Is General Mills Inc. (GIS) Good For Your Portfolio?


General Mills Inc. (NYSE:GIS) saw an upside of 0.62% to close Tuesday at $85.94 after adding $0.53 on the day. The 5-day average trading volume is 3,755,760 shares of the company’s common stock. It has gained $86.08 in the past week and touched a new high 3 times within the past 5 days. An average of 4,484,710 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,898,016.

GIS’s 1-month performance is 3.58% or $2.97 on its low of $82.43 reached on 11/29/22. The company’s shares have touched a 52-week low of $61.67 and high of $88.34, with the stock’s rally to the 52-week high happening on 12/14/22. YTD, GIS has achieved 27.55% or $18.56 and has reached a new high 39 times. However, the current price is down -2.72% from the 52-week high price.

Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.


Insider Transactions

GIS stock investors last saw insider trading activity on Nov 22.OGrady Shawn P (Group President) most recently sold 20,019 shares at $82.50 per share on Nov 22. This transaction cost the insider $1,651,568. Director, Cordani David, sold 26,100 shares at a price of $76.18 on Nov 11. Then, on Nov 09, Group President OGrady Shawn P sold 32,114 shares at a price of $80.50 per share. This transaction amounted to $2,585,177.

Valuation Metrics

GIS stock has a beta of 0.32. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.61 while the price-to-book (PB) in the most recent quarter is 5.06, with the price to cash flow ratio at 42.87.

General Mills Inc.’s quick ratio for the period ended August 30 was 0.30, with the current ratio over the same period at 0.60. As well, the company’s long term debt to equity for the quarter ending August 30 was 0.85, while the total debt to equity was 1.16.. In terms of profitability, the gross margin trailing 12 months is 32.70%. The firm’s gross profit as reported stood at $6.4 billion against revenue of $18.99 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. Net income grew 1.44% to $605.9 million, while revenue of $820.0 million was -35.34% off the previous quarter. Analysts expected GIS to announce $1 per share in earnings in its latest quarter, but it posted $1.11, representing a 11.00% surprise. EBITDA for the quarter stood at more than $939.4 million. GIS stock balance sheet for the quarter ending August 30 shows that total liabilities totaled 20.95 billion, with total debt at $11.56 billion. Shareholders hold equity totaling $589.61 million.

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 27 December was 53.78% to suggest the stock is trending Neutral, with historical volatility in this time period at 28.84%.

The stock’s 5-day moving average is $85.00, reflecting a -1.35% or -$1.18 change from its current price. GIS is currently trading +3.63% above its 20-day SMA, +13.80% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +10.59% and SMA200 by+38.01%.

Stochastic %K and %D was 53.32% and 50.33% and the average true range (ATR) pointed at 1.60. The RSI (14) points at 55.99%, while the 14-day stochastic is at 59.31% with the period’s ATR at 1.62. The stock’s 9-day MACD Oscillator is pointing at -0.42 and -0.76 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for General Mills Inc. (NYSE: GIS), Deutsche Bank downgraded it to a Hold rating. They previously had a Buy 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 14 advise that investors “Hold.” 2 analysts have rated the stock as underweight. 0 rates the stock as overweight while 2 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 $65.00 and a high of $95.00, with their median price target at $82.00. Looking at these predictions, the average price target given by analysts is for General Mills Inc. (GIS) stock is $81.83.


Please enter your comment!
Please enter your name here