Principal Financial Group Inc. Lowers Stock Position in Hershey Company (The) $HSY

Key Points

• Principal Financial Group sharply reduced its Hershey stake by 66% in the fourth quarter, selling 448,406 shares and leaving it with 231,142 shares worth about $42.1 million.
• Hershey reported better-than-expected quarterly results, with EPS of $2.35 versus $2.04 expected and revenue of $3.10 billion, up 10.7% from a year earlier.
• The company announced a quarterly dividend of $1.452 per share, equivalent to $5.81 annually and a 3.1% yield, while analysts currently rate the stock a consensus Hold with a $218.33 target price.

Principal Financial Group Inc. cut its position in shares of Hershey Company (The) (NYSE:HSY - Free Report) by 66.0% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 231,142 shares of the company's stock after selling 448,406 shares during the period. Principal Financial Group Inc. owned 0.11% of Hershey worth $42,064,000 as of its most recent filing with the SEC.

Other hedge funds have also recently added to or reduced their stakes in the company. JPL Wealth Management LLC acquired a new position in Hershey during the third quarter worth $26,000. Laurel Wealth Advisors LLC acquired a new position in Hershey during the fourth quarter worth $27,000. Measured Wealth Private Client Group LLC acquired a new position in Hershey during the third quarter worth $35,000. Atlantic Edge Private Wealth Management LLC acquired a new position in Hershey during the fourth quarter worth $42,000. Finally, Close Asset Management Ltd raised its position in Hershey by 339.3% during the third quarter. Close Asset Management Ltd now owns 246 shares of the company's stock worth $46,000 after acquiring an additional 190 shares during the period. 57.96% of the stock is owned by hedge funds and other institutional investors.

Hershey Price Performance

Shares of NYSE HSY opened at $185.83 on Friday. The firm has a 50-day simple moving average of $207.82 and a 200-day simple moving average of $196.73. The stock has a market capitalization of $37.67 billion, a price-to-earnings ratio of 34.61, a price-to-earnings-growth ratio of 1.12 and a beta of 0.07. The company has a quick ratio of 0.77, a current ratio of 1.24 and a debt-to-equity ratio of 0.99. Hershey Company has a 52 week low of $150.04 and a 52 week high of $239.48.

Hershey (NYSE:HSY - Get Free Report) last issued 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. The business had revenue of $3.10 billion during the quarter, compared to analysts' expectations of $3.03 billion. Hershey had a net margin of 9.12% and a return on equity of 28.98%. The company's quarterly revenue was up 10.7% compared to the same quarter last year. During the same period in the prior year, the business earned $2.09 earnings per share. On average, equities analysts predict that Hershey Company will post 8.45 earnings per share for the current fiscal year.

Hershey Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 15th will be given a $1.452 dividend. This represents a $5.81 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Friday, May 15th. Hershey's dividend payout ratio is 108.19%.

Insider Activity

In related news, SVP Jason Reiman sold 2,000 shares of the company's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $226.07, for a total value of $452,140.00. Following the completion of the sale, the senior vice president owned 41,036 shares of the company's stock, valued at approximately $9,277,008.52. This represents a 4.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Rohit Grover sold 3,500 shares of the company's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $226.07, for a total transaction of $791,245.00. Following the completion of the sale, the insider directly owned 34,568 shares of the company's stock, valued at $7,814,787.76. This represents a 9.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 10,000 shares of company stock worth $2,189,090 over the last three months. Insiders own 0.08% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on HSY shares. Stephens upped their price objective on shares of Hershey from $200.00 to $260.00 and gave the stock an "overweight" rating in a research report on Thursday, February 12th. Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Hershey from $212.00 to $200.00 and set a "hold" rating for the company in a research report on Monday, March 30th. Zacks Research cut shares of Hershey from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 7th. DA Davidson reduced their price objective on shares of Hershey from $230.00 to $208.00 and set a "neutral" rating for the company in a research report on Monday, May 4th. Finally, Mizuho upped their price objective on shares of Hershey from $165.00 to $195.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 24th. Seven equities research analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company. Based on data from MarketBeat, Hershey currently has a consensus rating of "Hold" and a consensus target price of $218.33.

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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