Zacks Investment Research cut shares of General Mills, Inc. (NYSE:GIS) from a hold rating to a sell rating in a research report sent to investors on Tuesday, October 17th.
According to Zacks, “General Mills' consumer-focused innovation, marketing initiatives and robust restructuring savings are making up for the sluggish revenue growth. The company is currently pursuing several initiatives focused on improving operational efficiency to generate cost savings and support its key growth strategies. By fiscal 2018, the company expects to achieve cost savings through increased efficiency, reduced complexity through SKU optimization, further supply chain optimization and continued expansion of zero-based budgeting across the business, which will result in accelerated margin expansion. However, General Mills' shares have underperformed the industry so far this year. Slowing organic volumes are overshadowing minor improvements in profit margins. Earnings estimates for the current quarter and the year have been revised downward by 3.5% and 0.6%, respectively, over the last 30 days, reflecting analyst concerns surrounding the stock.”
Several other equities research analysts also recently weighed in on the stock. Royal Bank Of Canada set a $62.00 price target on shares of General Mills and gave the company a hold rating in a research note on Wednesday, August 2nd. Consumer Edge raised shares of General Mills from a sell rating to a neutral rating in a research report on Friday, September 8th. Morgan Stanley restated an equal weight rating and set a $55.00 price target (down from $58.00) on shares of General Mills in a report on Sunday, June 25th. Goldman Sachs Group, Inc. (The) restated a sell rating and set a $52.00 price target (down from $59.00) on shares of General Mills in a report on Friday, June 30th. Finally, Vetr upgraded shares of General Mills from a hold rating to a buy rating and set a $57.82 price target on the stock in a report on Tuesday, June 27th. Three analysts have rated the stock with a sell rating, fifteen have issued a hold rating and three have given a buy rating to the company’s stock. General Mills currently has a consensus rating of Hold and a consensus price target of $56.60.
Shares of General Mills (NYSE GIS) traded down $1.12 during trading hours on Tuesday, hitting $50.22. 2,390,671 shares of the stock were exchanged, compared to its average volume of 3,480,602. The firm has a market capitalization of $29,178.50, a price-to-earnings ratio of 17.06, a PEG ratio of 1.91 and a beta of 0.63. The company has a current ratio of 0.74, a quick ratio of 0.47 and a debt-to-equity ratio of 1.83. General Mills has a 52 week low of $50.12 and a 52 week high of $64.06.
General Mills (NYSE:GIS) last announced its earnings results on Wednesday, September 20th. The company reported $0.71 earnings per share for the quarter, missing analysts’ consensus estimates of $0.76 by ($0.05). General Mills had a return on equity of 39.82% and a net margin of 10.68%. The firm had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.79 billion. During the same period in the prior year, the business earned $0.78 EPS. General Mills’s quarterly revenue was down 3.6% on a year-over-year basis. research analysts anticipate that General Mills will post 3.1 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, November 1st. Stockholders of record on Tuesday, October 10th were given a dividend of $0.49 per share. This represents a $1.96 annualized dividend and a dividend yield of 3.90%. The ex-dividend date of this dividend was Friday, October 6th. General Mills’s payout ratio is currently 70.25%.
Several institutional investors have recently added to or reduced their stakes in the company. Teacher Retirement System of Texas raised its position in shares of General Mills by 1.2% during the third quarter. Teacher Retirement System of Texas now owns 177,914 shares of the company’s stock valued at $9,209,000 after buying an additional 2,054 shares during the last quarter. Rhumbline Advisers increased its position in General Mills by 0.3% in the third quarter. Rhumbline Advisers now owns 1,068,372 shares of the company’s stock worth $55,299,000 after purchasing an additional 3,250 shares during the last quarter. Advisor Group Inc. increased its position in General Mills by 7.4% in the third quarter. Advisor Group Inc. now owns 79,871 shares of the company’s stock worth $4,136,000 after purchasing an additional 5,472 shares during the last quarter. Todd Asset Management LLC increased its position in General Mills by 14.7% in the third quarter. Todd Asset Management LLC now owns 23,763 shares of the company’s stock worth $1,230,000 after purchasing an additional 3,046 shares during the last quarter. Finally, Court Place Advisors LLC increased its position in General Mills by 62.6% in the third quarter. Court Place Advisors LLC now owns 9,183 shares of the company’s stock worth $475,000 after purchasing an additional 3,534 shares during the last quarter. Hedge funds and other institutional investors own 69.58% of the company’s stock.
General Mills Company Profile
General Mills, Inc is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is a supplier of branded and unbranded food products to the North American foodservice and commercial baking industries. The Company has three segments: U.S. Retail, International, and Convenience Stores and Foodservice.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for General Mills Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for General Mills Inc. and related companies with our FREE daily email newsletter.