General Mills (NYSE:GIS) Reaches New 52-Week Low - Should You Sell?

Key Points

• General Mills (NYSE:GIS) reached a new 52-week low of $47.46, prompting discussions about whether investors should consider selling.
• Analysts have downgraded their price targets for General Mills, with a consensus target price of $55.82 and an average rating of "Hold."
• The company announced a quarterly dividend of $0.61 per share, amounting to a 5.1% yield, set to be paid on November 3rd.

General Mills, Inc. (NYSE:GIS - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The company traded as low as $47.46 and last traded at $47.52, with a volume of 1753227 shares changing hands. The stock had previously closed at $47.93.

Analyst Ratings Changes

Several research analysts have issued reports on GIS shares. HSBC lowered their price target on shares of General Mills from $59.00 to $57.00 and set a "hold" rating for the company in a report on Thursday, September 18th. Mizuho lowered their price target on shares of General Mills from $57.00 to $52.00 and set a "neutral" rating for the company in a report on Friday, September 19th. Jefferies Financial Group lowered their price target on shares of General Mills from $51.00 to $50.00 and set a "hold" rating for the company in a report on Monday, September 8th. Weiss Ratings restated a "hold (c-)" rating on shares of General Mills in a report on Wednesday, October 8th. Finally, Deutsche Bank Aktiengesellschaft lowered their price target on shares of General Mills from $52.00 to $50.00 and set a "hold" rating for the company in a report on Thursday, September 18th. Four investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, General Mills currently has an average rating of "Hold" and a consensus target price of $55.82.

General Mills Stock Performance

The company's fifty day moving average price is $49.58 and its 200 day moving average price is $52.06. The company has a market cap of $25.30 billion, a PE ratio of 8.96, a P/E/G ratio of 1.24 and a beta of -0.03. The company has a debt-to-equity ratio of 1.28, a current ratio of 0.66 and a quick ratio of 0.40.

General Mills (NYSE:GIS - Get Free Report) last announced its earnings results on Wednesday, September 17th. The company reported $0.86 EPS for the quarter, beating the consensus estimate of $0.82 by $0.04. The company had revenue of $4.52 billion during the quarter, compared to the consensus estimate of $4.52 billion. General Mills had a net margin of 15.24% and a return on equity of 23.46%. The firm's revenue for the quarter was down 6.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.07 earnings per share. On average, equities research analysts predict that General Mills, Inc. will post 4.36 earnings per share for the current year.

General Mills Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be issued a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date is Friday, October 10th. General Mills's dividend payout ratio (DPR) is 46.12%.

Insider Transactions at General Mills

In related news, insider Jacqueline Williams-Roll sold 4,000 shares of the firm's stock in a transaction dated Friday, September 19th. The shares were sold at an average price of $50.04, for a total transaction of $200,160.00. Following the completion of the sale, the insider owned 66,593 shares in the company, valued at approximately $3,332,313.72. This trade represents a 5.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.30% of the company's stock.

Institutional Trading of General Mills

A number of large investors have recently added to or reduced their stakes in GIS. Charles Schwab Investment Management Inc. increased its holdings in General Mills by 434.8% during the first quarter. Charles Schwab Investment Management Inc. now owns 19,041,194 shares of the company's stock worth $1,138,473,000 after buying an additional 15,480,835 shares during the last quarter. Norges Bank bought a new position in General Mills during the second quarter worth about $417,508,000. Diamond Hill Capital Management Inc. bought a new position in General Mills during the first quarter worth about $279,570,000. Pacer Advisors Inc. boosted its position in General Mills by 4,775.2% during the first quarter. Pacer Advisors Inc. now owns 3,443,981 shares of the company's stock worth $205,916,000 after purchasing an additional 3,373,338 shares during the period. Finally, Worldquant Millennium Advisors LLC bought a new position in General Mills during the second quarter worth about $84,862,000. Hedge funds and other institutional investors own 75.71% of the company's stock.

About General Mills

General Mills, Inc manufactures and markets branded consumer foods worldwide. The company operates through four segments: North America Retail; International; Pet; and North America Foodservice. It offers grain, ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and savory snacks, ice cream and frozen desserts, unbaked and fully baked frozen dough products, frozen hot snacks, ethnic meals, side dish mixes, frozen breakfast and entrees, nutrition bars, and frozen and shelf-stable vegetables.

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