General Mills: 3 Different Insiders Have Sold Shares During The Last 30 Days

Apr.15.14 | About: General Mills, (GIS)

Summary

Three insiders sold General Mills stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All three of these insiders decreased their holdings by more than 10%.

General Mills (NYSE:GIS) produces and markets branded consumer foods in the United States and internationally.

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Insider selling during the last 30 days

Here is a table of General Mills' insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Kimberly Nelson SVP April 9 52,201 No 122,092 shares 30.0%
Judith Richards Hope Director April 7 10,000 No 74,194 shares 11.9%
John Church EVP March 27-28 134,912 No 117,006 shares 53.6%
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There have been 197,113 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of General Mills' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 62,201 0
March 2014 134,912 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 32,400 0
September 2013 0 0
August 2013 3,300 0
July 2013 101,008 0
June 2013 0 0
May 2013 10,526 0
April 2013 70,000 0
March 2013 5,084 0
February 2013 12,460 0
January 2013 6,792 0
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There have been 438,683 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.

Financials

General Mills reported the fiscal 2014 third-quarter, which ended February 23, financial results on March 19 with the following highlights:

Revenue $4.4 billion
Net income $410.6 million
Cash $847.1 million
Debt $8.9 billion
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(Source: Earnings presentation)

The three insiders sold their shares after these results.

Outlook

General Mills' guidance is as follows:

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(Source: Earnings presentation)

Competition

General Mills' competitors include Kellogg (NYSE:K). Here is a table comparing these two companies.

Company GIS K
Market Cap: 31.43B 23.76B
Employees: 41,000 30,277
Qtrly Rev Growth (yoy): -0.01 -0.02
Revenue: 18.04B 14.79B
Gross Margin: 0.36 0.41
EBITDA: 3.50B 3.68B
Operating Margin: 0.16 0.21
Net Income: 1.79B 1.81B
EPS: 2.73 4.94
P/E: 18.76 13.30
PEG (5 yr expected): 2.49 2.82
P/S: 1.74 1.60
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General Mills has a higher P/E ratio than Kellogg. In Kellogg, there have been 516,870 shares sold and there have been zero shares purchased by insiders this year. Only General Mills has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling General Mills, and there have not been any insiders buying General Mills during the last 30 days. All three of these insiders decreased their holdings by more than 10%. General Mills has an insider ownership of 0.11%.

Before going short General Mills, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are negative revenue growth and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.