Diageo (NYSE:DEO) Shares Gap Up – Time to Buy?

Shares of Diageo plc (NYSE:DEO) 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 traded.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the company. Berenberg Bank initiated coverage on Diageo in a report on Wednesday. They issued a “buy” rating for the company. Deutsche Bank Aktiengesellschaft raised Diageo from a “sell” rating to a “hold” rating in a research note on Monday, March 3rd. UBS Group raised shares of Diageo from a “sell” rating to a “buy” rating in a research note on Wednesday, December 11th. Finally, TD Cowen upped their price objective on shares of Diageo from $124.00 to $129.00 and gave the stock a “hold” rating in a research report on Wednesday, January 8th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $129.00.

Diageo Stock Performance

The stock has a market cap of $57.96 billion, a price-to-earnings ratio of 15.21, a PEG ratio of 2.39 and a beta of 0.63. The firm’s 50-day moving average price is $110.12 and its two-hundred day moving average price is $121.06. The company has a debt-to-equity ratio of 1.62, a quick ratio of 0.67 and a current ratio of 1.60.

Diageo Announces Dividend

The company also recently declared a semi-annual dividend, which will be paid on Thursday, April 24th. Stockholders of record on Friday, February 28th will be paid a $1.62 dividend. The ex-dividend date is Friday, February 28th. This represents a dividend yield of 3.8%. Diageo’s dividend payout ratio (DPR) is 46.42%.

Institutional Trading of Diageo

Several institutional investors have recently added to or reduced their stakes in the stock. Canoe Financial LP grew its stake in shares of Diageo by 88,407.3% in the fourth quarter. Canoe Financial LP now owns 8,113,468 shares of the company’s stock worth $1,031,465,000 after acquiring an additional 8,104,301 shares in the last quarter. Kovitz Investment Group Partners LLC grew its stake in Diageo by 234.4% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 2,600,702 shares of the company’s stock worth $330,627,000 after purchasing an additional 1,822,994 shares in the last quarter. Bank of Montreal Can increased its holdings in Diageo by 1,181.5% during the 4th quarter. Bank of Montreal Can now owns 1,406,004 shares of the company’s stock worth $178,745,000 after purchasing an additional 1,296,285 shares during the period. Raymond James Financial Inc. acquired a new stake in Diageo in the 4th quarter valued at about $123,892,000. Finally, FMR LLC boosted its stake in shares of Diageo by 10.9% in the 4th quarter. FMR LLC now owns 5,813,938 shares of the company’s stock valued at $739,126,000 after buying an additional 571,873 shares during the period. Institutional investors and hedge funds own 8.97% of the company’s stock.

Diageo Company Profile

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.