Hershey Trust Co. Has $376 Million Stock Position in Hershey Company (The) $HSY

Key Points

• Hershey Trust Co. sharply reduced its stake in Hershey by 96.4% in the fourth quarter, but it still held 2.07 million shares valued at about $376 million. Hershey remains its second-largest holding.
• Hershey reported better-than-expected quarterly results, with EPS of $2.35 versus estimates of $2.04 and revenue of $3.10 billion, up 10.7% year over year. Analysts now expect full-year EPS of 8.45.
• The company also announced a quarterly dividend of $1.452 per share, implying an annualized yield of about 3.2%. Meanwhile, analysts broadly remain cautious, with a consensus rating of Hold and a target price of $218.06.

Hershey Trust Co. cut its stake in Hershey Company (The) (NYSE:HSY - Free Report) by 96.4% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,066,133 shares of the company's stock after selling 54,612,098 shares during the quarter. Hershey accounts for 3.6% of Hershey Trust Co.'s holdings, making the stock its 2nd biggest position. Hershey Trust Co. owned 1.02% of Hershey worth $375,995,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds also recently modified their holdings of the company. Friedenthal Financial increased its stake in shares of Hershey by 38,266.7% in the 4th quarter. Friedenthal Financial now owns 5,755 shares of the company's stock valued at $1,047,000 after acquiring an additional 5,740 shares during the last quarter. Ashton Thomas Private Wealth LLC grew its position in shares of Hershey by 166.8% in the 3rd quarter. Ashton Thomas Private Wealth LLC now owns 39,200 shares of the company's stock valued at $7,332,000 after purchasing an additional 24,509 shares during the period. Oppenheimer & Co. Inc. grew its position in shares of Hershey by 9.4% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 60,978 shares of the company's stock valued at $11,406,000 after purchasing an additional 5,239 shares during the period. Nordea Investment Management AB grew its position in shares of Hershey by 833.3% in the 4th quarter. Nordea Investment Management AB now owns 185,314 shares of the company's stock valued at $33,940,000 after purchasing an additional 165,458 shares during the period. Finally, US Bancorp DE grew its position in shares of Hershey by 1.5% in the 3rd quarter. US Bancorp DE now owns 408,295 shares of the company's stock valued at $76,372,000 after purchasing an additional 6,029 shares during the period. 57.96% of the stock is owned by institutional investors.

Hershey Trading Down 0.6%

Shares of Hershey stock opened at $182.99 on Thursday. Hershey Company has a 12-month low of $160.07 and a 12-month high of $239.48. The stock has a market cap of $37.12 billion, a P/E ratio of 34.08, a P/E/G ratio of 1.10 and a beta of 0.09. The company has a quick ratio of 0.77, a current ratio of 1.24 and a debt-to-equity ratio of 0.99. The business's 50 day moving average is $195.80 and its 200-day moving average is $198.83.

Hershey (NYSE:HSY - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $2.35 earnings per share (EPS) for the quarter, topping 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 company 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 business posted $2.09 EPS. The business's revenue was up 10.7% compared to the same quarter last year. Equities research analysts predict that Hershey Company will post 8.45 earnings per share for the current fiscal year.

Hershey Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 15th will be paid a $1.452 dividend. This represents a $5.81 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Friday, May 15th. Hershey's dividend payout ratio is 108.19%.

Analysts Set New Price Targets

Several brokerages recently issued reports on HSY. TD Cowen upgraded Hershey from a "hold" rating to a "buy" rating and set a $210.00 price objective for the company in a research report on Friday, May 1st. JPMorgan Chase & Co. decreased their price objective on Hershey from $211.00 to $204.00 and set a "neutral" rating for the company in a research report on Friday, May 1st. Zacks Research lowered Hershey from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 7th. Stephens boosted their price objective on Hershey from $200.00 to $260.00 and gave the company an "overweight" rating in a research report on Thursday, February 12th. Finally, Barclays decreased their price objective on Hershey from $225.00 to $220.00 and set an "equal weight" rating for the company in a research report on Monday, May 4th. Seven equities research analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $218.06.

Insiders Place Their Bets

In related news, CFO Steven E. Voskuil sold 1,500 shares of the stock in a transaction on Monday, April 20th. The stock was sold at an average price of $194.10, for a total value of $291,150.00. Following the sale, the chief financial officer owned 57,695 shares in the company, valued at approximately $11,198,599.50. This represents a 2.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.08% of the company's stock.

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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