Analysts at Consumer Edge downgraded shares of General Mills Inc. (NYSE: GIS) from Neutral to Underperform in a research note to investors today. The company currently has a rating of Underperform on the shares. The one-year price target of $68.75 is higher than the opening price of $65.20, causing a fair amount of other analysts to report on the stock in recent days. Looking back over the last year, General Mills Inc. stock has a high of $72.95. Downgrades happen when analysts believe that the future prospects for the security have weakened from the initial recommendation, usually caused by an important and crucial change in the company’s procedures, future vision or industry.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Yesterday General Mills Inc. (NYSE: GIS) shares last traded at $64.70, which represents a dip of $0.51 compared to the previous closing price. Opening at $65.20, they ranged from $64.66 and $65.40 throughout the day.
General Mills Inc. (NYSE: GIS) currently has a market cap of 38.63B.
The stock’s average daily volume is 3,609,220 shares out of a total float 595,629,000 and some 3,527,621 shares traded hands yesterday, 104 percent lower than normal. Momentum traders often use swings in trading volume to determine large volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts that investigate thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are considering.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, General Mills Inc. (NYSE: GIS) now has a 50-day MA of $69.44 and 200-day MA of $66.07. It has traded in a 52-week range between $53.53 – 72.95 and today’s last price is 0.11% lower than the 52 week high of $72.95.
Earnings growth is a crucial factor to research when buying stocks and investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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