PNC Financial Services Group Inc. Cuts Position in Hershey Company (The) (NYSE:HSY)

Key Points

• PNC Financial Services Group Inc. reduced its stake in Hershey Company by 11.3%, selling 37,596 shares and now holding 295,055 shares worth $50.46 million.
• Several other hedge funds increased their positions in Hershey, with notable increases from IFG Advisory LLC (by 86.3%) and Moors & Cabot Inc. (by 35.0%) during the same quarter.
• Hershey will pay a quarterly dividend of $1.37 per share on September 15th, representing a 2.9% dividend yield based on its current payout ratio of 72.78%.

PNC Financial Services Group Inc. decreased its holdings in shares of Hershey Company (The) (NYSE:HSY - Free Report) by 11.3% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 295,055 shares of the company's stock after selling 37,596 shares during the quarter. PNC Financial Services Group Inc. owned approximately 0.15% of Hershey worth $50,463,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Montag & Caldwell LLC acquired a new position in Hershey during the fourth quarter worth approximately $25,000. Putney Financial Group LLC acquired a new position in shares of Hershey in the fourth quarter valued at approximately $25,000. Mpwm Advisory Solutions LLC acquired a new position in shares of Hershey in the fourth quarter valued at approximately $28,000. Proffitt & Goodson Inc. acquired a new position in shares of Hershey in the first quarter valued at approximately $28,000. Finally, Tradewinds Capital Management LLC increased its holdings in shares of Hershey by 129.5% in the first quarter. Tradewinds Capital Management LLC now owns 179 shares of the company's stock valued at $31,000 after purchasing an additional 101 shares during the period. Hedge funds and other institutional investors own 57.96% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on HSY. Wall Street Zen raised Hershey from a "sell" rating to a "hold" rating in a report on Saturday. Royal Bank Of Canada decreased their price target on Hershey from $178.00 to $175.00 and set a "sector perform" rating on the stock in a research note on Friday, May 2nd. Sanford C. Bernstein lifted their price target on Hershey from $155.00 to $179.00 and gave the company a "market perform" rating in a research note on Thursday, July 31st. Barclays lifted their price target on Hershey from $165.00 to $190.00 and gave the company an "equal weight" rating in a research note on Friday. Finally, Mizuho lifted their price target on Hershey from $155.00 to $165.00 and gave the company a "neutral" rating in a research note on Monday, July 28th. Five analysts have rated the stock with a sell rating and sixteen have assigned a hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $169.68.

Hershey Price Performance

Shares of HSY traded down $1.45 during trading hours on Tuesday, reaching $188.96. 1,109,049 shares of the company traded hands, compared to its average volume of 1,995,665. The company has a quick ratio of 0.89, a current ratio of 1.53 and a debt-to-equity ratio of 1.15. The stock has a market capitalization of $38.28 billion, a PE ratio of 25.09, a price-to-earnings-growth ratio of 4.59 and a beta of 0.27. Hershey Company has a fifty-two week low of $140.13 and a fifty-two week high of $208.03. The stock has a fifty day simple moving average of $171.28 and a 200 day simple moving average of $166.56.

Hershey (NYSE:HSY - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $1.21 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.23. Hershey had a return on equity of 37.36% and a net margin of 13.54%. The firm had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.50 billion. During the same period in the prior year, the business posted $1.27 earnings per share. The firm's revenue for the quarter was up 26.0% compared to the same quarter last year. As a group, research analysts predict that Hershey Company will post 6.12 EPS for the current fiscal year.

Hershey Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 15th will be given a dividend of $1.37 per share. The ex-dividend date is Friday, August 15th. This represents a $5.48 annualized dividend and a yield of 2.9%. Hershey's dividend payout ratio is 72.78%.

Insider Activity

In related news, insider Rohit Grover sold 1,334 shares of the stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $180.00, for a total transaction of $240,120.00. Following the transaction, the insider directly owned 38,068 shares in the company, valued at approximately $6,852,240. This represents a 3.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Michele Buck sold 31,210 shares of the stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $160.80, for a total value of $5,018,568.00. Following the transaction, the chief executive officer owned 193,624 shares in the company, valued at $31,134,739.20. This trade represents a 13.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 118,311 shares of company stock valued at $20,931,348 in the last three months. Company insiders own 0.28% of the company's stock.

About Hershey

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.