General Mills Inc. (NYSE:GIS) finished Thursday with a subtraction of -$0.13 to close at $68.01, a downside of -0.19 percent. An average of 4,339,000 shares of common stock have been traded in the last five days. There was a fall of -$2.28 in the past week, and it reached a new high 23 times over the past 12 months. The last 20 days have seen an average of 3,586,950 shares traded, while the 50-day average volume stands at 3,817,324.
GIS stock has decreased by -10.21% in the last month. The company shares reached their 1-month lowest point of $67.78 on 08/24/23. With the stock rallying to its 52-week high on 05/15/23, shares of the company touched a low of $67.88 and a high of $90.89 in 52 weeks. It has reached a new high 18 times so far this year and lost -18.89% or -$15.84 in price. In spite of this, the price is down -25.17% from the 52-week high.
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Insider Transactions
GIS stock investors should be aware that General Mills Inc. (GIS) stock had its last reported insider trading activity 100 days ago on May 17. In this transaction, the insider spent $776,847. Chief Accounting Officer, Pallot Mark A, disposed of 4,081 shares at a price of $90.32 on May 16. The insider now owns more than $368,591 worth of shares. Prior to that, Chief Innovation Officer Benson Jodi J went on to Sale 3,009 shares at $90.59 each on May 12. An amount of $272,600 was transacted.
Valuation Metrics
General Mills Inc. (GIS) has a trailing price-to-earnings (P/E) ratio of 15.77. The stock’s beta is 0.24. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.97, the price-to-book (PB) ratio at 3.84, and the price-to-cash flow ratio at 18.94.
The company has a payout ratio of 49.60%. The company’s most recent quarterly dividend payment was $0.59 a share, representing a up of 9.26% from $0.54 last year. Its latest increase dividend $0.05 reported on Wednesday June 28 2023.
Financial Health
The quick ratio of General Mills Inc. for the three months ended May 30 was 0.40, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.95 and a total debt to equity ratio of 1.12 for the quarter ending May 30. General Mills Inc.’s EBITDA margin for the year ending May 30 is 19.47%, while its operating margin for the same period stands at 17.50%. Its gross profit as reported stood at $6.55 billion compared to revenue of $20.09 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, General Mills Inc.’s return on assets was 8.30%.
Earnings Surprise
For the three-month period that ended May 30, General Mills Inc. had $9.97 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $614.9 million in the quarter, while revenues of $553.1 million were shrunk -33.81%. The analyst consensus anticipated General Mills Inc.’s latest quarter earnings to come in at $1.07 per share, but it turned out to be $1.12, a 4.70% surprise. For the quarter, EBITDA amounted to $953.8 million. Shareholders own equity worth $585.18 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at General Mills Inc. (GIS) price momentum. RSI 9-day as of the close on 24 August was 15.89%, suggesting the stock is oversold, with historical volatility in this time frame at 7.61%.
As of today, GIS’s price is $68.71 -3.24% or -$2.28 from its 5-day moving average. GIS is currently trading -9.32% lower than its 20-day SMA and -20.42% lower than its 100-day SMA. However, the stock’s current price level is -15.76% below the SMA50 and -13.98% below the SMA200.
The stochastic %K and %D were 3.57% and 4.15%, respectively, and the average true range (ATR) was 1.06. With the 14-day stochastic at 3.79% and the average true range at 1.08, the RSI (14) stands at 21.27%. The stock has reached -1.71 on the 9-day MACD Oscillator while the 14-day reading was at -2.60.
Analyst Ratings
BofA Securities reiterated its a Neutral rating on General Mills Inc. (NYSE: GIS), but raised their price target to $82, indicating a potential price increase of 17.06% for the stock. The consensus rating for General Mills Inc. (GIS) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell GIS, while 11 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.
What is GIS’s price target for the next 12 months?
Analysts predict a range of price targets between $69.00 and $91.00, with a median target of $80.00. Taking a look at these predictions, the average price target given by analysts for General Mills Inc. (GIS) stock is $79.24.
