Diageo (LON:DGE) Stock Price Down 9.5% – Here’s What Happened

Shares of Diageo plc (LON:DGE) traded down 9.5% during trading on Wednesday . The stock traded as low as GBX 1,681.50 and last traded at GBX 1,696.78. 186,360,203 shares traded hands during trading, an increase of 266% from the average session volume of 50,949,934 shares. The stock had previously closed at GBX 1,874.

Diageo News Summary

Here are the key news stories impacting Diageo this week:

• Positive Sentiment: Analysts’ average target remains well above the current share price, suggesting some analysts still see upside after the selloff — average target reported at GBX 2,111.25. Article Title
• Neutral Sentiment: Market was already focused on the Q2 interim results and guidance ahead of publication; several previews and technical-commentary pieces noted volatility into the print. Article Title
• Negative Sentiment: Interim results showed organic net sales decline and weaker-than-expected demand in the U.S. (including tequila) and China; management flagged ongoing pressure on sales and mix, contributing directly to the share decline. Article Title
• Negative Sentiment: Management rebased the dividend to create flexibility (interim dividend set at $0.20 and a new minimum annual floor of $0.50 with a 30–50% payout policy over time). The dividend reset, presented as a balance-sheet and investment-flexibility move given net debt, was a primary trigger for the selloff. Article Title
• Negative Sentiment: Commentary highlights: management points to pressure on U.S. disposable income, competition from lower-priced alternatives, and continued weakness in China-related categories — all factors that weigh on near-term organic growth and margin outlook. Article Title
• Negative Sentiment: Media coverage frames the result as a significant reset by the new CEO — some outlets label the outcome grim and question whether this is a buying opportunity or a value trap, increasing investor uncertainty. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on DGE shares. Deutsche Bank Aktiengesellschaft dropped their price target on Diageo from GBX 1,840 to GBX 1,790 and set a “hold” rating on the stock in a research report on Friday, November 28th. UBS Group reaffirmed a “buy” rating and issued a GBX 2,250 price target on shares of Diageo in a report on Friday, October 31st. Jefferies Financial Group dropped their price objective on shares of Diageo from GBX 2,300 to GBX 2,000 and set a “buy” rating on the stock in a research note on Thursday, January 15th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a GBX 2,000 target price on shares of Diageo in a report on Monday, February 2nd. Finally, JPMorgan Chase & Co. restated a “neutral” rating on shares of Diageo in a research note on Thursday, January 22nd. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of GBX 2,111.25.

Diageo Price Performance

The firm has a market cap of £35.41 billion, a price-to-earnings ratio of 15.07, a P/E/G ratio of 1.75 and a beta of 0.36. The company has a current ratio of 1.94, a quick ratio of 0.62 and a debt-to-equity ratio of 234.57. The business’s 50-day simple moving average is GBX 1,689.07 and its two-hundred day simple moving average is GBX 1,785.21.

Insiders Place Their Bets

In other Diageo news, insider John Alexander Manzoni purchased 365 shares of the firm’s stock in a transaction on Tuesday, February 10th. The stock was purchased at an average cost of GBX 1,799 per share, for a total transaction of £6,566.35. In the last three months, insiders bought 1,199 shares of company stock worth $2,012,531. Company insiders own 0.16% of the company’s stock.

Diageo Company Profile

Diageo is a global leader in premium drinks, across spirits and beer, a business built on the principles and foundations laid by the giants of the industry.

With over 200 brands sold in 180 countries, our portfolio has remarkable breadth. From centuries-old names to exciting new entrants, and global giants to local legends, we’re building the very best brands out there, and with over 30,000 talented people based in over 135 countries, we’re a truly global company. With such diversity, we’re able to truly represent our broad consumer base and think differently about the future.

To maintain our position as leaders in the alcoholic beverage market, we always invest in the future and are mindful of the impact we have.