General Mills (NYSE:GIS) Stock Falls 2.6% – Here’s Why

Shares of General Mills, Inc. (NYSE:GIS) fell 2.6% during trading on Tuesday. The stock traded as low as $31.79 and last traded at $31.8370. 7,971,560 shares changed hands during mid-day trading, a decline of 17% from the average daily volume of 9,579,700 shares. The stock had previously closed at $32.70.

Key Stories Impacting General Mills

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

• Positive Sentiment: Record-high dividend yield supports value appeal. General Mills’ yield has reached roughly 7.6%–7.7%, its highest level ever, making GIS attractive to income-oriented investors and prompting comparisons with other high-yield stocks such as Verizon, Pfizer, Altria and British American Tobacco. The company is maintaining its current dividend while navigating weaker earnings. General Mills hits its highest dividend yield ever at 7.6%
• Positive Sentiment: Debt reduction could improve financial flexibility. General Mills completed cash tender offers covering seven senior-note series, with up to $750 million in tender consideration, accepting a significant amount of longer-dated debt. The deleveraging strategy may help strengthen the balance sheet and reduce future financing pressure, although it also uses cash that could otherwise support operations or shareholder returns. How Investors Are Reacting To General Mills Debt Tender Offers And Deleveraging Pivot
• Neutral Sentiment: Shareholders approved governance changes. Investors backed limits on blank-check preferred stock issuance, officer exculpation provisions and a federal forum requirement for certain Securities Act claims. These measures provide governance and legal-structure clarity but are unlikely to materially change near-term earnings or cash flow. General Mills Shareholders Approved Limits On Blank Check Preferred Stock
• Negative Sentiment: Recent results beat estimates but showed deteriorating fundamentals. Fiscal 2027 first-quarter earnings and sales exceeded consensus, helped by better execution, but profit declined year over year. Analysts continue to expect lower earnings and profitability, while weak consumer demand remains a concern. The stock’s roughly 13% monthly selloff has compressed its valuation, creating potential value but not eliminating the near-term operating risks. General Mills Q1 Beat Masks Earnings Pressure While Guidance Holds

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on GIS shares. Piper Sandler reissued an “overweight” rating on shares of General Mills in a research report on Thursday, September 24th. UBS Group reissued a “sell” rating on shares of General Mills in a research report on Wednesday, September 16th. Royal Bank Of Canada restated an “outperform” rating and issued a $45.00 target price on shares of General Mills in a research note on Monday, September 21st. Barclays upped their price target on General Mills from $36.00 to $37.00 and gave the company an “equal weight” rating in a research report on Friday, September 25th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $34.00 price target (up from $33.00) on shares of General Mills in a research note on Thursday, September 24th. Four equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and six have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus price target of $36.59.

General Mills Trading Up 2.4%

The stock has a market cap of $17.57 billion, a PE ratio of -19.80, a P/E/G ratio of 1.72 and a beta of 0.03. The firm has a 50-day simple moving average of $36.54 and a 200-day simple moving average of $35.72. The company has a quick ratio of 0.39, a current ratio of 0.70 and a debt-to-equity ratio of 1.66.

General Mills (NYSE:GIS) last announced its quarterly earnings results on Wednesday, September 23rd. The company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.03. General Mills had a positive return on equity of 21.86% and a negative net margin of 4.89%. 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 previous year, the business earned $0.86 earnings per share. The firm’s quarterly revenue was down 2.8% compared to the same quarter last year. Equities analysts forecast that General Mills, Inc. will post 3.08 earnings per share for the current year.

General Mills Announces Dividend

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 paid a $0.61 dividend. The ex-dividend date is Tuesday, October 13th. This represents a $2.44 annualized dividend and a yield of 7.4%. General Mills’s dividend payout ratio is currently -146.99%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Assenagon Asset Management S.A. raised its position in shares of General Mills by 591.1% in the 3rd quarter. Assenagon Asset Management S.A. now owns 197,769 shares of the company’s stock worth $6,360,000 after purchasing an additional 169,154 shares during the last quarter. Brindle & Bay Financial Advisors LLC grew its position in General Mills by 16.2% during the 3rd quarter. Brindle & Bay Financial Advisors LLC now owns 32,963 shares of the company’s stock valued at $1,060,000 after purchasing an additional 4,607 shares during the last quarter. Retirement Planning Co of New England Inc. grew its position in General Mills by 6.2% during the 3rd quarter. Retirement Planning Co of New England Inc. now owns 8,487 shares of the company’s stock valued at $273,000 after purchasing an additional 499 shares during the last quarter. Mystic Asset Management Inc. grew its position in General Mills by 4.8% during the 3rd quarter. Mystic Asset Management Inc. now owns 11,123 shares of the company’s stock valued at $358,000 after purchasing an additional 505 shares during the last quarter. Finally, Summit Financial Wealth Advisors LLC bought a new stake in General Mills during the 3rd quarter valued at about $258,000. 75.71% of the stock is owned by institutional investors.

General Mills Company Profile

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.