Despite General Mills Inc. [GIS]’s great opportunity, the stock is a bit overvalued

The price of General Mills Inc. (NYSE:GIS) shares last traded on Wall Street fell -1.71% to $83.78.

Based on available information, 21 analysts follow General Mills Inc. (NYSE:GIS). The consensus rating among analysts is ‘Hold’. As we calculate the median target price by taking the range between a high of $97.00 and a low of $67.00, we find $84.50. Given the previous closing price of $85.24, this indicates a potential downside of -0.87 percent. GIS stock price is now -3.85% away from the 50-day moving average and 2.69% away from the 200-day moving average. The market capitalization of the company currently stands at $48.80B.

Among analysts, 11 rate the stock a hold while 4 rate it a buy. Brokers who have rated the stock have averaged $84.50 as their price target over the next twelve months.

In other news, Cordani David, Director sold 8,675 shares of the company’s stock on May 17. The stock was sold for $776,847 at an average price of $89.55. Upon completion of the transaction, the Director now directly owns 7,885 shares in the company, valued at $0.66 million. An SEC document containing details of the transaction can be found on the SEC’s website. On May 16, Chief Accounting Officer Pallot Mark A sold 4,081 shares of the business’s stock. A total of $368,591 was realized by selling the stock at an average price of $90.32. This leaves the insider owning 13,121 shares of the company worth $1.1 million. Insiders disposed of 525,857 shares of company stock worth roughly $44.06 million over the past 1 year. A total of 0.20% of the company’s stock is owned by insiders.

There have been several recent changes in the stakes of large investors in GIS stock. A new stake in General Mills Inc. shares was purchased by OFI INVEST ASSET MANAGEMENT during the first quarter worth $809,720,000. NINETY ONE SA (PTY) LTD invested $17,471,000 in shares of GIS during the first quarter. In the first quarter, SUMMIT WEALTH GROUP, LLC acquired a new stake in General Mills Inc. valued at approximately $15,916,000. EMPOWER ADVISORY GROUP, LLC acquired a new stake in GIS for approximately $11,263,000. TWO SIGMA INVESTMENTS, LP purchased a new stake in GIS valued at around $9,237,000 in the second quarter. In total, there are 2,137 active investors with 78.10% ownership of the company’s stock.

A candlestick chart of General Mills Inc. (NYSE: GIS) showed a price of $85.43 on Tuesday morning. During the past 12 months, General Mills Inc. has had a low of $64.94 and a high of $90.89. As of last week, the company has a debt-to-equity ratio of 1.13, a current ratio of 0.50, and a quick ratio of 0.30. According to the stock market information, the enterprise value for the company is $60.18B, which is based on a 18.09 price-to-earnings ratio, a 2.57 price-to-earnings-growth ratio, and a beta of 0.26. The fifty day moving average price for GIS is $87.12 and a two-hundred day moving average price translates $81.61 for the stock.

The latest earnings results from General Mills Inc. (NYSE: GIS) was released for Feb, 2023. According to the Packaged Foods Company, earnings per share came in at $0.97, beating analysts’ expectations of $0.92 by 0.05. This compares to $1.08 EPS in the same period last year. The net profit margin was 14.00% and return on equity was 27.00% for GIS. The company reported revenue of $5.13 billion for the quarter, compared to $4.54 billion a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue rose 12.96 percent. For the current quarter, analysts expect GIS to generate $5.15B in revenue.

Moreover, the firm recently paid out its quarterly dividend on 05/01/2023. Investors who held shares on 04/10/2023 were paid a $0.54 dividend. On an annualized basis, this represents a $2.16 dividend and a 2.58% percent yield. There was an ex-dividend date of 04/06/2023 for this dividend. In terms of dividend payout ratio, GIS is presently at 45.50%.

General Mills Inc.(GIS) Company Profile

General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates in five segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and salty snacks, ice cream, nutrition bars, wellness beverages, and savory and grain snacks, as well as various organic products, including frozen and shelf-stable vegetables. It also supplies branded and unbranded food products to the North American foodservice and commercial baking industries; and manufactures and markets pet food products, including dog and cat food. The company markets its products under the Annie’s, Betty Crocker, Bisquick, Blue Buffalo, Blue Basics, Blue Freedom, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto’s, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jus-Rol, Kitano, Kix, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Oui, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino’s, Trix, Wanchai Ferry, Wheaties, Wilderness, Yoki, and Yoplait trademarks. It sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores, as well as drug, dollar, and discount chains. The company operates 466 leased and 392 franchise ice cream parlors. General Mills, Inc. was founded in 1866 and is headquartered in Minneapolis, Minnesota.