Alley Investment Management Company LLC Increases Stock Position in Hershey Company (The) $HSY

Key Points

• Alley Investment Management increased its Hershey stake by 83.5% in the first quarter, buying 29,753 additional shares and bringing its total holding to 65,398 shares worth about $13.6 million.
• Hershey posted stronger-than-expected first-quarter results, with EPS of $2.35 versus the $2.04 consensus and revenue of $3.10 billion, up 10.7% year over year.
• The company also paid a quarterly dividend of $1.452 per share ($5.81 annualized), though its payout ratio is elevated at 108.19%, while analysts currently rate the stock a consensus Hold with a $217.50 price target.

Alley Investment Management Company LLC boosted its position in Hershey Company (The) (NYSE:HSY - Free Report) by 83.5% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 65,398 shares of the company's stock after purchasing an additional 29,753 shares during the period. Hershey comprises 1.7% of Alley Investment Management Company LLC's investment portfolio, making the stock its 26th biggest position. Alley Investment Management Company LLC's holdings in Hershey were worth $13,596,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Norges Bank bought a new position in Hershey in the 4th quarter valued at $272,506,000. Marshall Wace LLP boosted its stake in Hershey by 546.6% in the fourth quarter. Marshall Wace LLP now owns 1,057,476 shares of the company's stock valued at $192,439,000 after acquiring an additional 893,940 shares during the last quarter. First Trust Advisors LP grew its position in shares of Hershey by 240.0% during the 3rd quarter. First Trust Advisors LP now owns 1,262,671 shares of the company's stock valued at $236,183,000 after acquiring an additional 891,287 shares during the period. Balyasny Asset Management L.P. grew its position in shares of Hershey by 150.1% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,278,881 shares of the company's stock valued at $232,731,000 after acquiring an additional 767,478 shares during the period. Finally, Pacer Advisors Inc. increased its stake in shares of Hershey by 4,478.5% during the 4th quarter. Pacer Advisors Inc. now owns 586,141 shares of the company's stock worth $106,666,000 after purchasing an additional 573,339 shares during the last quarter. Hedge funds and other institutional investors own 57.96% of the company's stock.

Hershey Stock Performance

NYSE HSY opened at $175.18 on Wednesday. Hershey Company has a 52-week low of $160.07 and a 52-week high of $239.48. The company has a fifty day moving average of $185.55 and a 200-day moving average of $198.15. The company has a market capitalization of $35.53 billion, a P/E ratio of 32.62, a P/E/G ratio of 1.09 and a beta of 0.09. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 1.24.

Hershey (NYSE:HSY - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $2.35 EPS for the quarter, beating analysts' consensus estimates of $2.04 by $0.31. Hershey had a return on equity of 28.98% and a net margin of 9.12%.The business had revenue of $3.10 billion for the quarter, compared to analysts' expectations of $3.03 billion. During the same quarter in the prior year, the firm earned $2.09 earnings per share. The firm's revenue was up 10.7% on a year-over-year basis. As a group, equities research analysts predict that Hershey Company will post 8.45 EPS for the current fiscal year.

Hershey Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 15th were paid a $1.452 dividend. The ex-dividend date of this dividend was Friday, May 15th. This represents a $5.81 dividend on an annualized basis and a dividend yield of 3.3%. Hershey's dividend payout ratio is 108.19%.

Insider Activity at Hershey

In other Hershey news, CFO Steven E. Voskuil sold 1,500 shares of the business's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $173.43, for a total value of $260,145.00. Following the completion of the sale, the chief financial officer directly owned 54,695 shares of the company's stock, valued at $9,485,753.85. The trade was a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Corporate insiders own 0.08% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on HSY shares. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Hershey from $212.00 to $200.00 and set a "hold" rating on the stock in a report on Monday, March 30th. DA Davidson decreased their target price on Hershey from $230.00 to $208.00 and set a "neutral" rating for the company in a research report on Monday, May 4th. Evercore upgraded Hershey from an "in-line" rating to an "outperform" rating and set a $255.00 target price on the stock in a research note on Wednesday, May 27th. Mizuho cut their price objective on shares of Hershey from $195.00 to $185.00 and set a "neutral" rating for the company in a report on Wednesday, May 20th. Finally, The Goldman Sachs Group set a $240.00 target price on Hershey in a report on Friday, May 1st. Seven equities research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $217.50.

About Hershey

The Hershey Company NYSE: HSY is a leading North American chocolatier and snack manufacturer headquartered in Hershey, Pennsylvania. The company develops, produces and markets a wide range of confectionery and snack products for retail, foodservice and international customers. Hershey's business spans manufacturing, branded product marketing, packaging and distribution across grocery, convenience, mass merchant and e-commerce channels.

Hershey's product portfolio centers on chocolate and sugar confectionery, including core brands such as Hershey's, Reese's, Hershey's Kisses and Twizzlers, alongside non-chocolate snacks and confectionery brands.

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