Stock Analysis
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General Mills, Inc. (NYSE:GIS) insiders sold US$6.8m worth of stock suggesting impending weakness.
In the last year, many General Mills, Inc. (NYSE:GIS) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for General Mills
The Last 12 Months Of Insider Transactions At General Mills
Over the last year, we can see that the biggest insider sale was by the Group President of North America Retail, Jonathon Nudi, for US$2.0m worth of shares, at about US$77.50 per share. That means that an insider was selling shares at slightly below the current price (US$79.79). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 24% of Jonathon Nudi's holding.
In the last year General Mills insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of General Mills
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that General Mills insiders own 0.3% of the company, worth about US$119m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About General Mills Insiders?
The fact that there have been no General Mills insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of General Mills insider transactions don't fill us with confidence. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for General Mills that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
What are the risks and opportunities for General Mills?
General Mills, Inc. manufactures and markets branded consumer foods worldwide.
Rewards
Trading at 20.5% below our estimate of its fair value
Earnings are forecast to grow 3.79% per year
Earnings grew by 21.8% over the past year
Risks
Has a high level of debt
Further research on
General Mills
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NYSE:GIS
General Mills
General Mills, Inc. manufactures and markets branded consumer foods worldwide.
Undervalued with solid track record and pays a dividend.
