General Mills, Inc. (NYSE:GIS) Stock Now Rated "Reduce" by Sell-Side Analysts

Key Points

• Analysts rate General Mills “Reduce”: Six of 20 analysts recommend selling, 10 recommend holding, and four recommend buying. The average 12-month price target is $36.59, above the reported $33.80 share price.
• Quarterly results beat estimates but weakened year over year: EPS came in at $0.75 versus the $0.72 consensus, while revenue reached $4.39 billion, but revenue fell 2.8% and earnings declined from $0.86 per share a year earlier.
• The turnaround and dividend remain key investor issues: General Mills maintained its $0.61 quarterly dividend, implying an approximately 7.2% yield, while management pursues product innovation and operational improvements amid persistent inflation, margin pressure, and concerns about sustainable growth.

Shares of General Mills, Inc. (NYSE:GIS - Get Free Report) have earned a consensus recommendation of "Reduce" from the twenty ratings firms that are presently covering the firm, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $36.59.

A number of equities analysts have weighed in on the company. JPMorgan Chase & Co. lifted their price objective on General Mills from $31.00 to $35.00 and gave the company an "underweight" rating in a research note on Thursday, July 2nd. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $34.00 target price (up from $33.00) on shares of General Mills in a research note on Thursday, September 24th. UBS Group reiterated a "sell" rating on shares of General Mills in a research report on Wednesday, September 16th. Jefferies Financial Group set a $35.00 price target on General Mills in a research report on Thursday, September 10th. Finally, Morgan Stanley decreased their price target on General Mills from $37.00 to $32.00 and set an "underweight" rating for the company in a report on Friday, June 5th.

Key Stories Impacting General Mills

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

• Positive Sentiment: Dividend maintained: General Mills declared its regular quarterly dividend of $0.61 per share, payable Nov. 2 to shareholders of record Oct. 13. At recent trading levels, the payout equates to an approximately 7.2% yield. The company and its predecessor have paid uninterrupted dividends for 128 years, reinforcing its appeal to income-focused investors. General Mills Quarterly Dividend Declared
• Positive Sentiment: Early turnaround indicators: First-quarter organic sales were flat, while North American retail trends improved sequentially. Management is emphasizing product innovation rather than relying primarily on additional price increases, which could support longer-term volume recovery. General Mills Is Showing Signs of a Turnaround
• Neutral Sentiment: Transformation remains in progress: The earnings call highlighted innovation and operational changes intended to improve growth, but management has not yet demonstrated a sustained recovery. Wall Street continues to view the turnaround as a lengthy process. General Mills Earnings Call Highlights Transformation Push
• Negative Sentiment: Sales and profitability pressures persist: General Mills exceeded quarterly EPS expectations, reporting $0.75 versus a $0.72 consensus, and revenue modestly topped forecasts at $4.39 billion. However, revenue declined 2.8% year over year, and earnings were below the prior-year period, with inflation continuing to threaten margins. General Mills In Focus After Earnings Beat
• Negative Sentiment: High yield reflects risk as well as income: Commentary warning about traditionally “safe” dividend stocks highlights potential risks from weak growth, valuation pressure, and changing interest-rate conditions. Investors may question dividend sustainability if the operating recovery fails to materialize. Your Safest Dividend Stocks Just Became the Most Dangerous

General Mills Stock Up 0.6%

GIS stock opened at $33.80 on Wednesday. The company has a market capitalization of $18.07 billion, a P/E ratio of -20.36, a price-to-earnings-growth ratio of 1.81 and a beta of -0.01. General Mills has a 12 month low of $31.75 and a 12 month high of $51.26. The firm's fifty day simple moving average is $37.51 and its 200-day simple moving average is $36.15. The company has a debt-to-equity ratio of 1.66, a current ratio of 0.70 and a quick ratio of 0.39.

General Mills (NYSE:GIS - Get Free Report) last issued its earnings results on Wednesday, September 23rd. The company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.03. The firm had revenue of $4.39 billion during the quarter, compared to analysts' expectations of $4.35 billion. General Mills had a negative net margin of 4.89% and a positive return on equity of 21.86%. The firm's revenue was down 2.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.86 earnings per share. As a group, equities research analysts forecast that General Mills will post 3.09 earnings per share for the current year.

Hedge Funds Weigh In On General Mills

Large investors have recently made changes to their positions in the company. BNP Paribas Financial Markets lifted its position in shares of General Mills by 13.1% in the fourth quarter. BNP Paribas Financial Markets now owns 1,246,997 shares of the company's stock valued at $57,985,000 after acquiring an additional 144,631 shares in the last quarter. Bank of Nova Scotia purchased a new stake in shares of General Mills during the second quarter worth approximately $5,195,000. KBC Group NV increased its position in shares of General Mills by 40.5% during the first quarter. KBC Group NV now owns 771,730 shares of the company's stock worth $28,724,000 after purchasing an additional 222,602 shares in the last quarter. Delta Global Management LP acquired a new position in General Mills in the 1st quarter valued at $1,849,000. Finally, Tidal Investments LLC raised its stake in General Mills by 52.6% in the 2nd quarter. Tidal Investments LLC now owns 127,535 shares of the company's stock valued at $4,438,000 after purchasing an additional 43,958 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 products include cereal, snack bars, refrigerated dough, baking mixes, yogurt, soup, meals, frozen foods, and pet food, serving retail, foodservice, and pet channels.

The company's portfolio includes well-known brands such as Cheerios, Betty Crocker, Pillsbury, Nature Valley, Yoplait, Häagen-Dazs, Old El Paso, Progresso, Totino's, Annie's, and Blue Buffalo. General Mills sells its products primarily in the United States and also serves consumers in international markets across multiple regions.

General Mills traces its history to the Minneapolis Milling Company, established in 1856, and adopted the General Mills name following a 1928 combination of several milling businesses.

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