According to Zacks, “Diageo outpaced the industry in the past year driven by its expansion and innovation strategy. This aided sales and earnings growth in first-half fiscal 2019. Moreover, the company’s focus on achieving growth via acquisitions is yielding results. Its focus on expanding presence in emerging markets and premium brands is also encouraging. However, Diageo’s sales is being negatively impacted by adverse currency rates, which is likely to persist in fiscal 2019. Further, input cost inflation and higher transportation costs are likely to weigh on margins. During first-half fiscal 2019, the company witnessed inflationary pressures from commodity costs. Inflationary cost pressures from commodity and transportation will slightly mar gross margin in second-half fiscal 2019. The company also expects muted operating margin growth in the second half, due to the phasing of productivity costs and marketing expenses.”
Other analysts have also recently issued research reports about the stock. Liberum Capital raised shares of Diageo from a “sell” rating to a “hold” rating in a research note on Thursday, January 31st. Barclays started coverage on shares of Diageo in a research note on Monday, April 1st. They issued an “overweight” rating for the company. Finally, Investec cut shares of Diageo from a “hold” rating to a “sell” rating in a research note on Monday, March 25th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and four have issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $164.75.
Several large investors have recently bought and sold shares of DEO. Virtu Financial LLC bought a new position in shares of Diageo during the fourth quarter worth about $432,000. MACRO Consulting Group acquired a new stake in Diageo during the fourth quarter worth approximately $1,536,000. Harbour Capital Advisors LLC grew its stake in Diageo by 6.5% during the fourth quarter. Harbour Capital Advisors LLC now owns 2,945 shares of the company’s stock worth $418,000 after purchasing an additional 180 shares during the period. Winslow Evans & Crocker Inc. grew its stake in Diageo by 20.1% during the fourth quarter. Winslow Evans & Crocker Inc. now owns 12,414 shares of the company’s stock worth $1,762,000 after purchasing an additional 2,080 shares during the period. Finally, Portland Global Advisors LLC grew its stake in Diageo by 1.2% during the fourth quarter. Portland Global Advisors LLC now owns 21,125 shares of the company’s stock worth $2,996,000 after purchasing an additional 254 shares during the period. 10.55% of the stock is owned by hedge funds and other institutional investors.
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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