General Mills (NYSE:GIS) Hits New 52-Week Low - Here's Why

Key Points

• Shares hit a new 52-week low at $35.51 after General Mills reported an earnings miss (Q EPS $0.64 vs. $0.73 expected; revenue $4.44B vs. $4.53B) and several analysts trimmed price targets, leaving an average MarketBeat rating of "Reduce" and an average target of $43.44.
• Generous dividend amid pressure: the company announced a $0.61 quarterly dividend (annualized $2.44) for a 6.9% yield with an ex-dividend date of April 10 and a payout ratio around 59.7%.
• Valuation and balance-sheet snapshot: market cap ~$19.0B, P/E 8.71, debt-to-equity 1.17, and the stock is trading well below its 50-day ($42.25) and 200-day ($45.39) moving averages.

Shares of General Mills, Inc. (NYSE:GIS - Get Free Report) hit a new 52-week low during trading on Friday . The stock traded as low as $35.51 and last traded at $35.4590, with a volume of 5016833 shares traded. The stock had previously closed at $36.75.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Wells Fargo & Company cut General Mills from an "equal weight" rating to an "underweight" rating and reduced their price objective for the stock from $35.00 to $33.00 in a research note on Wednesday. Mizuho cut their target price on shares of General Mills from $47.00 to $39.00 and set a "neutral" rating on the stock in a report on Thursday, March 19th. Royal Bank Of Canada cut their target price on shares of General Mills from $60.00 to $55.00 and set an "outperform" rating on the stock in a report on Thursday, March 19th. TD Cowen cut their target price on shares of General Mills from $45.00 to $37.00 and set a "hold" rating on the stock in a report on Thursday, March 19th. Finally, Stifel Nicolaus cut their target price on General Mills from $50.00 to $44.00 and set a "buy" rating on the stock in a research note on Thursday, March 19th. Four equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $43.44.

General Mills Stock Performance

The stock has a fifty day moving average price of $42.25 and a two-hundred day moving average price of $45.39. The company has a market cap of $19.01 billion, a P/E ratio of 8.71 and a beta of 0.01. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.56 and a quick ratio of 0.36.

General Mills (NYSE:GIS - Get Free Report) last released its quarterly earnings results on Wednesday, March 18th. The company reported $0.64 earnings per share for the quarter, missing analysts' consensus estimates of $0.73 by ($0.09). The business had revenue of $4.44 billion for the quarter, compared to the consensus estimate of $4.53 billion. General Mills had a net margin of 12.05% and a return on equity of 19.19%. The business's quarterly revenue was down 8.4% on a year-over-year basis. During the same period last year, the firm posted $1.12 EPS. On average, equities analysts forecast that General Mills, Inc. will post 4.36 earnings per share for the current fiscal year.

General Mills Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 10th 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 6.9%. The ex-dividend date is Friday, April 10th. General Mills's payout ratio is currently 59.66%.

Institutional Investors Weigh In On General Mills

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vermillion & White Wealth Management Group LLC acquired a new stake in General Mills during the 3rd quarter valued at $25,000. Reflection Asset Management acquired a new stake in General Mills during the 4th quarter valued at $25,000. Nalls Sherbakoff Group LLC acquired a new position in shares of General Mills in the 4th quarter valued at about $26,000. Bruce G. Allen Investments LLC increased its holdings in shares of General Mills by 139.8% in the 4th quarter. Bruce G. Allen Investments LLC now owns 578 shares of the company's stock valued at $27,000 after purchasing an additional 337 shares during the period. Finally, Close Asset Management Ltd acquired a new position in shares of General Mills in the 3rd quarter valued at about $28,000. Institutional investors own 75.71% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.