General Mills Nears a Decade Low as Wall Street Slashes Price Targets and Insiders Reduce Stakes

The selloff in General Mills shares has gathered pace, dragging the stock toward a fresh 52-week trough and pushing its dividend yield above 7%. Investors are wrestling with whether the battered valuation now reflects the risks or still has further to fall.

The trigger for the latest leg lower was a disappointing fiscal third-quarter report. Revenue slipped to $4.44 billion, while earnings per share of $0.64 missed analyst estimates by a clear margin. Net income tumbled from $625.5 million a year earlier to just $303 million, underscoring the magnitude of the profit squeeze.

A string of Wall Street banks responded by pruning their price targets. BNP Paribas cut its target to $37 with a "Neutral" rating, while JPMorgan lowered its to $36. Wells Fargo stood out as the most bearish, reducing its target to $30 with an "Underweight" recommendation. Goldman Sachs, meanwhile, trimmed its target to $40 but maintained a "Neutral" stance. The consensus view is that General Mills still has work to do to restore profitability.

At the current share price, the company trades at roughly eight times earnings — well below its historical average in the packaged food sector. The market capitalisation stands at about $18 billion. For income investors, the plunge has pushed the dividend yield to approximately 7.3%, with free cash flow covering the payout by a factor of 1.27 over the first nine months of the fiscal year. That coverage provides some cushion, even as operating earnings remain under pressure.

Should investors sell immediately? Or is it worth buying General Mills?

The management team is attempting to accelerate a turnaround through structural changes. In September, most North American employees will be required to work from the office four days a week — Monday through Thursday — in a bid to speed up decision-making around brand renovation and packaging innovation. The strategy, dubbed "Remarkability," is the company's answer to years of declining sales volumes.

A leadership reshuffle is also under way. Dana McNabb will take over as chief operating officer in June, a move intended to sharpen execution of the "Accelerate" initiative, which focuses on brand building and capturing scale efficiencies across the global portfolio. The pet food segment, which commands higher margins, is seen by some analysts as a potential stabiliser.

Investor sentiment remains mixed. Resona Asset Management trimmed its stake, while the North Dakota state pension fund initiated a new position. Perhaps more telling were the insider sales: in mid-May, two senior executives offloaded nearly 18,000 shares at prices around $34 each. That came shortly before the stock sank to its current lows.

General Mills at a turning point? This analysis reveals what investors need to know now.

The next major catalyst is the dbAccess Global Consumer Conference in June, where the chief financial officer and the new COO are scheduled to present. Analysts will be looking for clarity on how the company plans to revive organic growth — including higher marketing spend and new product launches such as protein-rich snacks. If the management fails to deliver a convincing roadmap, the shares could face additional downside. General Mills has maintained its full-year guidance for 2026 but cautioned that a recovery in volume will be gradual and costly.

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