Zacks Investment Research Downgrades General Mills, Inc. (GIS) to Sell

General Mills, Inc. (NYSE:GIS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.

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 2.4% and 0.3%, respectively, over the last 30 days, reflecting analyst concerns surrounding the stock.”

Other equities analysts have also recently issued reports about the company. Jefferies Group LLC initiated coverage on General Mills in a report on Friday. They set a “hold” rating and a $56.00 price objective on the stock. Royal Bank Of Canada set a $62.00 price objective on General Mills and gave the company a “hold” rating in a report on Wednesday, August 2nd. BidaskClub raised General Mills from a “hold” rating to a “buy” rating in a report on Tuesday, August 22nd. Wells Fargo & Company decreased their price objective on General Mills from $56.00 to $53.00 and set a “market perform” rating on the stock in a report on Friday, September 22nd. Finally, Stifel Nicolaus decreased their price objective on General Mills from $60.00 to $55.00 and set a “hold” rating on the stock in a report on Thursday, June 29th. Four research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and three have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $56.60.

General Mills (GIS) traded down 0.702% during mid-day trading on Monday, hitting $51.645. The stock had a trading volume of 1,753,871 shares. General Mills has a 52 week low of $50.13 and a 52 week high of $64.06. The company’s 50 day moving average price is $52.87 and its 200 day moving average price is $55.45. The firm has a market cap of $29.35 billion, a PE ratio of 18.504 and a beta of 0.61.

General Mills (NYSE:GIS) last released its quarterly earnings results on Wednesday, September 20th. The company reported $0.71 earnings per share for the quarter, missing the consensus estimate of $0.76 by ($0.05). General Mills had a net margin of 10.68% and a return on equity of 39.82%. The business had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.79 billion. During the same period in the previous year, the business earned $0.78 EPS. The business’s revenue was down 3.6% on a year-over-year basis. Analysts anticipate that General Mills will post $3.08 earnings per share for the current year.

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Hedge funds have recently modified their holdings of the company. Lenox Wealth Advisors Inc. grew its position in shares of General Mills by 0.8% in the 2nd quarter. Lenox Wealth Advisors Inc. now owns 1,833 shares of the company’s stock worth $102,000 after buying an additional 15 shares during the last quarter. Hanson McClain Inc. grew its position in shares of General Mills by 1.5% in the 1st quarter. Hanson McClain Inc. now owns 2,346 shares of the company’s stock worth $138,000 after buying an additional 35 shares during the last quarter. Winslow Evans & Crocker Inc. grew its position in shares of General Mills by 2.9% in the 2nd quarter. Winslow Evans & Crocker Inc. now owns 2,461 shares of the company’s stock worth $136,000 after buying an additional 69 shares during the last quarter. Assetmark Inc. grew its position in shares of General Mills by 11.2% in the 1st quarter. Assetmark Inc. now owns 2,506 shares of the company’s stock worth $148,000 after buying an additional 253 shares during the last quarter. Finally, IHT Wealth Management LLC grew its position in shares of General Mills by 33.4% in the 1st quarter. IHT Wealth Management LLC now owns 2,506 shares of the company’s stock worth $146,000 after buying an additional 627 shares during the last quarter. Hedge funds and other 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.

Analyst Recommendations for General Mills (NYSE:GIS)

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