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

Diageo plc (NYSE:DEO)’s stock 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.

Wall Street Analyst Weigh In

DEO has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft upgraded shares of Diageo from a “sell” rating to a “hold” rating in a research note on Monday, March 3rd. Berenberg Bank assumed coverage on Diageo in a research report on Wednesday. They set a “buy” rating on the stock. TD Cowen increased their price objective on Diageo from $124.00 to $129.00 and gave the company a “hold” rating in a report on Wednesday, January 8th. Finally, UBS Group raised shares of Diageo from a “sell” rating to a “buy” rating in a report on Wednesday, December 11th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $129.00.

Diageo Price Performance

The company has a 50 day moving average price of $110.12 and a 200 day moving average price of $121.06. The company has a debt-to-equity ratio of 1.62, a current ratio of 1.60 and a quick ratio of 0.67. The firm has a market cap of $57.96 billion, a PE ratio of 15.21, a PEG ratio of 2.39 and a beta of 0.63.

Diageo Dividend Announcement

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

Institutional Inflows and Outflows

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