General Mills, Inc. (GIS) Lowered to “Sell” at Zacks Investment Research
General Mills, Inc. (NYSE:GIS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
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.”
Other equities research analysts have also recently issued reports about the stock. Vetr upgraded shares of General Mills from a “hold” rating to a “buy” rating and set a $57.82 price objective for the company in a research report on Tuesday, June 27th. BidaskClub raised shares of General Mills from a “hold” rating to a “buy” rating in a research note on Tuesday, August 22nd. Citigroup Inc. reaffirmed a “buy” rating and set a $67.00 target price on shares of General Mills in a research note on Thursday, September 21st. Morgan Stanley reaffirmed an “equal weight” rating and set a $55.00 target price (down previously from $58.00) on shares of General Mills in a research note on Sunday, June 25th. Finally, Susquehanna Bancshares Inc set a $59.00 target price on shares of General Mills and gave the stock a “hold” rating in a research note on Sunday, June 25th. Four research analysts have rated the stock with a sell rating, thirteen have given a hold rating and three have assigned a buy rating to the stock. General Mills currently has an average rating of “Hold” and a consensus price target of $56.64.
General Mills (GIS) traded down 0.23% during trading on Tuesday, hitting $51.69. 2,029,668 shares of the company were exchanged. General Mills has a 12 month low of $50.13 and a 12 month high of $64.06. The stock’s 50-day moving average is $53.11 and its 200-day moving average is $55.65. The company has a market capitalization of $29.38 billion, a price-to-earnings ratio of 18.52 and a beta of 0.62.
General Mills (NYSE:GIS) last released its quarterly earnings data on Wednesday, September 20th. The company reported $0.71 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate 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 analyst estimates of $3.79 billion. During the same quarter in the previous year, the business posted $0.78 earnings per share. General Mills’s revenue for the quarter was down 3.6% on a year-over-year basis. Equities research analysts anticipate that General Mills will post $3.08 earnings per share for the current year.
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A number of institutional investors have recently modified their holdings of GIS. Lenox Wealth Advisors Inc. lifted its stake in General Mills by 0.8% in the second quarter. Lenox Wealth Advisors Inc. now owns 1,833 shares of the company’s stock worth $102,000 after acquiring an additional 15 shares during the last quarter. Winslow Evans & Crocker Inc. lifted its stake in General Mills by 2.9% in the second quarter. Winslow Evans & Crocker Inc. now owns 2,461 shares of the company’s stock worth $136,000 after acquiring an additional 69 shares during the last quarter. Hanson McClain Inc. lifted its stake in General Mills by 1.5% in the first quarter. Hanson McClain Inc. now owns 2,346 shares of the company’s stock worth $138,000 after acquiring an additional 35 shares during the last quarter. IHT Wealth Management LLC lifted its stake in General Mills by 33.4% in the first quarter. IHT Wealth Management LLC now owns 2,506 shares of the company’s stock worth $146,000 after acquiring an additional 627 shares during the last quarter. Finally, Assetmark Inc. lifted its stake in General Mills by 11.2% in the first quarter. Assetmark Inc. now owns 2,506 shares of the company’s stock worth $148,000 after acquiring an additional 253 shares during the last quarter. Institutional investors own 70.45% 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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