Diageo (NYSE:DEO) Shares Gap Up – Should You Buy?

Diageo plc (NYSE:DEO)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $106.48, but opened at $109.04. Diageo shares last traded at $106.81, with a volume of 443,477 shares.

Analyst Ratings Changes

A number of research firms have issued reports on DEO. Jefferies Financial Group raised Diageo from a “hold” rating to a “buy” rating in a research note on Thursday, December 5th. TD Cowen lifted their price target on shares of Diageo from $124.00 to $129.00 and gave the company a “hold” rating in a research note on Wednesday, January 8th. Deutsche Bank Aktiengesellschaft raised shares of Diageo from a “sell” rating to a “hold” rating in a research report on Monday, March 3rd. Berenberg Bank started coverage on shares of Diageo in a research note on Wednesday. They issued a “buy” rating for the company. Finally, UBS Group raised Diageo from a “sell” rating to a “buy” rating in a research report on Wednesday, December 11th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, Diageo presently has a consensus rating of “Hold” and an average price target of $129.00.

Diageo Stock Performance

The company has a quick ratio of 0.67, a current ratio of 1.60 and a debt-to-equity ratio of 1.62. The stock’s fifty day moving average is $110.75 and its two-hundred day moving average is $121.35. The firm has a market capitalization of $59.61 billion, a price-to-earnings ratio of 15.64, a P/E/G ratio of 2.39 and a beta of 0.65.

Diageo Dividend Announcement

The firm also recently declared a semi-annual dividend, which will be paid on Thursday, April 24th. Shareholders of record on Friday, February 28th will be issued a dividend of $1.62 per share. This represents a yield of 3.8%. The ex-dividend date of this dividend is Friday, February 28th. Diageo’s dividend payout ratio is 46.42%.

Hedge Funds Weigh In On Diageo

Several large investors have recently modified their holdings of DEO. CoreFirst Bank & Trust acquired a new position in shares of Diageo in the fourth quarter valued at about $25,000. Orion Capital Management LLC acquired a new position in shares of Diageo during the fourth quarter worth $25,000. Eastern Bank raised its position in Diageo by 107.8% in the fourth quarter. Eastern Bank now owns 241 shares of the company’s stock valued at $31,000 after purchasing an additional 125 shares during the last quarter. BNP Paribas acquired a new stake in Diageo during the 4th quarter worth approximately $32,000. Finally, Measured Risk Portfolios Inc. acquired a new stake in Diageo in the fourth quarter valued at $32,000. 8.97% of the stock is owned by institutional investors.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products.