Gabelli Funds LLC Reduces Stock Position in Hershey Company (The) $HSY

Key Points

• Gabelli Funds LLC cut its Hershey stake by 34.7% in the fourth quarter, selling 8,500 shares and leaving it with 16,000 shares valued at about $2.91 million.
• Hershey’s latest quarterly results beat expectations, posting EPS of $2.35 versus the $2.04 estimate and revenue of $3.10 billion, up 10.7% year over year.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Hold” with an average price target of $217.78, while the shares recently opened at $190.49 and offer a 3.0% dividend yield.

Gabelli Funds LLC lessened its stake in shares of Hershey Company (The) (NYSE:HSY - Free Report) by 34.7% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 16,000 shares of the company's stock after selling 8,500 shares during the quarter. Gabelli Funds LLC's holdings in Hershey were worth $2,912,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. JPL Wealth Management LLC purchased a new stake in Hershey during the 3rd quarter worth about $26,000. Laurel Wealth Advisors LLC purchased a new stake in Hershey during the 4th quarter worth about $27,000. Measured Wealth Private Client Group LLC purchased a new stake in Hershey in the 3rd quarter valued at about $35,000. Atlantic Edge Private Wealth Management LLC purchased a new stake in Hershey in the 4th quarter valued at about $42,000. Finally, WHI TRUST Co LLC purchased a new stake in Hershey in the 4th quarter valued at about $45,000. Hedge funds and other institutional investors own 57.96% of the company's stock.

Analyst Ratings Changes

Several research firms have commented on HSY. The Goldman Sachs Group set a $240.00 price target on Hershey in a report on Friday, May 1st. JPMorgan Chase & Co. lowered their price target on Hershey from $211.00 to $204.00 and set a "neutral" rating for the company in a report on Friday, May 1st. Mizuho lowered their price target on Hershey from $195.00 to $185.00 and set a "neutral" rating for the company in a report on Wednesday. Piper Sandler restated an "overweight" rating and issued a $249.00 price target on shares of Hershey in a report on Wednesday, February 25th. Finally, DA Davidson lowered their price target on Hershey from $230.00 to $208.00 and set a "neutral" rating for the company in a report on Monday, May 4th. Seven research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $217.78.

Hershey Stock Performance

NYSE HSY opened at $190.49 on Friday. The firm has a market capitalization of $38.64 billion, a P/E ratio of 35.47, a P/E/G ratio of 1.15 and a beta of 0.07. Hershey Company has a 1-year low of $150.04 and a 1-year high of $239.48. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.24 and a quick ratio of 0.77. The business's 50-day simple moving average is $200.06 and its 200-day simple moving average is $197.51.

Hershey (NYSE:HSY - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $2.35 earnings per share for the quarter, beating the consensus estimate of $2.04 by $0.31. The business had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.03 billion. Hershey had a return on equity of 28.98% and a net margin of 9.12%.The company's revenue was up 10.7% compared to the same quarter last year. During the same period in the previous year, the company posted $2.09 EPS. Equities analysts predict that Hershey Company will post 8.45 EPS for the current year.

Hershey Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 15th will be paid a $1.452 dividend. This represents a $5.81 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Friday, May 15th. Hershey's payout ratio is currently 108.19%.

Insider Activity

In other news, SVP Jason Reiman sold 2,000 shares of Hershey stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $226.07, for a total value of $452,140.00. Following the transaction, the senior vice president directly owned 41,036 shares of the company's stock, valued at $9,277,008.52. The trade was a 4.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Rohit Grover sold 3,500 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $226.07, for a total value of $791,245.00. Following the transaction, the insider directly owned 34,568 shares in the company, valued at $7,814,787.76. This trade represents a 9.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,500 shares of company stock valued at $1,859,600 in the last three months. Corporate insiders own 0.08% of the company's stock.

Hershey Company Profile

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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