General Mills (NYSE:GIS) Shares Up 7.9% – Should You Buy?

General Mills, Inc. (NYSE:GIS) shot up 7.9% on Thursday. The stock traded as high as $35.19 and last traded at $35.1520. Approximately 11,385,812 shares were traded during trading, an increase of 19% from the average daily volume of 9,586,374 shares. The stock had previously closed at $32.57.

Trending Headlines about General Mills

Here are the key news stories impacting General Mills this week:

• Positive Sentiment: Expansion into high-protein snacking: General Mills has launched EPIC Sticks, a four-flavor meat-snack line made with grass-fed beef or free-range chicken. Its gluten-free, dairy-free and Paleo-friendly positioning gives the company exposure to growing demand for convenient, protein-rich snacks and could broaden EPIC’s shelf presence. How EPIC Sticks Launch At General Mills Has Changed Its Investment Story
• Positive Sentiment: Recent earnings modestly exceeded expectations: General Mills previously reported adjusted earnings of $0.75 per share versus the $0.72 consensus estimate, while revenue of $4.39 billion also topped forecasts. The stock was reported to be about 1% higher since that earnings release, although analysts are watching whether estimates support continued momentum. General Mills Up 1% Since Last Earnings Report: Can It Continue?
• Neutral Sentiment: Valuation debate: Commentary suggests the stock’s roughly 38% three-year decline may have reset expectations, but investors still need evidence that General Mills can stabilize its sales base and restore growth. General Mills Stock Seems About Right On Its 38% Slide
• Negative Sentiment: Fundamental and competitive concerns remain: General Mills faces established food giants and agile snack competitors, including Chomps and PepsiCo’s Good Warrior. Revenue in the latest reported quarter declined 2.8% year over year, and commentary questioning the company’s fundamentals could limit investor enthusiasm despite new product launches. 3 Mid-Cap Stocks With Questionable Fundamentals

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on GIS shares. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $45.00 price target on shares of General Mills in a report on Monday, September 21st. JPMorgan Chase & Co. increased their price target on shares of General Mills from $31.00 to $35.00 and gave the company an “underweight” rating in a research note on Thursday, July 2nd. UBS Group reissued a “sell” rating on shares of General Mills in a report on Wednesday, September 16th. Weiss Ratings downgraded shares of General Mills from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, October 14th. Finally, Evercore set a $38.00 price objective on shares of General Mills in a research report on Monday, September 14th. Four investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and six have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $36.59.

General Mills Stock Performance

The company has a debt-to-equity ratio of 1.66, a current ratio of 0.70 and a quick ratio of 0.39. The stock has a 50 day simple moving average of $35.93 and a two-hundred day simple moving average of $35.55. The company has a market cap of $18.39 billion, a PE ratio of -20.71, a PEG ratio of 1.91 and a beta of 0.03.

General Mills (NYSE:GIS) last posted its quarterly earnings data on Wednesday, September 23rd. The company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.03. The business had revenue of $4.39 billion during the quarter, compared to the consensus estimate of $4.35 billion. General Mills had a positive return on equity of 21.86% and a negative net margin of 4.89%. The company’s revenue was down 2.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.86 earnings per share. Equities analysts predict that General Mills, Inc. will post 3.08 EPS for the current year.

General Mills Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Tuesday, October 13th will be given a dividend of $0.61 per share. This represents a $2.44 annualized dividend and a yield of 7.1%. The ex-dividend date of this dividend is Tuesday, October 13th. General Mills’s dividend payout ratio (DPR) is presently -146.99%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Sigma Planning Corp grew its holdings in General Mills by 35.7% in the third quarter. Sigma Planning Corp now owns 137,808 shares of the company’s stock valued at $4,432,000 after purchasing an additional 36,280 shares during the last quarter. Probity Advisors Inc. increased its position in shares of General Mills by 8.9% in the third quarter. Probity Advisors Inc. now owns 17,021 shares of the company’s stock valued at $547,000 after buying an additional 1,386 shares in the last quarter. Signaturefd LLC increased its position in shares of General Mills by 22.6% in the third quarter. Signaturefd LLC now owns 29,451 shares of the company’s stock valued at $947,000 after buying an additional 5,427 shares in the last quarter. Citizens Financial Group Inc. RI raised its stake in shares of General Mills by 23.4% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 24,493 shares of the company’s stock worth $788,000 after buying an additional 4,641 shares during the last quarter. Finally, Simplicity Wealth LLC raised its stake in shares of General Mills by 65.6% during the 3rd quarter. Simplicity Wealth LLC now owns 24,695 shares of the company’s stock worth $794,000 after buying an additional 9,787 shares during the last quarter. 75.71% of the stock is currently owned by institutional investors and hedge funds.

About General Mills

General Mills, Inc is a global food company that manufactures and markets branded consumer foods. Its portfolio includes cereal, snack foods, refrigerated and baking products, yogurt, soup, meals, and pet food. The company’s brands include Cheerios, Cinnamon Toast Crunch, Nature Valley, Betty Crocker, Pillsbury, Yoplait, Old El Paso, Progresso, Annie’s, Totino’s, Häagen-Dazs, and Blue Buffalo.

General Mills sells products through grocery stores, mass merchandisers, convenience stores, e-commerce channels, restaurants, and other foodservice outlets.