Diageo (LON:DGE) Sets New 12-Month Low – Here’s Why

Diageo plc (LON:DGE) shares reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as GBX 2,031 ($26.15) and last traded at GBX 2,032.73 ($26.17), with a volume of 30990139 shares. The stock had previously closed at GBX 2,051.50 ($26.41).

Wall Street Analysts Forecast Growth

Several analysts have issued reports on DGE shares. UBS Group upgraded shares of Diageo to a “buy” rating and upped their price target for the company from GBX 2,300 ($29.61) to GBX 2,920 ($37.59) in a research report on Thursday, December 12th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a GBX 2,500 ($32.19) price target on shares of Diageo in a research note on Tuesday, January 7th. Finally, Jefferies Financial Group raised shares of Diageo to a “buy” rating and set a GBX 2,800 ($36.05) target price on the stock in a research report on Friday, December 6th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of GBX 2,876.67 ($37.04).

Diageo Trading Down 0.8 %

The company has a debt-to-equity ratio of 234.57, a quick ratio of 0.62 and a current ratio of 1.94. The company has a market capitalization of £44.84 billion, a P/E ratio of 11.31, a PEG ratio of 1.75 and a beta of 0.36. The stock has a fifty day moving average of GBX 2,218.76 and a 200 day moving average of GBX 2,390.22.

Diageo Increases Dividend

The business also recently declared a dividend, which will be paid on Thursday, March 27th. Shareholders of record on Thursday, March 20th will be paid a GBX 20.75 ($0.27) dividend. The ex-dividend date is Thursday, March 20th. This represents a yield of 3.66%. This is a boost from Diageo’s previous dividend of $0.63. Diageo’s payout ratio is presently 44.25%.

Insiders Place Their Bets

In related news, insider Nik Jhangiani sold 65,676 shares of Diageo stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of GBX 2,165 ($27.87), for a total transaction of £1,421,885.40 ($1,830,675.16). Insiders have bought a total of 19 shares of company stock valued at $43,455 in the last quarter. 0.11% of the stock is currently owned by insiders.

Diageo Company Profile

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