General Mills, Inc. (GIS) Cut to Hold at Zacks Investment Research
General Mills, Inc. (NYSE:GIS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report 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. It is on track to achieve its cost savings target for fiscal 2018 as it forges ahead with its margin expansion efforts. However, General Mills' shares have underperformed the industry so far this year. Slowing organic volumes are overshadowing minor improvements in profit margins.”
Several other analysts have also weighed in on the company. Royal Bank Of Canada set a $62.00 price objective on General Mills and gave the company a “hold” rating in a research note on Wednesday, August 2nd. Morgan Stanley reaffirmed an “equal weight” rating and issued a $55.00 price objective (down from $58.00) on shares of General Mills in a research note on Sunday, June 25th. Goldman Sachs Group, Inc. (The) reaffirmed a “sell” rating and issued a $52.00 price objective (down from $59.00) on shares of General Mills in a research note on Friday, June 30th. Vetr raised General Mills from a “hold” rating to a “buy” rating and set a $57.82 price target on the stock in a research note on Tuesday, June 27th. Finally, Piper Jaffray Companies started coverage on General Mills in a research note on Wednesday, May 24th. They set an “underweight” rating and a $57.00 price target on the stock. Four research analysts have rated the stock with a sell rating, fourteen have given a hold rating and three have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $59.11.
Shares of General Mills (NYSE:GIS) traded down 1.763% during midday trading on Tuesday, hitting $55.435. 2,818,932 shares of the stock traded hands. The company has a market capitalization of $31.99 billion, a P/E ratio of 20.013 and a beta of 0.62. General Mills has a 1-year low of $52.76 and a 1-year high of $65.57. The stock has a 50 day moving average of $55.76 and a 200 day moving average of $56.79.
General Mills (NYSE:GIS) last released its earnings results on Wednesday, June 28th. The company reported $0.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.71 by $0.02. The company had revenue of $3.81 billion for the quarter, compared to analyst estimates of $3.75 billion. General Mills had a return on equity of 38.97% and a net margin of 10.61%. General Mills’s quarterly revenue was down 3.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.66 EPS. Equities research analysts predict that General Mills will post $3.11 earnings per share for the current fiscal year.
Several large investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of General Mills by 1.4% during the second quarter. Vanguard Group Inc. now owns 39,968,232 shares of the company’s stock valued at $2,214,240,000 after buying an additional 533,919 shares during the last quarter. American Century Companies Inc. boosted its position in shares of General Mills by 7.3% during the second quarter. American Century Companies Inc. now owns 9,745,627 shares of the company’s stock valued at $539,908,000 after buying an additional 659,156 shares during the last quarter. Morgan Stanley boosted its position in shares of General Mills by 29.4% during the first quarter. Morgan Stanley now owns 7,055,040 shares of the company’s stock valued at $416,318,000 after buying an additional 1,603,577 shares during the last quarter. Bank of New York Mellon Corp boosted its position in shares of General Mills by 26.1% during the first quarter. Bank of New York Mellon Corp now owns 7,013,411 shares of the company’s stock valued at $413,862,000 after buying an additional 1,449,632 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of General Mills by 5.3% during the first quarter. Geode Capital Management LLC now owns 5,814,657 shares of the company’s stock valued at $342,642,000 after buying an additional 295,119 shares during the last quarter. 69.38% of the stock is currently owned by institutional investors.
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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