Diageo (LON:DGE) Hits New 1-Year Low – What’s Next?

Shares of Diageo plc (LON:DGE) reached a new 52-week low on Wednesday . The stock traded as low as GBX 2,046 ($26.60) and last traded at GBX 2,047.50 ($26.62), with a volume of 51615719 shares. The stock had previously closed at GBX 2,080 ($27.04).

Wall Street Analyst Weigh In

DGE has been the subject of several recent analyst reports. JPMorgan Chase & Co. restated a “neutral” rating and issued a GBX 2,500 ($32.50) price target on shares of Diageo in a research note on Tuesday, January 7th. UBS Group upgraded Diageo to a “buy” rating and upped their price target for the stock from GBX 2,300 ($29.90) to GBX 2,920 ($37.96) in a research note on Thursday, December 12th. Finally, Jefferies Financial Group upgraded Diageo to a “buy” rating and set a GBX 2,800 ($36.40) price target for the company in a research note on Friday, December 6th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of GBX 2,876.67 ($37.40).

Diageo Stock Performance

The stock has a market capitalization of £45.29 billion, a price-to-earnings ratio of 11.43, a PEG ratio of 1.75 and a beta of 0.36. The firm has a fifty day moving average of GBX 2,265.42. The company has a quick ratio of 0.62, a current ratio of 1.94 and a debt-to-equity ratio of 234.57.

Diageo Increases Dividend

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

Insider Transactions at Diageo

In related news, insider Nik Jhangiani sold 65,676 shares of the stock in a transaction on Monday, March 3rd. The stock was sold at an average price of GBX 2,165 ($28.15), for a total transaction of £1,421,885.40 ($1,848,524.96). Insiders have bought 19 shares of company stock valued at $43,455 in the last ninety days. Corporate insiders own 0.11% of the company’s stock.

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.