UBS Group Issues Pessimistic Forecast for General Mills (NYSE:GIS) Stock Price

Key Points

• UBS Group cut its price target on General Mills from $35 to $30 and kept a sell rating, implying about 9.1% downside from the prior close.
• General Mills shares fell 2.4% to about $33.00, near its 1-year low of $32.64, as multiple analysts lowered expectations and the consensus rating remains Reduce.
• The company’s latest quarter disappointed, with EPS of $0.64 versus the $0.73 estimate and revenue of $4.44 billion below forecasts; insiders also recently sold shares, signaling cautious sentiment.

General Mills (NYSE:GIS - Get Free Report) had its target price decreased by research analysts at UBS Group from $35.00 to $30.00 in a research report issued on Tuesday,Benzinga reports. The firm presently has a "sell" rating on the stock. UBS Group's price objective points to a potential downside of 9.09% from the stock's previous close.

A number of other equities analysts have also weighed in on the company. Sanford C. Bernstein dropped their price objective on General Mills from $53.00 to $48.00 and set a "market perform" rating on the stock in a research note on Wednesday, February 18th. Mizuho cut their price objective 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. Piper Sandler cut their price objective on shares of General Mills from $45.00 to $41.00 and set an "overweight" rating on the stock in a report on Wednesday, May 13th. JPMorgan Chase & Co. cut their price objective on shares of General Mills from $42.00 to $36.00 and set an "underweight" rating on the stock in a report on Thursday, March 19th. Finally, Stifel Nicolaus cut their price objective on shares of General Mills from $44.00 to $40.00 and set a "buy" rating on the stock in a report on Tuesday, April 21st. Four analysts have rated the stock with a Buy rating, eleven have given a Hold rating and six have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $41.28.

General Mills Trading Down 2.4%

Shares of GIS stock traded down $0.81 during mid-day trading on Tuesday, reaching $33.00. 8,912,127 shares of the stock traded hands, compared to its average volume of 9,612,036. The stock's fifty day simple moving average is $35.14 and its two-hundred day simple moving average is $41.85. General Mills has a 1-year low of $32.64 and a 1-year high of $55.19. The company has a market cap of $17.61 billion, a price-to-earnings ratio of 8.17 and a beta of -0.03. The company has a quick ratio of 0.36, a current ratio of 0.56 and a debt-to-equity ratio of 1.17.

General Mills (NYSE:GIS - Get Free Report) last announced its quarterly earnings results on Wednesday, March 18th. The company reported $0.64 EPS for the quarter, missing analysts' consensus estimates of $0.73 by ($0.09). General Mills had a net margin of 12.05% and a return on equity of 19.19%. The firm had revenue of $4.44 billion for the quarter, compared to analyst estimates of $4.53 billion. During the same period in the previous year, the business posted $1.12 earnings per share. The business's revenue for the quarter was down 8.4% compared to the same quarter last year. On average, research analysts anticipate that General Mills will post 3.43 EPS for the current fiscal year.

Insider Activity

In other news, insider Ricardo Fernandez sold 7,995 shares of General Mills stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $34.50, for a total transaction of $275,827.50. Following the completion of the sale, the insider owned 62,283 shares in the company, valued at approximately $2,148,763.50. This trade represents a 11.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Jacqueline Williams-Roll sold 10,000 shares of General Mills stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $34.27, for a total value of $342,700.00. Following the sale, the insider owned 86,002 shares of the company's stock, valued at approximately $2,947,288.54. This trade represents a 10.42% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.30% of the company's stock.

Institutional Trading of General Mills

A number of hedge funds have recently bought and sold shares of GIS. Vermillion & White Wealth Management Group LLC bought a new position in shares of General Mills during the third quarter valued at approximately $25,000. Reflection Asset Management bought a new position in shares of General Mills in the 4th quarter worth approximately $25,000. Nalls Sherbakoff Group LLC bought a new position in shares of General Mills in the 4th quarter worth approximately $26,000. Brown Shipley& Co Ltd bought a new position in shares of General Mills in the 1st quarter worth approximately $26,000. Finally, Bruce G. Allen Investments LLC raised its position 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 worth $27,000 after acquiring an additional 337 shares in the last quarter. Institutional investors own 75.71% of the company's stock.

General Mills Company Profile

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.

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