Barclays Issues Pessimistic Forecast for Hershey (NYSE:HSY) Stock Price

Key Points

• Barclays lowered Hershey’s price target from $178 to $171 and maintained an “equal weight” rating, implying virtually no upside from the stock’s $171.24 price.
• Analyst sentiment remains mixed but leans toward caution: Hershey has a consensus “Hold” rating and an average price target of $193.81, with 17 Holds, seven Buys, and one Sell.
• Hershey recently exceeded quarterly expectations, reporting $2.64 in adjusted earnings per share versus $2.11 expected and $3.28 billion in revenue, up 3% year over year.

Hershey (NYSE:HSY - Get Free Report) had its price objective cut by research analysts at Barclays from $178.00 to $171.00 in a note issued to investors on Monday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Barclays's price target would indicate a potential downside of 0.14% from the stock's current price.

A number of other equities research analysts have also recently weighed in on the company. BNP Paribas Exane dropped their price target on Hershey from $195.00 to $190.00 and set an "outperform" rating for the company in a report on Tuesday, October 27th. Rothschild & Co Redburn boosted their price objective on Hershey from $166.00 to $170.00 and gave the stock a "sell" rating in a research note on Wednesday, August 5th. UBS Group decreased their target price on Hershey from $178.00 to $175.00 and set a "neutral" rating on the stock in a report on Friday. Bank of America restated a "neutral" rating and issued a $170.00 target price on shares of Hershey in a research note on Friday. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $201.00 price target (down from $208.00) on shares of Hershey in a report on Friday, July 31st. Seven investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $193.81.

Hershey Stock Performance

Shares of NYSE HSY traded up $5.63 during trading hours on Monday, hitting $171.24. 1,996,574 shares of the stock were exchanged, compared to its average volume of 1,844,942. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.24 and a quick ratio of 0.72. The company's 50 day moving average is $169.68 and its 200 day moving average is $189.03. The firm has a market capitalization of $34.41 billion, a P/E ratio of 19.37, a P/E/G ratio of 1.45 and a beta of 0.08. Hershey has a one year low of $156.16 and a one year high of $239.48.

Hershey (NYSE:HSY - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $2.64 earnings per share for the quarter, beating analysts' consensus estimates of $2.11 by $0.53. The firm had revenue of $3.28 billion during the quarter, compared to the consensus estimate of $3.25 billion. Hershey had a net margin of 14.63% and a return on equity of 37.12%. The business's revenue was up 3.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.30 EPS. On average, research analysts expect that Hershey will post 8.61 EPS for the current year.

Hedge Funds Weigh In On Hershey

A number of large investors have recently added to or reduced their stakes in HSY. Fifth Third Bancorp boosted its holdings in shares of Hershey by 126.4% in the first quarter. Fifth Third Bancorp now owns 84,215 shares of the company's stock valued at $17,508,000 after buying an additional 47,017 shares during the period. The Manufacturers Life Insurance Company increased its position in shares of Hershey by 125.9% during the second quarter. The Manufacturers Life Insurance Company now owns 196,337 shares of the company's stock worth $34,447,000 after acquiring an additional 109,418 shares in the last quarter. Hsbc Holdings PLC acquired a new stake in shares of Hershey during the second quarter worth $62,664,000. Bank of America Corp DE acquired a new stake in shares of Hershey during the second quarter worth $274,871,000. Finally, Envestnet Asset Management Inc. raised its holdings in shares of Hershey by 11.8% during the second quarter. Envestnet Asset Management Inc. now owns 1,128,711 shares of the company's stock worth $198,032,000 after acquiring an additional 118,825 shares during the period. Institutional investors own 57.96% of the company's stock.

Hershey Company Profile

The Hershey Company NYSE: HSY is a global confectionery and snack food manufacturer headquartered in Hershey, Pennsylvania. Founded by Milton S. Hershey in 1894, the company began as a chocolate producer and has grown into one of the largest branded snack businesses in North America.

Hershey's portfolio includes chocolate, non-chocolate confectionery, gum and mints, and salty snacks. Its brands include Hershey's, Reese's, Hershey's Kisses, Kit Kat in the United States under license from Nestlé, Jolly Rancher, Twizzlers, Ice Breakers, SkinnyPop and Dot's Pretzels.

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