General Mills Shares Approach Critical Support Level

Shares of the American food conglomerate General Mills have touched a new annual low. Investors are now looking ahead to the upcoming quarterly report for signs of a potential reversal, following a minor rebound at the start of the week that failed to alter the prevailing negative trend.

A significant valuation gap has emerged between General Mills and its industry peers, driven by persistent selling pressure. The company currently trades at a price-to-earnings (P/E) ratio of approximately 8.4, which stands far below the sector average of 23.5. This discount reflects the market's reaction to a 6.8% year-over-year decline in revenue reported last quarter, a drop that occurred despite the company posting an unexpected earnings-per-share profit.

Institutional Activity and Technical Outlook

The actions of major investors present a mixed picture. During the second quarter, Guggenheim Capital and Jump Financial substantially increased their holdings. Conversely, European asset manager Amundi reduced its position by 5.2%. In aggregate, institutional investors control roughly 75.7% of the company's shares.

Should investors sell immediately? Or is it worth buying General Mills?

For long-term shareholders, a potential bright spot is the stock's substantial dividend yield, currently near 5.3%. The next payout is scheduled for February 2026. However, the technical chart picture remains dominant, with the share price hovering near its yearly low and well below the average analyst price target of $55.82.

All attention is now firmly fixed on the quarterly earnings release scheduled for December 17. These results will be pivotal in determining whether the stock can establish a foundation for recovery at current price levels or if the downward trajectory will persist.