Zacks Investment Research lowered shares of Diageo (NYSE:DEO) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.
According to Zacks, “Diageo's significant international presence exposes it to major currency risks. In fact, adverse currency fluctuations marred the company’s sales and operating profit in fiscal 2018 and are likely to significantly affect results in fiscal 2019. Additionally, cautious consumer spending and government regulations might weigh on the company's sales and hurt overall profitability. Higher taxes and macroeconomic headwinds also remain hurdles. However, the company has outperformed the industry in the past three months driven by its acquisition strategy as well as strong earnings and sales performance. The company’s solid fundamentals, innovations and focus on expansion remain encouraging. Further, concentration on achieving growth via buyouts has been yielding results. The company has also been striving toward expanding its presence in emerging markets while focusing on high-margin products.”
Shares of Diageo stock opened at $141.29 on Tuesday. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.37 and a quick ratio of 0.58. The stock has a market capitalization of $89.13 billion, a price-to-earnings ratio of 22.25, a PEG ratio of 2.64 and a beta of 0.63. Diageo has a 52-week low of $131.22 and a 52-week high of $151.30.
A number of institutional investors have recently modified their holdings of the business. Great Lakes Advisors LLC purchased a new position in Diageo in the third quarter worth about $248,000. Clearbridge Investments LLC raised its holdings in Diageo by 31.5% in the third quarter. Clearbridge Investments LLC now owns 427,577 shares of the company’s stock worth $60,575,000 after buying an additional 102,479 shares during the last quarter. Carnegie Capital Asset Management LLC raised its holdings in Diageo by 100.0% in the third quarter. Carnegie Capital Asset Management LLC now owns 4,622 shares of the company’s stock worth $668,000 after buying an additional 2,311 shares during the last quarter. Belpointe Asset Management LLC purchased a new position in Diageo in the third quarter worth about $114,000. Finally, Dodge & Cox raised its holdings in Diageo by 3.5% in the third quarter. Dodge & Cox now owns 25,263 shares of the company’s stock worth $3,579,000 after buying an additional 850 shares during the last quarter. 11.15% of the stock is owned by institutional investors and hedge funds.
Diageo Company Profile
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Bundaberg, McDowell's No.
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