Diageo plc (DEO) – What Are Brokerages Thinking About This Stock?

Diageo plc (NYSE:DEO) has been given a consensus rating of “Hold” by the eighteen brokerages that are presently covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation, seven have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $99.75.

Several research firms have weighed in on DEO. Morningstar lowered Diageo to a “hold” rating in a research note on Friday, August 7th. The Goldman Sachs Group reiterated a “neutral” rating on shares of Diageo in a research report on Monday, August 10th. JPMorgan Chase & Co. restated a “neutral” rating on shares of Diageo in a research report on Tuesday, October 13th. Berenberg Bank reiterated a “buy” rating on shares of Diageo in a research report on Sunday, August 9th. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of Diageo in a research note on Tuesday, October 13th.

Diageo News Roundup

Here are the key news stories impacting Diageo this week:

• Positive Sentiment: Fiscal Q1 organic net sales edged higher, and Diageo kept its outlook unchanged. CEO Dave Lewis described signs of recovery, offering evidence that trading may be stabilizing. Reuters article: Diageo keeps outlook after quarterly organic net sales edge higher The Drinks Business article: Diageo sales rise as Dave Lewis sees signs of recovery
• Positive Sentiment: One analysis says Diageo could be 36% undervalued, while another noted the share price was nearing a 52-week high. These views may support investor confidence, though the valuation estimate is not a company forecast. Yahoo Finance article: Diageo stock may be 36% undervalued
• Neutral Sentiment: Management is positioning marketing as central to its turnaround. Whether that strategy, alongside restructuring and price cuts, produces a durable improvement remains uncertain. Marketing Week article: Diageo CEO on marketing and turnaround BeverageDaily article: Can Diageo’s price cuts and restructure get it back on track?
• Negative Sentiment: The U.S. remains a challenging market, with some major brands selling poorly; rising competition in stout adds another concern. Price cuts could also pressure profitability if they fail to lift demand enough. Wall Street Journal article: Diageo says it is making progress in a tough U.S. market Yahoo Finance article on rival stout pressure

Diageo Price Performance

DEO stock opened at $99.77 on Friday. Diageo has a one year low of $72.45 and a one year high of $102.74. The company has a quick ratio of 0.62, a current ratio of 1.60 and a debt-to-equity ratio of 1.53. The company has a 50 day moving average price of $90.00 and a two-hundred day moving average price of $86.09.

Diageo Dividend Announcement

The business also recently disclosed a dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, October 16th will be paid a dividend of $1.20 per share. This represents a dividend yield of 252.0%. The ex-dividend date is Friday, October 16th.

Hedge Funds Weigh In On Diageo

Institutional investors have recently added to or reduced their stakes in the company. First Trust Advisors LP lifted its holdings in shares of Diageo by 12.0% in the first quarter. First Trust Advisors LP now owns 463,572 shares of the company’s stock valued at $34,513,000 after purchasing an additional 49,504 shares in the last quarter. CORDA Investment Management LLC. boosted its position in Diageo by 14.5% during the first quarter. CORDA Investment Management LLC. now owns 169,084 shares of the company’s stock valued at $12,588,000 after purchasing an additional 21,446 shares in the last quarter. Gamco Investors INC. ET AL raised its holdings in Diageo by 10.2% in the 1st quarter. Gamco Investors INC. ET AL now owns 186,176 shares of the company’s stock worth $13,861,000 after purchasing an additional 17,241 shares during the period. Dimensional Fund Advisors LP boosted its stake in Diageo by 53.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,372,808 shares of the company’s stock worth $102,124,000 after buying an additional 477,999 shares during the period. Finally, Bank of New York Mellon Corp boosted its holdings in shares of Diageo by 9.5% in the 1st quarter. Bank of New York Mellon Corp now owns 160,477 shares of the company’s stock valued at $11,948,000 after buying an additional 13,928 shares in the last quarter. 8.97% of the stock is currently owned by institutional investors and hedge funds.

Diageo Company Profile

Diageo plc is a global beverage company that produces and markets alcoholic drinks, including spirits, beer and ready-to-drink products. Its portfolio includes brands such as Johnnie Walker, Guinness, Smirnoff, Baileys, Tanqueray and Captain Morgan.

The company sells its products in markets around the world through a combination of owned operations, distributors and other commercial partners. Its offerings span categories including Scotch whisky, vodka, gin, rum, tequila, liqueurs and stout.

Diageo was formed in 1997 through the merger of Guinness and Grand Metropolitan.