The Insider Activity Of Diageo plc (DEO) Should Not Be Ignored

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As of Wednesday close, Diageo plc’s (NYSE:DEO) stock was up $2.83, moving up 1.57 percent to $183.01. The average number of shares traded per day over the past five days has been 318,020 shares. 5 times new highs have been achieved over the past 5 days, with a $7.49 gain in that time frame. In the last twenty days, the average volume was 341,215, while in the previous 50 days, it was 355,114.

Since last month, DEO stock rose 8.31%. Shares of the company fell to $162.02 on 11/03/22, the lowest level in the past month. A 52-week high of $223.14 was reached on 01/04/22 after having rallying from a 52-week low of $160.09. Since the beginning of this year, DEO’s stock price has dropped by -16.87% or -$37.13, and marked a new high 2 times. However, the stock has declined by -17.98% since its 52-week high.


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Valuation Metrics

Right now, Diageo plc (DEO) has a P/E ratio of about 27.64. The stock’s beta is 0.65. Besides these, the trailing price-to-sales (P/S) ratio of 5.56, the price-to-book (PB) ratio of 11.40, and the price-to-cash flow ratio of 76.76 may also be considered.

The latest dividend of $2.2775 per share was paid out, which is 44.93% more than last year’s $1.5714. On Thursday August 4 2022, a $0.7062 dividend increase was announced.

Financial Health

In the recent quarter, Diageo plc’s quick ratio stood at 0.70, while its current ratio was 1.50, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the recent quarter was 1.86, and the total debt-to-equity ratio was 2.05. On the profitability front, the trailing twelve-month gross margin is 61.30% percent. In the recent year, EBITDA margin amounted to 34.29%, whereas operating margins totaled 28.20%. Based on annual data, DEO earned $12.62 billion in gross profit and brought in $20.57 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 13.60%. Return on equity (ROE) for the past 12 months was 44.60%.

DEO’s revenue fell -19.6% during the quarter, while net income inched up to $22.45 billion. The liabilities of Diageo plc were 35.94 billion at the end of its most recent quarter, and its total debt was $16.78 billion.

Technical Picture

This quick technical analysis looks at Diageo plc’s (DEO) price momentum. With a historical volatility rate of 14.13%, the RSI 9-day stood at 75.68% on 23 November.

With respect to its five-day moving average, the current Diageo plc price is up by +4.27% percent or $7.49. At present, DEO shares trade +9.07% above its 20-day simple moving average and +6.57% percent above its 100-day simple moving average. However, the stock is currently trading approximately +3.94% above its SMA50 and -10.91% below its SMA200.

Stochastic coefficient K was 98.09% and Stochastic coefficient D was 97.45%, while ATR was 3.34. Given the Stochastic reading of 96.90% for the 14-day period, the RSI (14) reading has been calculated as 68.43%. As of today, the MACD Oscillator reading stands at 3.74, while the 14-day reading stands at 5.94.

Analyst Ratings

Diageo plc downgraded its rating on Diageo plc (NYSE: DEO) to a Sell in a note to investors on June 29, 2022. The analysts firm previously had a Hold rating on the stock.Diageo plc (DEO) has been rated Overweight by analysts. According to 1 brokerage firm, DEO is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Diageo plc stock as buy, with 11 recommending it as overweight.

With a median target price of $199.30, the current consensus forecast for the stock is $150.67 – $245.74. Based on these forecasts, analysts predict Diageo plc (DEO) will achieve an average price target of $199.44.

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