Hershey (NYSE:HSY) Downgraded by Zacks Research to “Hold”

Zacks Research lowered shares of Hershey (NYSE:HSY) from a strong-buy rating to a hold rating in a research report sent to investors on Tuesday morning,Zacks.com reports.

Several other research firms have also commented on HSY. Piper Sandler reaffirmed an “overweight” rating and set a $249.00 price target on shares of Hershey in a research report on Wednesday, February 25th. Barclays upped their price target on shares of Hershey from $210.00 to $240.00 and gave the company an “equal weight” rating in a research report on Friday, February 6th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $267.00 price target on shares of Hershey in a research report on Friday, February 6th. Morgan Stanley upped their price target on shares of Hershey from $238.00 to $247.00 and gave the company an “overweight” rating in a research report on Monday, March 16th. Finally, UBS Group reduced their price target on shares of Hershey from $236.00 to $215.00 and set a “neutral” rating for the company in a research report on Wednesday, April 1st. Six equities research analysts have rated the stock with a Buy rating and seventeen have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $222.21.

Hershey Price Performance

HSY opened at $208.82 on Tuesday. The company has a debt-to-equity ratio of 1.01, a quick ratio of 0.72 and a current ratio of 1.19. The stock has a market capitalization of $42.33 billion, a P/E ratio of 48.12, a P/E/G ratio of 1.25 and a beta of 0.18. The company’s 50-day simple moving average is $217.78 and its two-hundred day simple moving average is $196.47. Hershey has a 52-week low of $150.04 and a 52-week high of $239.48.

Hershey (NYSE:HSY) last posted its earnings results on Thursday, February 5th. The company reported $1.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.31. Hershey had a net margin of 7.55% and a return on equity of 27.90%. The business had revenue of $3.09 billion for the quarter, compared to analysts’ expectations of $2.97 billion. During the same quarter in the prior year, the business earned $2.69 EPS. The business’s revenue for the quarter was up 7.0% compared to the same quarter last year. Hershey has set its FY 2026 guidance at 8.200-8.520 EPS. As a group, analysts predict that Hershey will post 6.12 EPS for the current year.

Hershey Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Tuesday, February 17th were issued a $1.452 dividend. The ex-dividend date of this dividend was Tuesday, February 17th. This represents a $5.81 annualized dividend and a yield of 2.8%. This is a positive change from Hershey’s previous quarterly dividend of $1.37. Hershey’s payout ratio is currently 133.87%.

Insider Buying and Selling

In related news, insider Rohit Grover sold 3,500 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $226.07, for a total value of $791,245.00. Following the completion of the sale, the insider directly owned 34,568 shares of the company’s stock, valued at approximately $7,814,787.76. This represents a 9.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Steven E. Voskuil sold 1,500 shares of the stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $216.71, for a total transaction of $325,065.00. Following the completion of the sale, the chief financial officer directly owned 59,869 shares of the company’s stock, valued at $12,974,210.99. This represents a 2.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 10,000 shares of company stock valued at $2,195,945. 0.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hershey

A number of institutional investors have recently added to or reduced their stakes in the stock. Syon Capital LLC grew its holdings in Hershey by 1.5% during the 4th quarter. Syon Capital LLC now owns 3,020 shares of the company’s stock valued at $550,000 after buying an additional 46 shares in the last quarter. Haverford Trust Co grew its holdings in Hershey by 0.7% during the 4th quarter. Haverford Trust Co now owns 6,796 shares of the company’s stock valued at $1,237,000 after buying an additional 46 shares in the last quarter. Larson Financial Group LLC grew its holdings in Hershey by 2.0% during the 4th quarter. Larson Financial Group LLC now owns 2,561 shares of the company’s stock valued at $466,000 after buying an additional 50 shares in the last quarter. Venture Visionary Partners LLC grew its holdings in Hershey by 0.7% during the 4th quarter. Venture Visionary Partners LLC now owns 8,034 shares of the company’s stock valued at $1,462,000 after buying an additional 53 shares in the last quarter. Finally, ARS Wealth Advisors Group LLC grew its holdings in Hershey by 1.8% during the 4th quarter. ARS Wealth Advisors Group LLC now owns 3,070 shares of the company’s stock valued at $559,000 after buying an additional 54 shares in the last quarter. 57.96% of the stock is owned by hedge funds and other institutional investors.

About Hershey

The Hershey Company (NYSE: HSY) is a leading North American chocolatier and snack manufacturer headquartered in Hershey, Pennsylvania. The company develops, produces and markets a wide range of confectionery and snack products for retail, foodservice and international customers. Hershey’s business spans manufacturing, branded product marketing, packaging and distribution across grocery, convenience, mass merchant and e-commerce channels.

Hershey’s product portfolio centers on chocolate and sugar confectionery, including core brands such as Hershey’s, Reese’s, Hershey’s Kisses and Twizzlers, alongside non-chocolate snacks and confectionery brands.