Diageo (NYSE:DEO) Shares Gap Up – Should You Buy?

Diageo plc (NYSE:DEO) gapped up prior to trading on Thursday . The stock had previously closed at $118.00, but opened at $122.93. Diageo shares last traded at $122.88, with a volume of 449,653 shares trading hands.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on DEO shares. Jefferies Financial Group raised shares of Diageo from a “hold” rating to a “buy” rating in a research note on Thursday. Royal Bank of Canada upgraded shares of Diageo from an “underperform” rating to a “sector perform” rating in a research note on Monday, August 12th. Finally, Bank of America upgraded shares of Diageo from a “neutral” rating to a “buy” rating in a research note on Thursday, September 12th. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold”.

Diageo Price Performance

The company has a quick ratio of 0.55, a current ratio of 1.53 and a debt-to-equity ratio of 1.62. The firm’s 50 day moving average is $127.73 and its two-hundred day moving average is $129.76.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Logan Capital Management Inc. lifted its position in shares of Diageo by 2.2% in the third quarter. Logan Capital Management Inc. now owns 22,887 shares of the company’s stock valued at $3,212,000 after buying an additional 487 shares during the last quarter. Inspire Trust Co. N.A. increased its holdings in shares of Diageo by 12.4% in the third quarter. Inspire Trust Co. N.A. now owns 18,189 shares of the company’s stock valued at $2,553,000 after purchasing an additional 2,000 shares during the last quarter. Synovus Financial Corp raised its position in shares of Diageo by 33.0% in the third quarter. Synovus Financial Corp now owns 12,368 shares of the company’s stock valued at $1,736,000 after purchasing an additional 3,068 shares during the period. Optimist Retirement Group LLC boosted its holdings in shares of Diageo by 23.7% during the 3rd quarter. Optimist Retirement Group LLC now owns 16,681 shares of the company’s stock worth $2,341,000 after buying an additional 3,193 shares during the period. Finally, Wilmington Savings Fund Society FSB grew its stake in Diageo by 550.1% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 10,532 shares of the company’s stock valued at $1,478,000 after buying an additional 8,912 shares during the last quarter. 8.97% of the stock is currently owned by institutional investors and hedge funds.

About Diageo

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