General Mills, Inc. (NYSE:GIS) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Analyst sentiment is bearish: General Mills has a consensus “Reduce” rating from 22 firms, with six sells, 12 holds and four buys. The average 12-month price target is $39.37.
• Quarterly results exceeded expectations: General Mills reported $0.95 in earnings per share versus the $0.80 consensus estimate, while revenue reached $4.61 billion, up 1.2% year over year.
• The dividend remains attractive but financially strained: The company pays $0.61 per quarter, or $2.44 annually, representing a 6.4% yield; however, its reported payout ratio is deeply negative due to a net loss.

Shares of General Mills, Inc. (NYSE:GIS - Get Free Report) have been assigned a consensus rating of "Reduce" from the twenty-two research firms that are covering the company, MarketBeat Ratings reports. Six research analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation and four have given a buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $39.3684.

A number of research firms recently commented on GIS. Sanford C. Bernstein cut General Mills from a "market perform" rating to an "underperform" rating and set a $31.00 price objective for the company. in a research report on Wednesday, June 3rd. Zacks Research upgraded General Mills from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 12th. TD Cowen dropped their target price on General Mills from $32.00 to $31.00 and set a "hold" rating for the company in a research note on Thursday, July 2nd. Piper Sandler reduced their target price on General Mills from $45.00 to $41.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 13th. Finally, Morgan Stanley dropped their price target on shares of General Mills from $37.00 to $32.00 and set an "underweight" rating for the company in a research report on Friday, June 5th.

Institutional Trading of General Mills

A number of institutional investors have recently modified their holdings of GIS. Reflection Asset Management acquired a new position in General Mills during the fourth quarter valued at approximately $25,000. Nalls Sherbakoff Group LLC purchased a new position in shares of General Mills in the 4th quarter valued at $26,000. Brown Shipley& Co Ltd acquired a new position in shares of General Mills during the 1st quarter valued at $26,000. Silvant Capital Management LLC acquired a new position in shares of General Mills during the 2nd quarter valued at $26,000. Finally, Bruce G. Allen Investments LLC boosted its position in General Mills by 139.8% during the 4th quarter. Bruce G. Allen Investments LLC now owns 578 shares of the company's stock worth $27,000 after purchasing an additional 337 shares during the period. Hedge funds and other institutional investors own 75.71% of the company's stock.

General Mills Stock Performance

NYSE:GIS opened at $38.36 on Friday. The company has a current ratio of 0.68, a quick ratio of 0.40 and a debt-to-equity ratio of 1.68. The firm has a 50-day moving average price of $37.85 and a two-hundred day moving average price of $37.24. General Mills has a twelve month low of $31.75 and a twelve month high of $51.33. The company has a market capitalization of $20.51 billion, a P/E ratio of -213.10, a price-to-earnings-growth ratio of 2.14 and a beta of -0.01.

General Mills (NYSE:GIS - Get Free Report) last issued its quarterly earnings data on Wednesday, July 1st. The company reported $0.95 earnings per share for the quarter, topping analysts' consensus estimates of $0.80 by $0.15. General Mills had a negative net margin of 0.48% and a positive return on equity of 21.37%. The business had revenue of $4.61 billion during the quarter, compared to analysts' expectations of $4.59 billion. During the same period last year, the company posted $0.53 EPS. The company's revenue was up 1.2% on a year-over-year basis. General Mills has set its FY 2027 guidance at 3.000-3.200 EPS. As a group, research analysts expect that General Mills will post 3.06 earnings per share for the current fiscal year.

General Mills Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Friday, July 10th were paid a dividend of $0.61 per share. The ex-dividend date was Friday, July 10th. This represents a $2.44 annualized dividend and a yield of 6.4%. General Mills's dividend payout ratio is currently -1,355.56%.

About General Mills

General Mills, Inc NYSE: GIS is a multinational consumer foods company that develops, manufactures and markets a broad portfolio of branded food products. Its product categories include ready-to-eat and hot cereals, baking mixes and ingredients, snacks and bars, refrigerated and frozen doughs, yogurt and other dairy products, and a variety of shelf-stable meals and meal components. The company's portfolio features widely recognized consumer brands across grocery store, mass channel and foodservice outlets.

Founded in the early 20th century and incorporated under its current name in 1928, General Mills has grown through both internal brand development and strategic expansion to become a global food company.

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