Zacks Investment Research upgraded shares of General Mills (NYSE:GIS) from a hold rating to a buy rating in a research report sent to investors on Thursday. They currently have $58.00 price target on the stock.
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. That said, slowing organic volumes are overshadowing minor improvements in profit margins. Sales and profits at the company’s North America Retail segment, contributing 66% to its sales, have been soft. The North American food industry has seen sluggish growth and slowdown in consumption over the last few quarters owing to changes in consumer preference. General Mills' shares have underperformed the industry in the last three months. That said, earnings estimates have been trending upward for the current year and the next over the last 30 days, reflecting analysts' optimism.”
GIS has been the topic of several other reports. Susquehanna Bancshares set a $57.00 price objective on shares of General Mills and gave the company a hold rating in a report on Wednesday, December 13th. Credit Suisse Group reaffirmed a neutral rating and issued a $58.00 price objective (down from $62.00) on shares of General Mills in a report on Wednesday, February 21st. Edward Jones reaffirmed a hold rating on shares of General Mills in a report on Wednesday, December 20th. BMO Capital Markets reaffirmed a neutral rating on shares of General Mills in a report on Friday, December 22nd. Finally, Wells Fargo raised shares of General Mills from a market perform rating to an outperform rating and set a $63.00 price objective on the stock in a report on Monday, December 18th. Two investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and six have given a buy rating to the stock. General Mills presently has an average rating of Hold and a consensus price target of $57.38.
Shares of General Mills (GIS) opened at $50.49 on Thursday. The firm has a market cap of $28,731.03, a P/E ratio of 18.49, a price-to-earnings-growth ratio of 2.09 and a beta of 0.72. General Mills has a 12-month low of $49.65 and a 12-month high of $61.15. The company has a debt-to-equity ratio of 1.79, a quick ratio of 0.53 and a current ratio of 0.81.
General Mills (NYSE:GIS) last released its earnings results on Wednesday, December 20th. The company reported $0.82 earnings per share for the quarter, hitting the consensus estimate of $0.82. The company had revenue of $4.20 billion for the quarter, compared to the consensus estimate of $4.08 billion. General Mills had a net margin of 10.29% and a return on equity of 38.89%. General Mills’s revenue was up 2.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.85 EPS. equities analysts expect that General Mills will post 3.17 earnings per share for the current year.
General Mills declared that its board has initiated a stock repurchase plan on Friday, February 23rd that permits the company to repurchase shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.
In related news, insider Bethany C. Quam sold 8,712 shares of the business’s stock in a transaction on Tuesday, January 9th. The shares were sold at an average price of $59.40, for a total value of $517,492.80. Following the completion of the transaction, the insider now directly owns 36,089 shares in the company, valued at approximately $2,143,686.60. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 1.40% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of GIS. Raab & Moskowitz Asset Management LLC acquired a new position in General Mills during the second quarter worth $271,000. WINTON GROUP Ltd raised its position in General Mills by 58.3% during the second quarter. WINTON GROUP Ltd now owns 26,817 shares of the company’s stock worth $1,486,000 after acquiring an additional 9,880 shares during the period. Bangor Savings Bank raised its position in General Mills by 3.4% during the second quarter. Bangor Savings Bank now owns 7,814 shares of the company’s stock worth $433,000 after acquiring an additional 260 shares during the period. Dynamic Technology Lab Private Ltd raised its position in General Mills by 103.9% during the second quarter. Dynamic Technology Lab Private Ltd now owns 32,248 shares of the company’s stock worth $1,787,000 after acquiring an additional 16,432 shares during the period. Finally, Fort Pitt Capital Group LLC raised its position in General Mills by 56.2% during the second quarter. Fort Pitt Capital Group LLC now owns 5,560 shares of the company’s stock worth $308,000 after acquiring an additional 2,000 shares during the period. Hedge funds and other institutional investors own 74.34% of the company’s stock.
About General Mills
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.
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