Diageo (LON:DGE) Reaches New 12-Month Low – Should You Sell?

Diageo plc (LON:DGE) shares hit a new 52-week low during trading on Tuesday . The company traded as low as GBX 2,108 ($26.53) and last traded at GBX 2,118.50 ($26.66), with a volume of 16637951 shares trading hands. The stock had previously closed at GBX 2,151.50 ($27.07).

Wall Street Analyst Weigh In

DGE has been the topic of several recent analyst reports. UBS Group upgraded shares of Diageo to a “buy” rating and boosted their price objective for the stock from GBX 2,300 ($28.94) to GBX 2,920 ($36.74) in a research note on Thursday, December 12th. JPMorgan Chase & Co. reissued a “neutral” rating and set a GBX 2,500 ($31.46) price target on shares of Diageo in a research report on Tuesday, January 7th. Finally, Jefferies Financial Group raised Diageo to a “buy” rating and set a GBX 2,800 ($35.23) price objective for the company in a research report on Friday, December 6th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, Diageo presently has a consensus rating of “Hold” and an average price target of GBX 2,876.67 ($36.20).

Diageo Stock Performance

The stock’s fifty day moving average price is GBX 2,414.28. The company has a debt-to-equity ratio of 234.57, a current ratio of 1.94 and a quick ratio of 0.62. The company has a market capitalization of £47.13 billion, a PE ratio of 11.89, a P/E/G ratio of 1.75 and a beta of 0.36.

Insider Activity

In other news, insider Javier Ferrán bought 339 shares of the company’s stock in a transaction dated Tuesday, December 10th. The stock was bought at an average price of GBX 2,446 ($30.78) per share, with a total value of £8,291.94 ($10,434.05). Over the last quarter, insiders have bought 351 shares of company stock valued at $857,361. 0.11% of the stock is owned by insiders.

About Diageo

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.