Stifel Nicolaus Forecasts Strong Price Appreciation for Hershey (NYSE:HSY) Stock

Key Points

• Stifel Nicolaus has raised its price target for Hershey (NYSE:HSY) from $160.00 to $180.00, maintaining a "hold" rating, indicating a potential downside of 2.32% from the current price.
• Despite the increase in price target, other analysts have downgraded their ratings, with six rating the stock as a "sell" and a consensus rating of "hold" with a target of $161.74.
• Hershey recently reported earnings of $2.09 per share, exceeding the consensus estimate of $1.94, although revenue was down 13.8% compared to the previous year.

Hershey (NYSE:HSY - Get Free Report) had its price objective upped by analysts at Stifel Nicolaus from $160.00 to $180.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage currently has a "hold" rating on the stock. Stifel Nicolaus' price target indicates a potential downside of 4.61% from the company's previous close.

Several other equities analysts have also recently commented on HSY. Citigroup lowered their target price on shares of Hershey from $173.00 to $165.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 15th. UBS Group reduced their price objective on shares of Hershey from $175.00 to $170.00 and set a "neutral" rating for the company in a research report on Friday, May 2nd. Wall Street Zen lowered shares of Hershey from a "hold" rating to a "sell" rating in a research report on Sunday, July 6th. Piper Sandler raised their price objective on shares of Hershey from $120.00 to $145.00 and gave the company an "underweight" rating in a research report on Wednesday, July 23rd. Finally, Morgan Stanley reduced their price objective on shares of Hershey from $183.00 to $177.00 and set an "equal weight" rating for the company in a research report on Thursday, April 17th. Six investment analysts have rated the stock with a sell rating and fifteen have issued a hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $168.37.

Hershey Price Performance

Hershey stock traded up $2.57 during trading hours on Tuesday, hitting $188.70. 2,072,840 shares of the company traded hands, compared to its average volume of 1,879,591. The firm has a market cap of $38.23 billion, a P/E ratio of 25.06, a P/E/G ratio of 4.56 and a beta of 0.30. The company has a quick ratio of 1.11, a current ratio of 1.53 and a debt-to-equity ratio of 1.15. The firm's 50-day simple moving average is $169.92 and its two-hundred day simple moving average is $165.88. Hershey has a 1-year low of $140.13 and a 1-year high of $208.03.

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

Insider Buying and Selling at Hershey

In related news, SVP James Turoff sold 1,300 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $175.00, for a total transaction of $227,500.00. Following the completion of the sale, the senior vice president directly owned 25,321 shares in the company, valued at approximately $4,431,175. This trade represents a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Steven E. Voskuil sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $180.00, for a total transaction of $900,000.00. Following the transaction, the chief financial officer directly owned 61,319 shares in the company, valued at approximately $11,037,420. The trade was a 7.54% decrease in their position. 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 90 days. Corporate insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On Hershey

Several hedge funds and other institutional investors have recently added to or reduced their stakes in HSY. Norges Bank bought a new position in shares of Hershey in the fourth quarter valued at approximately $5,618,000. Brown Brothers Harriman & Co. raised its position in shares of Hershey by 51.4% in the fourth quarter. Brown Brothers Harriman & Co. now owns 710 shares of the company's stock valued at $120,000 after purchasing an additional 241 shares during the period. Allstate Corp bought a new position in shares of Hershey in the fourth quarter valued at approximately $757,000. Alliancebernstein L.P. increased its position in Hershey by 55.7% during the fourth quarter. Alliancebernstein L.P. now owns 264,267 shares of the company's stock worth $44,754,000 after acquiring an additional 94,539 shares during the period. Finally, Franklin Resources Inc. increased its position in Hershey by 19.5% during the fourth quarter. Franklin Resources Inc. now owns 260,554 shares of the company's stock worth $44,125,000 after acquiring an additional 42,499 shares during the period. Institutional investors own 57.96% of the company's stock.

Hershey Company Profile

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.