Hershey (NYSE:HSY) Shares Gap Up on Analyst Upgrade

Key Points

• Hershey's stock gapped up sharply, opening at $192.48 after an upgrade from Goldman Sachs, which raised its price target from $170.00 to $222.00.
• Insiders have recently sold a significant amount of stock, with CEO Michele Buck selling 19,290 shares worth $3.74 million, indicating a 9.06% decrease in their ownership.
• The company reported a 26% year-over-year revenue increase with earnings of $1.21 EPS, exceeding expectations and setting guidance for FY 2025 at 5.809-5.997 EPS.

Shares of Hershey Company (The) (NYSE:HSY - Get Free Report) gapped up before the market opened on Tuesday after The Goldman Sachs Group upgraded the stock from a sell rating to a buy rating. The stock had previously closed at $185.56, but opened at $192.48. The Goldman Sachs Group now has a $222.00 price target on the stock, up from their previous price target of $170.00. Hershey shares last traded at $188.88, with a volume of 430,820 shares.

Other equities analysts have also issued reports about the company. DA Davidson upped their target price on Hershey from $171.00 to $188.00 and gave the company a "neutral" rating in a report on Monday, August 4th. BNP Paribas Exane raised Hershey from a "neutral" rating to an "outperform" rating in a report on Monday. JPMorgan Chase & Co. started coverage on Hershey in a report on Wednesday, August 20th. They issued a "neutral" rating and a $187.00 target price for the company. Mizuho upped their target price on Hershey from $155.00 to $165.00 and gave the company a "neutral" rating in a report on Monday, July 28th. Finally, Barclays upped their target price on Hershey from $165.00 to $190.00 and gave the company an "equal weight" rating in a report on Friday, August 1st. Two equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $173.89.

Insider Buying and Selling

In other Hershey news, insider Rohit Grover sold 1,334 shares of the stock in a transaction on Monday, July 21st. The stock was sold at an average price of $180.00, for a total transaction of $240,120.00. Following the sale, the insider owned 38,068 shares in the company, valued at $6,852,240. This represents a 3.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Michele Buck sold 19,290 shares of the stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $194.00, for a total value of $3,742,260.00. Following the sale, the chief executive officer owned 193,624 shares in the company, valued at approximately $37,563,056. This represents a 9.06% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 86,127 shares of company stock worth $15,759,755. Insiders own 0.28% of the company's stock.

Institutional Investors Weigh In On Hershey

A number of large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Hershey by 1.1% during the second quarter. Vanguard Group Inc. now owns 18,840,577 shares of the company's stock valued at $3,126,594,000 after purchasing an additional 210,131 shares in the last quarter. Charles Schwab Investment Management Inc. raised its position in Hershey by 2.5% during the second quarter. Charles Schwab Investment Management Inc. now owns 5,116,739 shares of the company's stock valued at $849,123,000 after purchasing an additional 125,100 shares in the last quarter. Geode Capital Management LLC raised its position in Hershey by 2.8% during the second quarter. Geode Capital Management LLC now owns 4,567,373 shares of the company's stock valued at $755,305,000 after purchasing an additional 126,519 shares in the last quarter. JPMorgan Chase & Co. raised its position in Hershey by 4.6% during the second quarter. JPMorgan Chase & Co. now owns 3,276,326 shares of the company's stock valued at $543,712,000 after purchasing an additional 144,640 shares in the last quarter. Finally, Royal Bank of Canada raised its position in Hershey by 25.4% during the first quarter. Royal Bank of Canada now owns 2,753,077 shares of the company's stock valued at $470,858,000 after purchasing an additional 557,056 shares in the last quarter. Hedge funds and other institutional investors own 57.96% of the company's stock.

Hershey Stock Performance

The stock has a market cap of $38.39 billion, a PE ratio of 25.15, a P/E/G ratio of 4.47 and a beta of 0.27. The company has a fifty day moving average price of $180.55 and a 200 day moving average price of $171.79. The company has a quick ratio of 0.89, a current ratio of 1.53 and a debt-to-equity ratio of 1.15.

Hershey (NYSE:HSY - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $1.21 EPS for the quarter, topping the consensus estimate of $0.98 by $0.23. The firm had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.50 billion. Hershey had a return on equity of 37.36% and a net margin of 13.54%.The company's quarterly revenue was up 26.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.27 earnings per share. Hershey has set its FY 2025 guidance at 5.809-5.997 EPS. Analysts expect that Hershey Company will post 6.12 earnings per share for the current year.

Hershey Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Friday, August 15th were paid a $1.37 dividend. The ex-dividend date of this dividend was Friday, August 15th. This represents a $5.48 annualized dividend and a dividend yield of 2.9%. Hershey's dividend payout ratio (DPR) is presently 72.78%.

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.

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