Tag Archives: GIS

Kellogg Discontinues Operations In Crisis-Hit Venezuela; 'Absolutely Unconstitutional,' Sa

Kellogg Company (NYSE: K) has closed its operations in Venezuela in the face of tumultuous economic conditions. Poor access to raw materials due to economic barriers, supply chain disruptions and the limited access to dollars to import goods due to currency controls have disrupted operations of the company's Venezuelan subsidiary.

The Venezuelan division produced 75% of the breakfast cereals for the country, per the company's website and employed around 400 workers. Post the news of discontinuation of operations in Venezuela, Kellogg's manufacturing plant has been captured by the leftist government, under the leadership of President Nicolas Maduro. 

Importantly, Kellogg deconsolidated and changed to the cost method of accounting for the Venezuelan subsidiary in December 2016.

What Exactly Is Happening In Venezuela?

The oil-rich country of Venezuela is now reeling under hyperinflation and strict price controls. The country is divided between the followers of the United Socialist Party (PSUV), earlier led by Hugo Chávez and currently fronted by Nicolas Maduro, and those who want an end to the more than 15-years of rule of the party.

Venezuela, having one of the largest oil reserves in the world, heavily depended on revenues from oil imports for sustenance. During the presidency of Hugo Chavez in early 2000s, oil prices were booming. The leader used this money to fund various social programs and was successful in addressing illiteracy, healthcare and poverty issues. Also, the price of key items, food and medicines were fixed at a rate below the cost of production to make it affordable. Chavez also restricted the conversion of national currency into dollars and fixed the rate.

When oil prices began to fall the economy went haywire. The government failed to support the projects, paralyzing the country with poverty and inflation. Moreover, the government also stopped companies from raising prices to keep up with hyperinflation.

Venezuelan President Reacts

The enraged president Maduro decided to hand the company over to the workers so that they can continue production. He believes that Kellogg's exit is unconstitutional and has begun judicial proceedings against management.

In retaliation, Kellogg said that the company is not responsible for the unauthorized use of the commercial names as well as brands and will exercise legal actions if needed.

Importantly, Kellogg is not the first company to exit the country. Other companies include Clorox (NYSE: CLX), Kimberly-Clark (NYSE: KMB), General Mills (NYSE: GIS) and General Motors (NYSE: GM). Though Kellogg stated that it looks forward to resume operations once conditions improve, we believe that chances are dim considering the dismal economic situation.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Mackay Shields LLC Takes $6.44 Million Position in General Mills (GIS)

Mackay Shields LLC acquired a new stake in General Mills (NYSE:GIS) during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 143,018 shares of the company’s stock, valued at approximately $6,444,000.

A number of other institutional investors also recently added to or reduced their stakes in GIS. Avestar Capital LLC bought a new stake in General Mills in the fourth quarter worth approximately $100,000. Truewealth LLC bought a new stake in General Mills in the fourth quarter worth approximately $119,000. Financial Gravity Companies Inc. bought a new stake in General Mills in the fourth quarter worth approximately $131,000. Delpha Capital Management LLC bought a new stake in General Mills in the fourth quarter worth approximately $161,000. Finally, Front Row Advisors LLC bought a new stake in General Mills in the fourth quarter worth approximately $166,000. Hedge funds and other institutional investors own 74.51% of the company’s stock.

Get General Mills alerts:

GIS has been the subject of several recent research reports. Credit Suisse Group set a $62.00 target price on shares of General Mills and gave the stock a “hold” rating in a research report on Thursday, January 18th. Jefferies Group raised shares of General Mills from a “hold” rating to a “buy” rating and set a $56.00 target price for the company in a research report on Wednesday, February 14th. Susquehanna Bancshares set a $61.00 target price on shares of General Mills and gave the stock a “hold” rating in a research report on Friday, February 23rd. Societe Generale downgraded shares of General Mills from a “buy” rating to a “hold” rating and decreased their target price for the stock from $52.98 to $48.00 in a research report on Monday, February 26th. Finally, Zacks Investment Research raised shares of General Mills from a “hold” rating to a “buy” rating and set a $59.00 target price for the company in a research report on Monday, February 26th. Three research analysts have rated the stock with a sell rating, fourteen have given a hold rating and seven have issued a buy rating to the company. The stock has a consensus rating of “Hold” and an average target price of $53.71.

General Mills opened at $42.66 on Friday, according to Marketbeat. The company has a quick ratio of 0.45, a current ratio of 0.69 and a debt-to-equity ratio of 1.34. The firm has a market cap of $24.19 billion, a P/E ratio of 13.85, a PEG ratio of 1.85 and a beta of 0.76. General Mills has a 1 year low of $42.38 and a 1 year high of $42.96.

