General Mills, Inc. (GIS) - What Are Analysts Saying About This Stock?

Key Points

• Analyst sentiment is cautious: Twenty analysts give General Mills a consensus “Reduce” rating, with six sells, ten holds and four buys. The average 12-month price target is $36.59, versus a share price of $34.39.
• Quarterly results modestly beat expectations: General Mills reported adjusted EPS of $0.75 and revenue of $4.39 billion, exceeding consensus estimates, though revenue declined 2.8% year over year and EPS fell from $0.86 a year earlier.
• Income appeal remains significant amid fundamental concerns: The company declared a quarterly dividend of $0.61 per share, representing a 7.1% annualized yield. However, analysts remain concerned about competition, declining sales and the need to restore growth, despite new high-protein snack launches.

General Mills, Inc. (NYSE:GIS - Get Free Report) has received a consensus recommendation of "Reduce" from the twenty ratings firms that are currently covering the firm, MarketBeat.com reports. Six research analysts have rated the stock with a sell recommendation, ten have given a hold recommendation and four have given a buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $36.59.

Several equities research analysts recently commented on the stock. Wells Fargo & Company boosted their price objective on shares of General Mills from $30.00 to $33.00 and gave the stock an "underweight" rating in a research report on Thursday, July 2nd. BNP Paribas Exane increased their price objective on shares of General Mills from $37.00 to $38.00 and gave the company a "neutral" rating in a research note on Thursday, July 2nd. Evercore set a $38.00 target price on shares of General Mills in a report on Monday, September 14th. Jefferies Financial Group set a $35.00 target price on shares of General Mills in a report on Thursday, September 10th. Finally, UBS Group restated a "sell" rating on shares of General Mills in a research report on Wednesday, September 16th.

General Mills Stock Performance

Shares of GIS stock opened at $34.39 on Friday. The stock has a fifty day moving average price of $35.93 and a 200 day moving average price of $35.55. The stock has a market cap of $18.39 billion, a PE ratio of -20.71, a P/E/G ratio of 1.86 and a beta of 0.03. General Mills has a 1 year low of $31.17 and a 1 year high of $49.59. The company has a debt-to-equity ratio of 1.66, a quick ratio of 0.39 and a current ratio of 0.70.

General Mills (NYSE:GIS - Get Free Report) last posted its earnings results on Wednesday, September 23rd. The company reported $0.75 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.03. General Mills had a positive return on equity of 21.86% and a negative net margin of 4.89%. The company had revenue of $4.39 billion for the quarter, compared to the consensus estimate of $4.35 billion. During the same period in the previous year, the business earned $0.86 earnings per share. General Mills's quarterly revenue was down 2.8% compared to the same quarter last year. Sell-side analysts forecast that General Mills will post 3.08 earnings per share for the current fiscal year.

General Mills Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Tuesday, October 13th will be paid a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a dividend yield of 7.1%. The ex-dividend date of this dividend is Tuesday, October 13th. General Mills's dividend payout ratio (DPR) is -146.99%.

More General Mills News

Here are the key news stories impacting General Mills this week:

• Positive Sentiment: Expansion into high-protein snacking: General Mills has launched EPIC Sticks, a four-flavor meat-snack line made with grass-fed beef or free-range chicken. Its gluten-free, dairy-free and Paleo-friendly positioning gives the company exposure to growing demand for convenient, protein-rich snacks and could broaden EPIC’s shelf presence. How EPIC Sticks Launch At General Mills Has Changed Its Investment Story
• Positive Sentiment: Recent earnings modestly exceeded expectations: General Mills previously reported adjusted earnings of $0.75 per share versus the $0.72 consensus estimate, while revenue of $4.39 billion also topped forecasts. The stock was reported to be about 1% higher since that earnings release, although analysts are watching whether estimates support continued momentum. General Mills Up 1% Since Last Earnings Report: Can It Continue?
• Neutral Sentiment: Valuation debate: Commentary suggests the stock’s roughly 38% three-year decline may have reset expectations, but investors still need evidence that General Mills can stabilize its sales base and restore growth. General Mills Stock Seems About Right On Its 38% Slide
• Negative Sentiment: Fundamental and competitive concerns remain: General Mills faces established food giants and agile snack competitors, including Chomps and PepsiCo’s Good Warrior. Revenue in the latest reported quarter declined 2.8% year over year, and commentary questioning the company’s fundamentals could limit investor enthusiasm despite new product launches. 3 Mid-Cap Stocks With Questionable Fundamentals

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Brown Shipley& Co Ltd purchased a new stake in shares of General Mills in the first quarter valued at $26,000. Main Street Group LTD purchased a new stake in General Mills during the 1st quarter worth about $27,000. Silvant Capital Management LLC purchased a new stake in General Mills during the 2nd quarter worth about $26,000. Elevation Wealth Partners LLC acquired a new position in General Mills in the 2nd quarter valued at about $27,000. Finally, CoreCap Advisors LLC raised its stake in General Mills by 92.9% in the 2nd quarter. CoreCap Advisors LLC now owns 787 shares of the company's stock valued at $27,000 after purchasing an additional 379 shares during the last quarter. 75.71% of the stock is currently owned by institutional investors and hedge funds.

General Mills Company Profile

General Mills, Inc is a global food company that manufactures and markets branded consumer foods. Its portfolio includes cereal, snack foods, refrigerated and baking products, yogurt, soup, meals, and pet food. The company's brands include Cheerios, Cinnamon Toast Crunch, Nature Valley, Betty Crocker, Pillsbury, Yoplait, Old El Paso, Progresso, Annie's, Totino's, Häagen-Dazs, and Blue Buffalo.

General Mills sells products through grocery stores, mass merchandisers, convenience stores, e-commerce channels, restaurants, and other foodservice outlets.

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