Hershey (NYSE:HSY) Reaches New 52-Week Low Following Analyst Downgrade

The Hershey Company (NYSE:HSY) hit a new 52-week low during trading on Friday after Morgan Stanley lowered their price target on the stock from $245.00 to $186.00. Morgan Stanley currently has an equal weight rating on the stock. Hershey traded as low as $184.42 and last traded at $185.18, with a volume of 231132 shares changing hands. The stock had previously closed at $189.05.

A number of other equities research analysts have also recently issued reports on the company. Argus decreased their target price on Hershey from $315.00 to $270.00 and set a “buy” rating for the company in a research report on Friday, August 11th. HSBC started coverage on Hershey in a research report on Friday, September 22nd. They set a “buy” rating and a $248.00 target price for the company. Bank of America decreased their target price on Hershey from $300.00 to $250.00 and set a “buy” rating for the company in a research report on Tuesday, October 17th. TD Cowen cut Hershey from an “outperform” rating to a “market perform” rating and decreased their target price for the stock from $235.00 to $200.00 in a research report on Friday. Finally, Mizuho cut their price target on Hershey from $263.00 to $233.00 in a report on Monday, July 31st. Eleven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat, Hershey has an average rating of “Hold” and an average target price of $251.24.

Insider Activity at Hershey

In other Hershey news, CFO Steven E. Voskuil sold 1,500 shares of the stock in a transaction on Monday, October 23rd. The stock was sold at an average price of $190.55, for a total transaction of $285,825.00. Following the completion of the transaction, the chief financial officer now directly owns 34,316 shares in the company, valued at $6,538,913.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Hershey news, CFO Steven E. Voskuil sold 1,500 shares of Hershey stock in a transaction on Monday, October 23rd. The stock was sold at an average price of $190.55, for a total transaction of $285,825.00. Following the completion of the transaction, the chief financial officer now directly owns 34,316 shares of the company’s stock, valued at $6,538,913.80. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Pamela M. Arway sold 182 shares of Hershey stock in a transaction on Monday, October 9th. The shares were sold at an average price of $194.56, for a total value of $35,409.92. Following the transaction, the director now directly owns 15,562 shares of the company’s stock, valued at $3,027,742.72. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 4,682 shares of company stock worth $953,275. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Glass Jacobson Investment Advisors llc bought a new position in shares of Hershey in the second quarter valued at about $25,000. Institutional & Family Asset Management LLC bought a new position in shares of Hershey in the second quarter valued at about $25,000. Pinnacle Bancorp Inc. bought a new position in shares of Hershey in the third quarter valued at about $25,000. Arlington Partners LLC bought a new position in shares of Hershey in the first quarter valued at about $27,000. Finally, Zions Bancorporation N.A. raised its holdings in shares of Hershey by 121.3% in the first quarter. Zions Bancorporation N.A. now owns 135 shares of the company’s stock valued at $29,000 after buying an additional 74 shares during the last quarter. 56.47% of the stock is owned by institutional investors.

Hershey Price Performance

The stock has a fifty day moving average of $203.59 and a 200-day moving average of $235.45. The company has a quick ratio of 0.55, a current ratio of 1.06 and a debt-to-equity ratio of 1.11. The firm has a market capitalization of $37.64 billion, a P/E ratio of 21.19, a PEG ratio of 2.42 and a beta of 0.31.

Hershey (NYSE:HSY) last released its quarterly earnings results on Thursday, October 26th. The company reported $2.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.47 by $0.13. Hershey had a return on equity of 55.74% and a net margin of 16.49%. The business had revenue of $3.03 billion during the quarter, compared to analysts’ expectations of $2.95 billion. During the same period in the previous year, the business posted $2.17 earnings per share. The firm’s revenue for the quarter was up 11.1% compared to the same quarter last year. Equities analysts predict that The Hershey Company will post 9.53 EPS for the current fiscal year.

Hershey Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 15th. Investors of record on Friday, November 17th will be given a $1.192 dividend. The ex-dividend date is Thursday, November 16th. This represents a $4.77 dividend on an annualized basis and a yield of 2.59%. Hershey’s payout ratio is 54.78%.

About Hershey

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; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, bars, snack bites, mixes, popcorn, and pretzels.