BNP Paribas Exane Upgrades Hershey (NYSE:HSY) to Outperform

Key Points

• BNP Paribas Exane has upgraded Hershey (NYSE:HSY) from a "neutral" rating to an "outperform" rating, indicating increased confidence in the company's stock performance.
• Several analysts have raised their target prices for Hershey; notably, Bank of America increased it from $175.00 to $208.00, while Sanford C. Bernstein set it at $179.00.
• Hershey reported strong quarterly earnings with $2.61 billion in revenue and an EPS of $1.21, beating analyst estimates and reflecting a 26.0% year-over-year revenue growth.

Hershey (NYSE:HSY - Get Free Report) was upgraded by BNP Paribas Exane from a "neutral" rating to an "outperform" rating in a note issued to investors on Monday, Marketbeat.com reports.

Other analysts have also issued research reports about the stock. Sanford C. Bernstein lifted their target price on shares of Hershey from $155.00 to $179.00 and gave the company a "market perform" rating in a research report on Thursday, July 31st. DA Davidson lifted their target price on shares of Hershey from $171.00 to $188.00 and gave the company a "neutral" rating in a research report on Monday, August 4th. Wells Fargo & Company lifted their target price on shares of Hershey from $135.00 to $154.00 and gave the company an "underweight" rating in a research report on Thursday, July 31st. Bank of America lifted their target price on shares of Hershey from $175.00 to $208.00 and gave the company a "neutral" rating in a research report on Thursday, July 31st. Finally, Wall Street Zen upgraded shares of Hershey from a "sell" rating to a "hold" rating in a research report on Saturday, August 2nd. One analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $171.22.

Hershey Stock Down 0.3%

HSY stock opened at $184.95 on Monday. The firm has a market cap of $37.49 billion, a PE ratio of 24.56, a P/E/G ratio of 4.47 and a beta of 0.27. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.89 and a current ratio of 1.53. The firm's fifty day moving average is $180.35 and its 200 day moving average is $171.70. Hershey has a one year low of $140.13 and a one year high of $208.03.

Hershey (NYSE:HSY - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $1.21 EPS for the quarter, beating the consensus estimate of $0.98 by $0.23. The company had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.50 billion. Hershey had a net margin of 13.54% and a return on equity of 37.36%. During the same quarter last year, the business earned $1.27 earnings per share. The firm's revenue was up 26.0% on a year-over-year basis. Hershey has set its FY 2025 guidance at 5.809-5.997 EPS. On average, research analysts forecast that Hershey will post 6.12 EPS for the current year.

Insider Buying and Selling at Hershey

In other news, insider Rohit Grover sold 1,334 shares of the firm's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $180.00, for a total value of $240,120.00. Following the transaction, the insider directly owned 38,068 shares of the company's stock, valued at approximately $6,852,240. This trade represents a 3.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Steven E. Voskuil sold 5,000 shares of Hershey stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $180.00, for a total transaction of $900,000.00. Following the transaction, the chief financial officer directly owned 61,319 shares in the company, valued at $11,037,420. This trade represents a 7.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 86,127 shares of company stock valued at $15,759,755. Corporate insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On Hershey

Institutional investors have recently bought and sold shares of the company. Kennon Green & Company LLC raised its stake in Hershey by 33.3% during the first quarter. Kennon Green & Company LLC now owns 43,146 shares of the company's stock worth $7,379,000 after purchasing an additional 10,784 shares during the period. William Allan Corp raised its stake in Hershey by 173.1% during the first quarter. William Allan Corp now owns 18,593 shares of the company's stock worth $3,180,000 after purchasing an additional 11,785 shares during the period. IFM Investors Pty Ltd raised its stake in Hershey by 9.5% during the first quarter. IFM Investors Pty Ltd now owns 31,925 shares of the company's stock worth $5,460,000 after purchasing an additional 2,757 shares during the period. Envestnet Portfolio Solutions Inc. raised its stake in shares of Hershey by 8.1% in the 1st quarter. Envestnet Portfolio Solutions Inc. now owns 18,625 shares of the company's stock valued at $3,186,000 after acquiring an additional 1,390 shares during the period. Finally, Nuveen LLC purchased a new stake in shares of Hershey in the 1st quarter valued at approximately $55,269,000. 57.96% of the stock is owned by hedge funds and other institutional investors.

About Hershey

The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; protein bars; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, bars, snack bites, mixes, popcorn, and pretzels.

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