Stock on Traders Radar: General Mills, Inc. (GIS)

The company has PEG ratio of 3.57 and price to cash ratio of 43.45.

The maker of Cheerios breakfast cereal said net sales slipped to $3.79 billion in the third quarter ended February 26, from $4 billion a year earlier, marking the seventh straight quarterly decline. (GIS) has received mean Analyst rating of 2.89 from polled analysts at Reuters 2 Month Ago. Royal Bank of Canada reiterated a “hold” rating on shares of General Mills in a research note on Sunday, March 12th. BofA/Merrill also Upgrade the company to Neutral on 30-Jun-16, 2016.

In other General Mills news, Director Robert L. Ryan sold 20,000 shares of the stock in a transaction dated Wednesday, January 11th. It has gained $12.69 (-15.91%) since hitting a 52-week high price of $72.95. The company’s market cap is $35.18 Billion. GIS’s seven period stock performance has resulted in shares declining by a -0.43% and sporting a 0.42% return over the last 12 months. “We’ve added support in the fourth quarter to strengthen key business lines, and we’re pursuing global growth priorities that will further improve our sales trends beyond fiscal 2017”.

The most widely applied is the price earnings ratio, which is known by dividing the stock price by the prediction earnings per share.

Expect to see some stability in the shares as they reach an oversold indication soon, but the trend indicators are suggesting that this consumer staples company is set to continue under performing the market. Post-earnings, GIS stock ranged between $68 and $71.78 after opening the day (06/30/2016) at $68.

General Mills, Inc. shares fell $0.40 (-0.66%) in premarket trading Tuesday. (GIS) reported Q1 earnings of $0.78, beating consensus estimates of $0.75. The average and low price target for the stock are $62.27 and $48, respectively.

Let’s also take a brief look at the stock price in relation to some highs/lows and moving averages.

The company’s total sales, including the convenience store and foodservice and global segment, fell 5 percent to $3.79 billion, less than the $3.82 billion analysts surveyed by Zacks expected. A mean score of $2.64 was instituted. Out of 0 brokerage recommendations, 0 gave a Strong Buy, 0 issued a Buy, 0 issued Hold, 0 rated Under-perform and 0 issued a Sell. General Mills-which sells yogurts under the Yoplait, GoGurt, Annie’s and Liberté names-has badly underperformed the yogurt category and has now posted steep double-digit sales declines in the US for all three quarters of the current fiscal year. The Stock declined on the very next day of earnings and maintained its stock price at $61.45 by showing a % change of -2.55 percent from its previous closing price. Thus showing a Surprise of 10 percent.

Profitability analysis helps a great deal in making investment decision. Beta factor was calculated at 0.57. (NYSE:GIS) dropped to -1.21% from $64.21 to $63.43. Company price to earnings (P/E) ratio, which measures the relationship between the earnings of a company and its stock price, is calculated as 21.33. Return on equity measures is a company’s ability to turn an investor’s equity into profit. Current ratio which is the relationship between current assets and current liabilities, indicating the liquidity of a business is calculated as 0.70.