The food manufacturer cut its annual profit outlook
Shares of General Mills Inc (NYSE:GIS) are down 2.9% at $64.01 at last check, brushing off better-than-expected fiscal second-quarter earnings and revenue. The food manufacturer's disappointing 2025 profit outlook is weighing on the stock, as the company invests in promotions to draw in cash-strapped customers.
Trading at its lowest level in over three weeks, GIS is back below recent support at its 20-day moving average. Today's slide also has the equity slipping into the red for 2024.
There's still plenty of room for downgrades and/or price-target cuts, with 13 of the 18 firms in coverage sporting a tepid "hold" rating on GIS, while the remaining five say "strong buy." Plus, the 12-month consensus target price of $73.80 is a 15.8% premium to current levels.
Options traders lean firmly bullish. This is per the security's 50-day call/put volume ratio of 2.75 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 97% of readings from the past year.
Drilling down to today's options activity, 2,961 calls and 2,941 puts have crossed the tape, which is seven times the volume typically seen at this point. Positions are being opened at the most active contract, which is the December 62.50 put.