Stock Analysis

General Mills, Inc. (NYSE:GIS) insiders sold US$6.8m worth of stock suggesting impending weakness.

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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!

NYSE:GIS Insider Trading Volume March 19th 2023

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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.

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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.

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  • 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


  • Has a high level of debt

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