DA Davidson Has Bearish Outlook for Hershey FY2025 Earnings

Key Points

• DA Davidson has lowered Hershey's FY2025 earnings estimates from $6.05 to $5.89 per share, maintaining a "Neutral" rating with a price target of $188.00.
• Hershey's most recent quarterly earnings report showed an EPS of $1.21, surpassing the consensus estimate of $0.98, with a revenue of $2.61 billion.
• The company announced a quarterly dividend of $1.37, translating to an annualized dividend yield of 2.9% with a payout ratio of 72.78%.

Hershey Company (The) (NYSE:HSY - Free Report) - DA Davidson cut their FY2025 EPS estimates for Hershey in a research report issued on Monday, August 4th. DA Davidson analyst B. Holland now anticipates that the company will post earnings of $5.89 per share for the year, down from their prior estimate of $6.05. DA Davidson has a "Neutral" rating and a $188.00 price target on the stock. The consensus estimate for Hershey's current full-year earnings is $6.12 per share. DA Davidson also issued estimates for Hershey's FY2026 earnings at $6.40 EPS.

A number of other equities research analysts also recently weighed in on HSY. Wells Fargo & Company lifted their target price on Hershey from $135.00 to $154.00 and gave the stock an "underweight" rating in a report on Thursday, July 31st. Stifel Nicolaus lifted their price objective on shares of Hershey from $160.00 to $180.00 and gave the company a "hold" rating in a research note on Tuesday, July 29th. Sanford C. Bernstein lifted their price target on shares of Hershey from $155.00 to $179.00 and gave the company a "market perform" rating in a report on Thursday, July 31st. Morgan Stanley boosted their target price on shares of Hershey from $173.00 to $189.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Finally, Wall Street Zen raised shares of Hershey from a "sell" rating to a "hold" rating in a research note on Saturday, August 2nd. Five analysts have rated the stock with a sell rating and sixteen have issued a hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $169.68.

Hershey Stock Down 1.8%

Shares of NYSE:HSY traded down $3.29 during midday trading on Wednesday, hitting $184.21. The stock had a trading volume of 1,655,457 shares, compared to its average volume of 1,824,238. The company has a market cap of $37.34 billion, a P/E ratio of 24.46, a PEG ratio of 4.52 and a beta of 0.27. The business's 50-day simple moving average is $173.53 and its 200-day simple moving average is $167.31. Hershey has a 12 month low of $140.13 and a 12 month high of $208.03. The company has a quick ratio of 0.89, a current ratio of 1.53 and a debt-to-equity ratio of 1.15.

Hershey (NYSE:HSY - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $1.21 EPS for the quarter, topping the consensus estimate of $0.98 by $0.23. The business had revenue of $2.61 billion during the quarter, compared to analysts' expectations of $2.50 billion. Hershey had a net margin of 13.54% and a return on equity of 37.36%. The firm's revenue was up 26.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.27 earnings per share.

Hershey Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 15th will be paid a $1.37 dividend. This represents a $5.48 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, August 15th. Hershey's dividend payout ratio (DPR) is presently 72.78%.

Insiders Place Their Bets

In other Hershey news, CEO Michele Buck sold 19,290 shares of Hershey stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $194.00, for a total transaction of $3,742,260.00. Following the transaction, the chief executive officer owned 193,624 shares of the company's stock, valued at $37,563,056. The trade was a 9.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Steven E. Voskuil sold 5,000 shares of the stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $180.00, for a total value of $900,000.00. Following the completion of the sale, the chief financial officer directly owned 61,319 shares of the company's stock, valued at $11,037,420. The trade was a 7.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 118,311 shares of company stock valued at $20,931,348. 0.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Montag & Caldwell LLC acquired a new position in shares of Hershey during the 4th quarter worth $25,000. Putney Financial Group LLC acquired a new position in Hershey during the fourth quarter worth about $25,000. Mpwm Advisory Solutions LLC acquired a new position in Hershey during the fourth quarter worth about $28,000. Proffitt & Goodson Inc. purchased a new stake in shares of Hershey in the first quarter valued at about $28,000. Finally, Trust Co. of Toledo NA OH acquired a new stake in shares of Hershey in the second quarter valued at approximately $28,000. 57.96% of the stock is owned by hedge funds and other institutional investors.

Hershey Company Profile

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.