The stock is brushing off upbeat fiscal second-quarter results
General Mills Inc (NYSE:GIS) stock is sliding, despite its fiscal second-quarter earnings beat and raised forecast, as the company's comments cast a shadow. The retailer said its pet food business saw inventory reductions at some key retailers, and J.P. Morgan noted that "the quality of the quarter won't be considered great given that the highly valued pet business surprised so much to the downside." General Mills also pointed to higher raw material costs amid high inflation. At last glance, GIS was down 3.9% at $83.74.
This negative price action has General Mills stock distancing itself from its Dec. 14 record high of $88.34. The equity's 40-day moving average seems to be keeping losses in check, however. Year-to-date, the equity is up 24.5%.
Options traders are targeting GIS at six times the intraday average today, with 4,021 calls and 6,427 puts exchanged. The January 2023 85-strike put is the most active contract.
The brokerage bunch leans bearish, with 10 of the 14 in coverage carrying a "hold" or worse rating. Plus, the 12-month consensus target price of $80.44 is a 4.3% discount to current levels.