Hershey Company (The) $HSY Shares Sold by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital cut its Hershey stake by 56.1% in the first quarter, selling 63,158 shares and retaining 49,429 shares valued at approximately $10.3 million. Institutional investors collectively own 57.96% of the company.
• Hershey reported strong second-quarter results, with revenue rising 6.6% to $2.79 billion and adjusted EPS reaching $1.90, well above analysts’ expectations. Management also raised the lower end of its 2026 outlook, projecting EPS of $8.36 to $8.52.
• Despite the earnings beat, volumes declined about 8% as prices rose 12%, raising concerns about consumer demand amid elevated cocoa costs and a cautious spending environment. Analysts maintain a consensus “Hold” rating, with an average price target of $204.06.

Arrowstreet Capital Limited Partnership lowered its stake in shares of Hershey Company (The) (NYSE:HSY - Free Report) by 56.1% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 49,429 shares of the company's stock after selling 63,158 shares during the period. Arrowstreet Capital Limited Partnership's holdings in Hershey were worth $10,276,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Hershey by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 19,067,235 shares of the company's stock valued at $3,469,855,000 after purchasing an additional 191,671 shares in the last quarter. Capital International Investors lifted its position in Hershey by 1.9% during the fourth quarter. Capital International Investors now owns 9,106,431 shares of the company's stock valued at $1,657,189,000 after buying an additional 169,660 shares in the last quarter. State Street Corp lifted its position in Hershey by 1.8% during the third quarter. State Street Corp now owns 7,253,041 shares of the company's stock valued at $1,356,681,000 after buying an additional 128,982 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in Hershey by 2.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 5,315,653 shares of the company's stock worth $967,343,000 after buying an additional 124,464 shares during the period. Finally, Geode Capital Management LLC increased its position in shares of Hershey by 2.2% in the fourth quarter. Geode Capital Management LLC now owns 4,831,101 shares of the company's stock worth $876,434,000 after acquiring an additional 104,024 shares in the last quarter. Institutional investors and hedge funds own 57.96% of the company's stock.

Key Stories Impacting Hershey

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Hershey reported second-quarter revenue of $2.79 billion, up 6.6% year over year and ahead of the $2.63 billion consensus estimate. Adjusted EPS of $1.90 exceeded expectations of $1.43 and rose sharply from $1.21 a year earlier, helped by pricing, margin recovery and supply-chain improvements. Hershey Reports Second-Quarter 2026 Financial Results
• Positive Sentiment: Management tightened its 2026 outlook and raised the lower end of its expectations, forecasting revenue of approximately $12.2 billion to $12.3 billion and EPS of $8.36 to $8.52. Stronger salty-snack sales, including LesserEvil, and steady demand for Reese’s and Dot’s Pretzels supported the improved outlook. Hershey Reports Higher Q2 Sales and Earnings
• Positive Sentiment: The board maintained Hershey’s quarterly dividend at $1.452 per common share, supporting an annualized yield of roughly 3.3% at the recent share price. Hershey Declares Quarterly Dividends
• Neutral Sentiment: JPMorgan raised its price target from $191 to $193 but retained a Neutral rating, implying limited conviction despite potential upside from current levels. Brokerages overall continue to carry a consensus “Hold” recommendation.
• Negative Sentiment: Growth was driven largely by a reported 12% increase in prices, while volumes fell approximately 8%. Investors are concerned that continued pricing could weaken consumer demand and limit future growth, particularly in North American confectionery. Hershey Stock Drops as Earnings Beat Overshadows Volume Slide
• Negative Sentiment: Cocoa-cost volatility, supply-chain challenges in salty snacks and a cautious consumer environment remain risks. The company’s valuation also remains elevated relative to its recent earnings profile, increasing sensitivity to signs of weakening demand.

Insider Buying and Selling

In other Hershey news, CFO Steven E. Voskuil sold 1,500 shares of the company's stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $170.00, for a total value of $255,000.00. Following the completion of the sale, the chief financial officer directly owned 53,195 shares of the company's stock, valued at approximately $9,043,150. This represents a 2.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.08% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently weighed in on HSY. The Goldman Sachs Group set a $240.00 price target on shares of Hershey in a research report on Friday, May 1st. Jefferies Financial Group set a $190.00 target price on Hershey in a research note on Thursday, July 16th. Mizuho decreased their price target on Hershey from $195.00 to $185.00 and set a "neutral" rating for the company in a report on Wednesday, May 20th. Bank of America lowered their price objective on shares of Hershey from $220.00 to $200.00 and set a "neutral" rating for the company in a research report on Thursday, June 25th. Finally, Piper Sandler reduced their target price on shares of Hershey from $249.00 to $200.00 and set an "overweight" rating on the stock in a research report on Thursday, July 9th. Seven analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. According to data from MarketBeat.com, Hershey has a consensus rating of "Hold" and an average price target of $204.06.

Hershey Stock Down 1.0%

HSY opened at $175.46 on Friday. Hershey Company has a 12 month low of $161.43 and a 12 month high of $239.48. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.18 and a quick ratio of 0.77. The stock has a market cap of $35.59 billion, a P/E ratio of 23.97, a P/E/G ratio of 1.10 and a beta of 0.11. The stock's 50 day moving average price is $179.16 and its 200 day moving average price is $196.70.

Hershey (NYSE:HSY - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.90 earnings per share for the quarter, beating analysts' consensus estimates of $1.43 by $0.47. The business had revenue of $2.79 billion for the quarter, compared to analysts' expectations of $2.63 billion. Hershey had a net margin of 12.24% and a return on equity of 31.92%. The company's revenue was up 6.6% on a year-over-year basis. During the same period in the previous year, the business earned $1.21 earnings per share. Hershey has set its FY 2026 guidance at 8.360-8.520 EPS. As a group, research analysts predict that Hershey Company will post 8.42 earnings per share for the current year.

Hershey Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be given a $1.452 dividend. The ex-dividend date is Friday, August 14th. This represents a $5.81 annualized dividend and a yield of 3.3%. Hershey's payout ratio is 79.23%.

Hershey 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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