General Mills $GIS Insider Sells $2 Million Worth of Stock

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General Mills $GIS stock fell -3.5% after news circulated that its Group President sold $2 million worth of stock.

General Mills Exec Sells $2 Million In Stock

On October 3, 2022, in a regulatory filing, General Mills disclosed that its Group President Jonathon Nudi sold 25.9K shares of common stock on September 30th in a total transaction size of just over $20 million.

Dark Pool Sell Order In General Mills $GIS Stock

On October 6, 2022, an unusual dark pool trade occurred in $GIS stock. The dark pool order was valued at $26 million which suggests the activity from an institutional investor trying to hide activity over dark pools. We believe the dark pool trade was a sell order because of how $GIS stock fell immediately following the print.

Consumer Defensive or Consumer Discretionary?

General Mills $GIS stock is thought by most to be a Consumer Defensive stock because it’s a food item. The market seems to be disagreeing with that categorization. We think that $GIS is more of a Consumer Discretionary stock than most think because of product substitution. As the economy continues to get worse, people will find cheaper substitutes of General Mills more expensive brands like Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait, and others. For example, General Mills sells Honey Nut Cheerios for $3 a box compared with Walmart’s generic Honey Nut O’s which goes for $1.75 a box. That’s a huge savings via product substitution.

Walmart Warning and Cautious View From Morgan Stanley

On July 26, 2022, Morgan Stanley analyst Pamela Kaufman said Walmart’s (WMT) Q2 pre-announcement and FY23 EPS guidance cut point to a more challenging backdrop for packaged food and reinforces her cautious view on the “center-store food companies.” Consumers are under pressure, which increases trade down risk, and she thinks the companies could see increasing pushback to packaged food price increases, Kaufman tells investors. While she expects near-term Q2 results from packaged food companies to show solid growth, she sees increasing risk to sales over the coming quarters and sees risk to companies including J.M. Smucker (SJM), General Mills (GIS), Kraft Heinz (KHC), Conagra Brands (CAG) and Campbell Soup (CPB).

Global food insecurity is a very real threat, says Institute of International Finance CEO

Global food insecurity is a very real threat, says Institute of International Finance CEO

General Mills $GIS Stock Technical Analysis

General Mills $GIS stock is testing its lower trend channel support. The MACD and CMF both went negative on October 6, 2022. The Hull Moving Average gave a sell signal on October 5, 2022.

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