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 stronger than expected earnings report. 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.

The company reported $2.69 earnings per share for the quarter, beating analysts’ consensus estimates 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 company also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Monday, February 17th will be paid a $1.37 dividend. This represents a $5.48 dividend on an annualized basis and a yield of 3.60%. Hershey’s dividend payout ratio is presently 63.13%.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on HSY. Piper Sandler cut Hershey from a “neutral” rating to an “underweight” rating and cut their price objective for the stock from $153.00 to $120.00 in a report on Friday, January 31st. Wells Fargo & Company cut their target price on Hershey from $150.00 to $140.00 and set an “underweight” rating for the company in a research note on Friday, January 17th. Stifel Nicolaus decreased their price target on shares of Hershey from $180.00 to $170.00 and set a “hold” rating on the stock in a research note on Friday, January 24th. Bernstein Bank cut their price objective on shares of Hershey from $177.00 to $146.00 and set a “market perform” rating for the company in a research note on Wednesday. Finally, Deutsche Bank Aktiengesellschaft lowered their price target on shares of Hershey from $184.00 to $148.00 and set a “hold” rating for the company in a research note on Thursday, January 23rd. Seven analysts have rated the stock with a sell rating and fourteen have given a hold rating to the company’s stock. According to MarketBeat.com, Hershey presently has a consensus rating of “Hold” and a consensus target price of $167.10.

Insider Activity at Hershey

In related news, CAO Jennifer Mccalman sold 278 shares of the business’s stock in a transaction dated Monday, February 3rd. The shares were sold at an average price of $148.00, for a total transaction of $41,144.00. Following the transaction, the chief accounting officer now owns 2,682 shares in the company, valued at $396,936. The trade was a 9.39 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.29% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of HSY. Ashton Thomas Securities LLC purchased a new stake in Hershey during the 3rd quarter valued at about $25,000. Grove Bank & Trust grew its holdings in shares of Hershey by 248.0% during the fourth quarter. Grove Bank & Trust now owns 174 shares of the company’s stock valued at $29,000 after buying an additional 124 shares during the last quarter. Vision Financial Markets LLC bought a new stake in shares of Hershey during the fourth quarter valued at approximately $29,000. ST Germain D J Co. Inc. increased its position in shares of Hershey by 61.7% during the fourth quarter. ST Germain D J Co. Inc. now owns 262 shares of the company’s stock valued at $44,000 after acquiring an additional 100 shares in the last quarter. Finally, Peterson Financial Group Inc. purchased a new position in Hershey in the 3rd quarter worth approximately $46,000. 57.96% of the stock is currently owned by institutional investors.

Hershey Price Performance

The firm has a market capitalization of $30.84 billion, a P/E ratio of 17.56, a PEG ratio of 4.30 and a beta of 0.38. The firm has a 50-day moving average of $165.24 and a 200-day moving average of $180.97. The company has a debt-to-equity ratio of 0.76, a quick ratio of 0.54 and a current ratio of 0.85.

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; 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.