Diageo (LON:DGE) Hits New 12-Month Low After Analyst Downgrade

Diageo plc (LON:DGE)’s share price reached a new 52-week low during mid-day trading on Thursday after Berenberg Bank lowered their price target on the stock from GBX 2,372 to GBX 2,370. Berenberg Bank currently has a buy rating on the stock. Diageo traded as low as GBX 1,682.50 and last traded at GBX 1,685, with a volume of 82938008 shares trading hands. The stock had previously closed at GBX 1,797.50.

A number of other research analysts also recently commented on DGE. Citigroup lowered their target price on Diageo from GBX 2,750 to GBX 2,480 and set a “buy” rating for the company in a research report on Monday, October 20th. UBS Group reiterated a “buy” rating and set a GBX 2,250 price objective on shares of Diageo in a research report on Friday, October 31st. The Goldman Sachs Group raised shares of Diageo to a “neutral” rating and set a GBX 2,000 price objective for the company in a research note on Thursday, August 7th. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Diageo from GBX 1,950 to GBX 1,915 and set a “hold” rating on the stock in a report on Thursday, October 16th. Finally, JPMorgan Chase & Co. restated a “neutral” rating on shares of Diageo in a research report on Thursday, August 7th. Four research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of GBX 2,276.88.

Insider Activity at Diageo

In related news, insider John Alexander Manzoni purchased 358 shares of the business’s stock in a transaction dated Friday, October 10th. The shares were purchased at an average cost of GBX 1,833 per share, for a total transaction of £6,562.14. Insiders purchased a total of 1,042 shares of company stock worth $2,012,634 over the last quarter. Corporate insiders own 0.16% of the company’s stock.

Diageo Price Performance

The company has a current ratio of 1.94, a quick ratio of 0.62 and a debt-to-equity ratio of 234.57. The firm’s 50-day moving average price is GBX 1,826.55 and its two-hundred day moving average price is GBX 1,939.57. The stock has a market cap of £38.39 billion, a PE ratio of 16.33, a PEG ratio of 1.75 and a beta of 0.36.

About Diageo

Diageo is a global leader in premium drinks, across spirits and beer, a business built on the principles and foundations laid by the giants of the industry.

With over 200 brands sold in 180 countries, our portfolio has remarkable breadth. From centuries-old names to exciting new entrants, and global giants to local legends, we’re building the very best brands out there, and with over 30,000 talented people based in over 135 countries, we’re a truly global company.