 4,700 ($59.90) in a research note on Friday, April 22nd. 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 note on Friday, January 28th. Credit Suisse Group lifted their price target on Diageo from GBX 4,500 ($57.35) to GBX 4,700 ($59.90) in a research note on Wednesday, April 6th. JPMorgan Chase & Co. raised Diageo from a neutral rating to an overweight rating in a research note on Thursday, March 17th. Finally, Deutsche Bank Aktiengesellschaft lowered Diageo from a buy rating to a hold rating in a research note on Wednesday. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $2,923.17.

NYSE:DEO opened at $198.68 on Friday. Diageo has a 52-week low of $175.46 and a 52-week high of $223.14. The stock has a fifty day moving average of $198.70 and a 200 day moving average of $203.80. The company has a debt-to-equity ratio of 1.40, a current ratio of 1.52 and a quick ratio of 0.70.

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

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. SRS Capital Advisors Inc. raised its position in Diageo by 41.0% during the 4th 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 last quarter. Sound View Wealth Advisors Group LLC raised its position in shares of Diageo by 0.4% in the 4th quarter. Sound View Wealth Advisors Group LLC now owns 14,298 shares of the company’s stock worth $3,148,000 after acquiring an additional 51 shares in the last quarter. First National Bank of Hutchinson raised its position in shares of Diageo by 3.1% in the 4th quarter. First National Bank of Hutchinson now owns 1,676 shares of the company’s stock worth $369,000 after acquiring an additional 51 shares in the last quarter. Evoke Wealth LLC raised its position in shares of Diageo by 9.3% in the 3rd quarter. Evoke Wealth LLC now owns 610 shares of the company’s stock worth $119,000 after acquiring an additional 52 shares in the last quarter. Finally, Welch & Forbes LLC raised its position in shares of Diageo by 0.6% in the 4th quarter. Welch & Forbes LLC now owns 8,984 shares of the company’s stock worth $1,977,000 after acquiring an additional 52 shares in the last quarter. 9.23% of the stock is owned by institutional investors and hedge funds.

About Diageo (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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