General Mills (NYSE:GIS) Stock Falls 2.6% - Here's Why

Key Points

• General Mills shares fell 2.6% to about $31.84, with trading volume below the average session level.
• Analyst sentiment remains cautious: the stock carries an average “Reduce” rating, with 10 Holds and 6 Sells versus 4 Buys, and an average price target of $36.59.
• Although quarterly earnings and revenue exceeded estimates, revenue declined 2.8% year over year. General Mills also announced a quarterly dividend of $0.61 per share, representing a 7.7% annualized yield.

General Mills, Inc. (NYSE:GIS - Get Free Report)'s share price fell 2.6% on Tuesday. The company traded as low as $31.79 and last traded at $31.8370. Approximately 7,971,560 shares were traded during trading, a decline of 17% from the average session volume of 9,579,700 shares. The stock had previously closed at $32.70.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. UBS Group restated a "sell" rating on shares of General Mills in a research note on Wednesday, September 16th. BNP Paribas Exane boosted their target price on shares of General Mills from $37.00 to $38.00 and gave the stock a "neutral" rating in a research report on Thursday, July 2nd. Piper Sandler reissued an "overweight" rating on shares of General Mills in a research report on Thursday, September 24th. Zacks Research raised shares of General Mills from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 12th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of General Mills in a research report on Tuesday, September 29th. Four research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and six have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $36.59.

General Mills Trading Down 2.6%

The company has a debt-to-equity ratio of 1.66, a quick ratio of 0.39 and a current ratio of 0.70. The firm has a 50 day simple moving average of $36.70 and a two-hundred day simple moving average of $35.78. The firm has a market capitalization of $17.02 billion, a P/E ratio of -19.18, a PEG ratio of 1.75 and a beta of 0.03.

General Mills (NYSE:GIS - Get Free Report) last announced its earnings results on Wednesday, September 23rd. The company reported $0.75 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $4.35 billion. During the same quarter in the prior year, the company posted $0.86 earnings per share. The firm's revenue for the quarter was down 2.8% on a year-over-year basis. Equities research analysts forecast that General Mills, Inc. will post 3.08 earnings per share for the current year.

General Mills Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Tuesday, October 13th will be given a dividend of $0.61 per share. The ex-dividend date of this dividend is Tuesday, October 13th. This represents a $2.44 annualized dividend and a dividend yield of 7.7%. General Mills's dividend payout ratio (DPR) is currently -146.99%.

Hedge Funds Weigh In On General Mills

Institutional investors have recently modified their holdings of the business. MCF Advisors LLC raised its stake in General Mills by 7.8% in the second quarter. MCF Advisors LLC now owns 3,812 shares of the company's stock valued at $133,000 after purchasing an additional 277 shares in the last quarter. Triumph Capital Management grew its stake in General Mills by 45.0% in the 2nd quarter. Triumph Capital Management now owns 915 shares of the company's stock worth $32,000 after buying an additional 284 shares in the last quarter. HB Wealth Management LLC grew its stake in General Mills by 0.6% in the 1st quarter. HB Wealth Management LLC now owns 48,145 shares of the company's stock worth $1,792,000 after buying an additional 309 shares in the last quarter. Clearstead Trust LLC grew its stake in General Mills by 73.8% in the 1st quarter. Clearstead Trust LLC now owns 810 shares of the company's stock worth $30,000 after buying an additional 344 shares in the last quarter. Finally, Apella Capital LLC increased its holdings in shares of General Mills by 3.2% in the 2nd quarter. Apella Capital LLC now owns 11,148 shares of the company's stock worth $414,000 after buying an additional 347 shares during the last quarter. 75.71% of the stock is owned by institutional investors.

About General Mills

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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