Analysts Set $187.32 Target, Goldman Sachs Raises Hershey to Buy; Q3 Stake Cut
Twenty-two analysts rate Hershey at an average “Hold” with a consensus 1-year price target of $187.32; Goldman Sachs upgraded to Buy and raised its target from $170 to $222. Commonwealth Equity Services trimmed its Hershey stake by 10.7% in Q3, selling 9,076 shares to leave 75,862 shares valued at $14.19M.
1. Analyst Consensus and Target Revisions
HSY has attracted coverage from 22 brokerages, with 17 issuing hold recommendations and 5 assigning buy ratings. The consensus 12-month price target stands at $187.32. Notable upgrades include Goldman Sachs raising HSY from sell to buy and lifting its target from $170 to $222 on September 16, while BNP Paribas Exane upgraded to outperform on September 15. Stifel Nicolaus and Bank of America have each raised their targets, to $195 and $210 respectively, over the past quarter. UBS trimmed its target to $190 on October 31, underscoring a mixed outlook among major research houses.
2. Q3 Financial Performance and 2025 Guidance
In the quarter ended October 30, HSY reported revenue of $3.18 billion, up 6.5% year-over-year and beating the $3.11 billion consensus by $70 million. Adjusted EPS came in at $1.30, topping estimates by $0.24. The company delivered an 11.84% net margin and a 32.08% return on equity. Management set full-year 2025 EPS guidance at a range of $5.90–$6.00, compared with the $6.12 average forecast among analysts, reflecting confidence in continued organic growth and cost discipline.
3. Dividend Policy and Insider Activity
HSY declared a quarterly dividend of $1.37 per share, paid December 15 to shareholders of record as of November 17, representing a $5.48 annualized payout and a 2.9% yield. The dividend payout ratio stands at 81.9%. Insider transactions over the past quarter include CFO Steven Voskuil selling 1,500 shares at an average price of $188.51, reducing his stake by 2.7%, and CEO Kirk Tanner purchasing 2,000 shares at $185.46, increasing his ownership by 4.4%. Insiders collectively sold 6,000 shares valued at $1.1 million, while retaining 0.34% of total shares outstanding.
4. Institutional Ownership Trends
Large institutions continue to adjust HSY holdings. Norges Bank initiated a new position valued at $234 million in Q2, while First Trust Advisors expanded its stake by 240% to 1.26 million shares, worth $236 million, in Q3. Envestnet Asset Management more than doubled its holding to 1.10 million shares (up 121%), and Balyasny Asset Management established a $126 million position. As of the latest filings, institutional investors account for 57.96% of HSY’s outstanding shares, underscoring strong confidence from large asset managers.