General Mills (NYSE:GIS) Share Price Crosses Above 50 Day Moving Average on Analyst Downgrade

Key Points

• General Mills shares rose above their 50-day moving average of $34.26, trading at $34.32 after Weiss Ratings modestly upgraded its rating from “sell (d)” to “sell (d+).” Analysts’ consensus rating remains “Reduce,” with an average price target of $36.24.
• The company beat quarterly earnings and revenue estimates, reporting EPS of $0.75 and revenue of $4.39 billion, although revenue fell 2.8% year over year and EPS was down from $0.86.
• General Mills’ roughly 7.1% dividend yield is under scrutiny: Piper Sandler warned the payout could be cut by as much as 35% as the company focuses on reducing debt and investing in growth.

General Mills, Inc. (NYSE:GIS - Get Free Report)'s share price passed above its 50-day moving average during trading on Friday after Weiss Ratings upgraded the stock from a sell (d) rating to a sell (d+) rating. The stock has a 50-day moving average of $34.26 and traded as high as $34.45. General Mills shares last traded at $34.32, with a volume of 6,681,696 shares changing hands.

GIS has been the subject of a number of other reports. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $45.00 price objective on shares of General Mills in a research note on Monday, September 21st. Bank of America reissued a "neutral" rating on shares of General Mills in a research report on Thursday, September 24th. BNP Paribas Exane boosted their price target on shares of General Mills from $37.00 to $38.00 and gave the company a "neutral" rating in a report on Thursday, July 2nd. JPMorgan Chase & Co. upped their price target on shares of General Mills from $31.00 to $35.00 and gave the stock an "underweight" rating in a research report on Thursday, July 2nd. Finally, TD Cowen upped their price target on shares of General Mills from $32.00 to $33.00 and gave the stock a "hold" rating in a research report on Thursday, September 24th. Three research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and six have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $36.24.

General Mills News Roundup

Here's some of the latest news about GIS:

• Positive Sentiment: A dividend-stock comparison highlights GIS’s reported yield of roughly 7%, above Kimberly-Clark’s, which may appeal to income-focused investors—though the payout is now in question. Article: Better Dividend Stock for Retirees
• Negative Sentiment: Piper Sandler downgraded General Mills from Overweight to Neutral and cut its price target to $35 from $41. The firm warned the dividend could be reduced by as much as 35% as the company prioritizes debt reduction and growth investment. Article: General Mills' Hefty Dividend Could Be on the Chopping Block
• Negative Sentiment: Coverage also linked the pressure on shares to the downgrade and target cut ahead of a leadership change and restructuring, adding uncertainty around the company’s turnaround. Article: What's Going On With General Mills Stock Thursday?

Hedge Funds Weigh In On General Mills

Several institutional investors and hedge funds have recently added to or reduced their stakes in GIS. Empowered Funds LLC grew its position in shares of General Mills by 16.5% in the 3rd quarter. Empowered Funds LLC now owns 292,361 shares of the company's stock worth $9,402,000 after buying an additional 41,323 shares during the last quarter. United Southern Bank Trust Department acquired a new stake in General Mills in the 3rd quarter worth approximately $188,000. Roberts Glore & Co. Inc. IL lifted its stake in shares of General Mills by 7.5% during the third quarter. Roberts Glore & Co. Inc. IL now owns 12,594 shares of the company's stock worth $405,000 after buying an additional 880 shares during the period. Steward Partners Investment Advisory LLC grew its stake in General Mills by 44.7% during the 3rd quarter. Steward Partners Investment Advisory LLC now owns 47,251 shares of the company's stock valued at $1,520,000 after purchasing an additional 14,588 shares during the last quarter. Finally, State Board of Administration of Florida Retirement System boosted its position in General Mills by 5.8% in the third quarter. State Board of Administration of Florida Retirement System now owns 532,893 shares of the company's stock valued at $17,138,000 after buying an additional 29,368 shares during the last quarter. Hedge funds and other institutional investors own 75.71% of the company's stock.

General Mills Price Performance

The company has a market capitalization of $18.35 billion and a price-to-earnings ratio of -20.67. The firm has a 50-day simple moving average of $34.26 and a two-hundred day simple moving average of $37.12. The company has a current ratio of 0.70, a quick ratio of 0.39 and a debt-to-equity ratio of 1.66.

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

General Mills Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, November 2nd. Shareholders of record on Tuesday, October 13th were issued a dividend of $0.61 per share. The ex-dividend date was Tuesday, October 13th. This represents a $2.44 dividend on an annualized basis and a yield of 7.1%. General Mills's dividend payout ratio is -146.99%.

About General Mills

General Mills, Inc. is a food company that develops, manufactures and markets branded consumer foods. Its products include breakfast cereals, snack bars, baking mixes and refrigerated dough, along with meals and pet food. Its brands include Cheerios, Nature Valley, Betty Crocker, Pillsbury and Blue Buffalo. The company traces its history to the Minneapolis Milling Company, established in 1866. The General Mills name was adopted in 1928 by the Washburn Crosby Company, a predecessor of today's business.

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