General Mills Inc. (GIS) Shares: Cheap or Risky?

General Mills Inc. (NYSE:GIS) saw an upside of 1.37% to close Monday at $61.45 after adding $0.83 on the day. The 5-day average trading volume is 4,336,380 shares of the company’s common stock. It has gained $61.58 in the past week. An average of 4,939,315 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,727,328.

GIS’s 1-month performance is 6.09% or $3.68 on its low of $56.67 reached on 09/07/21. The company’s shares have touched a 52-week low of $53.96 and high of $64.65, with the stock’s rally to the 52-week high happening on 05/13/21. YTD, GIS has achieved 4.51% or $2.65. However, the current price is down -4.95%% from the 52-week high price.

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Insider Transactions

On Oct 01, 4 days have gone by since the last insider trading activity for General Mills Inc. (GIS). Allendorf Richard C (General Counsel & Secretary) most recently sold 9,731 shares at $60.54 per share on Oct 01. This transaction cost the insider $589,115. Group President, OGrady Shawn P, sold 28,614 shares at a price of $60.48 on Sep 24. Then, on Jul 14, Group President Walker Sean N sold 26,337 shares at a price of $58.78 per share. This transaction amounted to $1,548,081.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 23.83 and a low of 10.70. GIS stock has a beta of 0.51. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.01 while the price-to-book (PB) in the most recent quarter is 3.87, with the price to cash flow ratio at 36.89.

General Mills Inc. pays an annual dividend of $2.04 per share. Its dividend yield is 3.32% and the payout ratio is 53.70%. GIS paid $0.51 a share compared with prior rate of $0.51, down 0.0% from last year’s. The company has boosted its dividend for the last 1 consecutive years with the latest dividend increase of $0.02 reported on Wednesday September 23 2020. Measured over the last 3 years, the Dividend has been growing by 2.06% yearly.

It is projected that General Mills Inc.’s next ex-dividend date will be on 7-Oct-2021. GIS is expected to distribute $0.51 as its next dividend.

General Mills Inc.’s quick ratio for the period ended August 30 was 0.50, with the current ratio over the same period at 0.80 meaning that GIS stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending August 30 was 1.07, while the total debt to equity was 1.34. In terms of profitability, the gross margin trailing 12 months is 35.30%The trailing 12-month EBITDA margin is 21.13% while for the period ending August 30; General Mills Inc.’s operating margin was 17.80%. The firm’s gross profit as reported stood at $6.45 billion against revenue of $18.13 billion.

Earnings Surprise

For the quarterly period ending August 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected GIS to announce $0.89 per share in earnings in its latest quarter, but it posted $0.99, representing a 11.20% surprise. EBITDA for the quarter stood at more than $990.1 million. GIS stock balance sheet for the quarter ending August 30 shows that total liabilities totaled 22.35 billion, with total debt at $12.95 billion. Shareholders hold equity totaling $605.69 million

Technical Picture

Let’s look briefly at General Mills Inc. (GIS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 04 October was 65.30% to suggest the stock is trending Neutral, with historical volatility in this time period at 24.08%.

The stock’s 5-day moving average is $60.40, reflecting a +3.02% or $1.80 change from its current price. GIS is currently trading +6.37% above its 20-day SMA, -2.40% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +3.45% and +4.29% respectively.

Stochastic %K and %D was 80.78% and 75.39% and the average true range (ATR) pointed at 1.20. The RSI (14) points at 61.84%, while the 14-day stochastic is at 96.84% with the period’s ATR at 1.14. The stock’s 9-day MACD Oscillator is pointing at 0.37 and 0.95 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for General Mills Inc. (NYSE: GIS), Citigroup upgraded it to a Buy rating. They previously had a Neutral rating on the stock. Analysts offering their rating for GIS stock have a consensus rating for the stock as Hold. Currently, 2 brokerage advisors rate GIS as a “sell,”, while 12 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 2 rates the stock as overweight while 4 have offered a “buy” rating.

What is GIS’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $50.00 and a high of $73.00, with their median price target at $64.50. Looking at these predictions, the average price target given by analysts is for General Mills Inc. (GIS) stock is $63.72.


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