Hershey (NYSE:HSY) Shares Break Above Fifty Day Moving Average Following Analyst Downgrade

Key Points

• Hershey shares rose 3.4% and moved above their 50-day moving average after HSBC raised its price target from $211 to $249 while maintaining a Buy rating.
• Analyst sentiment remains mixed overall: Hershey has an average Hold rating and a consensus price target of $193.81, with seven Buy, seventeen Hold, and one Sell rating.
• The company exceeded quarterly expectations, reporting $2.64 in earnings per share and $3.28 billion in revenue, while declaring a quarterly dividend of $1.452 per share, representing a 3.4% annualized yield.

Hershey Company (The) (NYSE:HSY - Get Free Report) passed above its 50 day moving average during trading on Monday after HSBC raised their price target on the stock from $211.00 to $249.00. The stock has a 50 day moving average of $169.38 and traded as high as $171.41. HSBC currently has a buy rating on the stock. Hershey shares last traded at $171.2440, with a volume of 1,997,510 shares changing hands.

A number of other research firms also recently weighed in on HSY. DA Davidson set a $190.00 price target on Hershey and gave the company a "neutral" rating in a research note on Friday, July 31st. BTIG Research began coverage on Hershey in a research report on Monday, April 13th. They set a "neutral" rating on the stock. TD Cowen dropped their price objective on Hershey from $210.00 to $198.00 and set a "buy" rating on the stock in a research note on Tuesday, October 13th. Jefferies Financial Group reiterated a "hold" rating and set a $178.00 price objective (down from $190.00) on shares of Hershey in a research note on Wednesday, October 14th. Finally, UBS Group reissued a "neutral" rating and issued a $198.00 price objective (up from $190.00) on shares of Hershey in a report on Tuesday, October 20th. Seven research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $193.81.

Institutional Investors Weigh In On Hershey

A number of institutional investors have recently made changes to their positions in HSY. GKV Capital Management Co. Inc. acquired a new position in Hershey in the 1st quarter valued at $27,000. Bell Investment Advisors Inc bought a new position in Hershey during the second quarter worth about $26,000. Frazier Financial Advisors LLC acquired a new stake in Hershey in the 2nd quarter worth about $33,000. Compass Wealth Management LLC acquired a new stake in Hershey in the 3rd quarter worth about $31,000. Finally, First Pacific Financial acquired a new stake in Hershey in the 2nd quarter worth about $35,000. Institutional investors own 57.96% of the company's stock.

Hershey Stock Up 3.4%

The company has a current ratio of 1.18, a quick ratio of 0.66 and a debt-to-equity ratio of 1.03. The firm has a market cap of $34.41 billion, a price-to-earnings ratio of 19.37, a PEG ratio of 1.37 and a beta of 0.10. The firm's 50 day simple moving average is $169.38 and its two-hundred day simple moving average is $188.91.

Hershey (NYSE:HSY - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $2.64 earnings per share for the quarter, beating analysts' consensus estimates of $2.11 by $0.53. Hershey had a net margin of 12.24% and a return on equity of 31.92%. The company had revenue of $3.28 billion during the quarter, compared to the consensus estimate of $3.25 billion. During the same period in the previous year, the business earned $1.30 earnings per share. The firm's quarterly revenue was up 3.0% on a year-over-year basis. On average, equities analysts forecast that Hershey Company will post 8.61 EPS for the current year.

Hershey Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 16th will be paid a $1.4520 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $5.81 annualized dividend and a yield of 3.4%. Hershey's dividend payout ratio is presently 65.72%.

About Hershey

The Hershey Company NYSE: HSY is a global confectionery and snack food manufacturer headquartered in Hershey, Pennsylvania. Founded by Milton S. Hershey in 1894, the company began as a chocolate producer and has grown into one of the largest branded snack businesses in North America.

Hershey's portfolio includes chocolate, non-chocolate confectionery, gum and mints, and salty snacks. Its brands include Hershey's, Reese's, Hershey's Kisses, Kit Kat in the United States under license from Nestlé, Jolly Rancher, Twizzlers, Ice Breakers, SkinnyPop and Dot's Pretzels.

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