General Mills (NYSE:GIS) last posted its quarterly earnings data on Wednesday, March 21st. The company reported $0.79 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.78 by $0.01. The business had revenue of $3.88 billion during the quarter, compared to the consensus estimate of $3.87 billion. General Mills had a net margin of 13.96% and a return on equity of 37.64%. General Mills’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.72 EPS. equities research analysts expect that General Mills will post 3.07 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, May 1st. Investors of record on Tuesday, April 10th were issued a dividend of $0.49 per share. This represents a $1.96 annualized dividend and a dividend yield of 4.59%. The ex-dividend date of this dividend was Monday, April 9th. General Mills’s dividend payout ratio is currently 63.64%.

General Mills declared that its board has approved a stock buyback plan on Friday, February 23rd that authorizes the company to buyback shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

About General Mills

General Mills, Inc manufactures and markets branded consumer foods in the United States. The company operates in four segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; and Asia & Latin America. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, shelf stable and frozen vegetables, and ice cream and frozen desserts, as well as grain, fruit and savory snacks; and various organic products, including nutrition bars, meal kits, salty snacks, and ready-to-eat cereal.

Want to see what other hedge funds are holding GIS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for General Mills (NYSE:GIS).

Institutional Ownership by Quarter for General Mills (NYSE:GIS)

Mackay Shields LLC Takes $6.44 Million Position in General Mills (GIS)

Mackay Shields LLC acquired a new stake in General Mills (NYSE:GIS) during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 143,018 shares of the company’s stock, valued at approximately $6,444,000.

A number of other institutional investors also recently added to or reduced their stakes in GIS. Avestar Capital LLC bought a new stake in General Mills in the fourth quarter worth approximately $100,000. Truewealth LLC bought a new stake in General Mills in the fourth quarter worth approximately $119,000. Financial Gravity Companies Inc. bought a new stake in General Mills in the fourth quarter worth approximately $131,000. Delpha Capital Management LLC bought a new stake in General Mills in the fourth quarter worth approximately $161,000. Finally, Front Row Advisors LLC bought a new stake in General Mills in the fourth quarter worth approximately $166,000. Hedge funds and other institutional investors own 74.51% of the company’s stock.

Get General Mills alerts:

GIS has been the subject of several recent research reports. Credit Suisse Group set a $62.00 target price on shares of General Mills and gave the stock a “hold” rating in a research report on Thursday, January 18th. Jefferies Group raised shares of General Mills from a “hold” rating to a “buy” rating and set a $56.00 target price for the company in a research report on Wednesday, February 14th. Susquehanna Bancshares set a $61.00 target price on shares of General Mills and gave the stock a “hold” rating in a research report on Friday, February 23rd. Societe Generale downgraded shares of General Mills from a “buy” rating to a “hold” rating and decreased their target price for the stock from $52.98 to $48.00 in a research report on Monday, February 26th. Finally, Zacks Investment Research raised shares of General Mills from a “hold” rating to a “buy” rating and set a $59.00 target price for the company in a research report on Monday, February 26th. Three research analysts have rated the stock with a sell rating, fourteen have given a hold rating and seven have issued a buy rating to the company. The stock has a consensus rating of “Hold” and an average target price of $53.71.

General Mills opened at $42.66 on Friday, according to Marketbeat. The company has a quick ratio of 0.45, a current ratio of 0.69 and a debt-to-equity ratio of 1.34. The firm has a market cap of $24.19 billion, a P/E ratio of 13.85, a PEG ratio of 1.85 and a beta of 0.76. General Mills has a 1 year low of $42.38 and a 1 year high of $42.96.

General Mills (NYSE:GIS) last posted its quarterly earnings data on Wednesday, March 21st. The company reported $0.79 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.78 by $0.01. The business had revenue of $3.88 billion during the quarter, compared to the consensus estimate of $3.87 billion. General Mills had a net margin of 13.96% and a return on equity of 37.64%. General Mills’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.72 EPS. equities research analysts expect that General Mills will post 3.07 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, May 1st. Investors of record on Tuesday, April 10th were issued a dividend of $0.49 per share. This represents a $1.96 annualized dividend and a dividend yield of 4.59%. The ex-dividend date of this dividend was Monday, April 9th. General Mills’s dividend payout ratio is currently 63.64%.

General Mills declared that its board has approved a stock buyback plan on Friday, February 23rd that authorizes the company to buyback shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

About General Mills

General Mills, Inc manufactures and markets branded consumer foods in the United States. The company operates in four segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; and Asia & Latin America. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, shelf stable and frozen vegetables, and ice cream and frozen desserts, as well as grain, fruit and savory snacks; and various organic products, including nutrition bars, meal kits, salty snacks, and ready-to-eat cereal.

Want to see what other hedge funds are holding GIS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for General Mills (NYSE:GIS).

Institutional Ownership by Quarter for General Mills (NYSE:GIS)