General Mills, Inc. (NYSE:GIS) Given Consensus Recommendation of “Reduce” by Brokerages

General Mills, Inc. (NYSE:GIS) has received an average recommendation of “Reduce” from the twenty ratings firms that are covering the firm, Marketbeat.com reports. Six equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have assigned a buy rating to the company. The average 12-month target price among brokers that have covered the stock in the last year is $44.6111.

A number of equities analysts recently weighed in on GIS shares. JPMorgan Chase & Co. lowered their price objective on shares of General Mills from $42.00 to $36.00 and set an “underweight” rating on the stock in a research report on Thursday. TD Cowen reduced their target price on shares of General Mills from $45.00 to $37.00 and set a “hold” rating for the company in a research note on Thursday. Royal Bank Of Canada lowered 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. Zacks Research lowered shares of General Mills from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 19th. Finally, Barclays cut their price target on shares of General Mills from $46.00 to $43.00 and set an “equal weight” rating for the company in a report on Monday, March 16th.

General Mills Stock Down 1.2%

General Mills stock opened at $37.04 on Friday. The stock has a 50 day moving average of $44.38 and a two-hundred day moving average of $46.65. General Mills has a twelve month low of $37.01 and a twelve month high of $62.61. The stock has a market capitalization of $19.76 billion, a price-to-earnings ratio of 9.06 and a beta of -0.05. The company has a current ratio of 0.56, a quick ratio of 0.39 and a debt-to-equity ratio of 1.17.

General Mills (NYSE:GIS) last released its earnings results on Wednesday, March 18th. The company reported $0.64 earnings per share (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 company had revenue of $4.44 billion during the quarter, compared to analyst estimates of $4.53 billion. During the same period in the previous year, the firm posted $1.12 EPS. The company’s revenue for the quarter was down 8.4% on a year-over-year basis. As a group, research analysts expect that General Mills will post 4.36 earnings per share for the current year.

General Mills Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Shareholders of record on Friday, April 10th will be given a dividend of $0.61 per share. The ex-dividend date is Friday, April 10th. This represents a $2.44 annualized dividend and a yield of 6.6%. General Mills’s payout ratio is presently 59.66%.

More General Mills News

Here are the key news stories impacting General Mills this week:

• Positive Sentiment: Piper Sandler reaffirmed its buy/overweight stance on GIS (despite trimming its target earlier), signaling continued broker support for the turnaround thesis. Piper Sandler Reaffirms Their Buy Rating on General Mills (GIS)
• Positive Sentiment: RBC Capital reaffirmed its buy/outperform view on GIS, providing another vote of confidence from a large broker. RBC Capital Keeps Their Buy Rating on General Mills (GIS)
• Positive Sentiment: Diamond Hill Capital’s Mid-Cap strategy disclosed a new position in General Mills in Q4, indicating some institutional accumulation at these levels. Diamond Hill Mid Cap Strategy Initiated a Position in General Mills (GIS) in Q4
• Neutral Sentiment: Jefferies reaffirmed a hold rating, reflecting a wait-and-see view: management’s recovery plan is being acknowledged but not yet rewarded by all analysts. Jefferies Reaffirms Their Hold Rating on General Mills (GIS)
• Neutral Sentiment: Management highlighted product innovation (more protein/fiber SKUs like Cheerios Protein) and portfolio reshaping (Brazil unit sale) as recovery levers; these are strategic positives but will take time to materially reverse top-line/margin trends. General Mills Bets on Protein and Fiber to Win Back Consumers
• Negative Sentiment: Q3 results missed on EPS and showed an 8.4% YoY revenue decline; analysts flagged a tough consumer environment and lowered near-term forecasts. General Mills’ FQ3 miss highlights tough consumer environment — analysts
• Negative Sentiment: Several brokers slashed price targets and/or lowered ratings after the print: UBS cut its target to $35 and kept a Sell; JPMorgan, UBS, Goldman, TD Cowen and others trimmed targets or moved to underweight/neutral — putting fresh downside risk and pressuring sentiment. General Mills price target lowered to $35 from $40 at UBS
• Negative Sentiment: Investor commentary (including Jim Cramer) and post-earnings notes highlight that management’s messaging and near-term guidance weren’t convincing, amplifying the sell-side cuts and heavy trading. Jim Cramer on General Mills: “Management Tried to Turn Minuses Into Pluses, But the Crowd Wasn’t Buying It”

Institutional Trading of General Mills

Hedge funds have recently modified their holdings of the business. Vermillion & White Wealth Management Group LLC purchased a new stake in shares of General Mills in the third quarter valued at about $25,000. Reflection Asset Management purchased a new position in shares of General Mills during the 4th quarter worth approximately $25,000. Nalls Sherbakoff Group LLC purchased a new position in shares of General Mills during the 4th quarter worth approximately $26,000. Bruce G. Allen Investments LLC raised its position in shares of General Mills by 139.8% during the 4th quarter. Bruce G. Allen Investments LLC now owns 578 shares of the company’s stock worth $27,000 after purchasing an additional 337 shares during the last quarter. Finally, Close Asset Management Ltd acquired a new position in shares of General Mills during the 3rd quarter worth approximately $28,000. 75.71% of the stock is owned by institutional investors and hedge funds.

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.