Hershey (NYSE:HSY) Shares Gap Up on Better-Than-Expected Earnings

The Hershey Company (NYSE:HSY) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $145.92, but opened at $155.25. Hershey shares last traded at $151.53, with a volume of 504,672 shares trading hands.

The company reported $2.69 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.29. Hershey had a net margin of 16.17% and a return on equity of 43.24%.

Hershey Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Monday, February 17th will be given a $1.37 dividend. This represents a $5.48 dividend on an annualized basis and a yield of 3.54%. The ex-dividend date of this dividend is Friday, February 14th. Hershey’s payout ratio is 63.13%.

Analysts Set New Price Targets

HSY has been the subject of a number of recent research reports. JPMorgan Chase & Co. cut their price objective on Hershey from $171.00 to $151.00 and set a “neutral” rating for the company in a research note on Thursday, January 16th. Mizuho reduced their price objective on shares of Hershey from $170.00 to $140.00 in a research note on Wednesday. Stifel Nicolaus lowered their target price on shares of Hershey from $170.00 to $160.00 and set a “hold” rating on the stock in a research note on Friday. Piper Sandler downgraded shares of Hershey from a “neutral” rating to an “underweight” rating and dropped their target price for the stock from $153.00 to $120.00 in a report on Friday, January 31st. Finally, Bernstein Bank decreased their price target on Hershey from $177.00 to $146.00 and set a “market perform” rating on the stock in a report on Wednesday. Six research analysts have rated the stock with a sell rating and fifteen have given a hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $166.35.

Insider Buying and Selling at Hershey

In other news, CAO Jennifer Mccalman sold 278 shares of the firm’s stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $148.00, for a total value of $41,144.00. Following the completion of the sale, the chief accounting officer now directly owns 2,682 shares of the company’s stock, valued at $396,936. This trade represents a 9.39 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.29% of the stock is owned by company insiders.

Institutional Trading of Hershey

Several hedge funds and other institutional investors have recently bought and sold shares of HSY. B. Metzler seel. Sohn & Co. Holding AG bought a new stake in shares of Hershey in the 3rd quarter worth about $1,337,000. Principal Financial Group Inc. raised its position in Hershey by 66.7% in the 3rd quarter. Principal Financial Group Inc. now owns 972,836 shares of the company’s stock worth $186,571,000 after purchasing an additional 389,404 shares during the period. Woodstock Corp lifted its stake in Hershey by 34.8% in the fourth quarter. Woodstock Corp now owns 6,896 shares of the company’s stock worth $1,168,000 after purchasing an additional 1,780 shares during the last quarter. HighTower Advisors LLC boosted its position in shares of Hershey by 61.9% during the third quarter. HighTower Advisors LLC now owns 120,159 shares of the company’s stock valued at $23,052,000 after buying an additional 45,936 shares during the period. Finally, Pensionfund Sabic grew its stake in shares of Hershey by 55.6% during the fourth quarter. Pensionfund Sabic now owns 8,400 shares of the company’s stock valued at $1,423,000 after buying an additional 3,000 shares during 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 capitalization of $31.36 billion, a PE ratio of 17.85, a P/E/G ratio of 4.30 and a beta of 0.38. The firm has a fifty day moving average price of $164.81 and a two-hundred day moving average price of $180.78. The company has a debt-to-equity ratio of 0.76, a current ratio of 0.85 and a quick ratio of 0.54.

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.