Brokerages Set $187.32 Target; GS Upgrades Hershey to Buy, Commonwealth Cuts 10.7% Stake
Twenty-two analysts rate Hershey an average hold, with a 1-year price objective of $187.32, and Goldman Sachs upgraded to buy, raising its target from $170 to $222. Commonwealth Equity Services LLC reduced its Hershey stake by 10.7% to 75,862 shares ($14.19M) in the third quarter.
1. Consensus “Hold” Rating with Select Upgrades
Twenty-two brokerages cover Hershey, assigning an average recommendation of “Hold”. Seventeen maintain that stance while five have upgraded to “Buy” or equivalent. Goldman Sachs notably raised its view from “Sell” to “Buy” on September 16 and lifted its one-year target from $170.00 to $222.00. BNP Paribas Exane moved its recommendation from “Neutral” to “Outperform” on September 15, while Stifel Nicolaus reaffirmed a “Hold” rating but increased its target from $185.00 to $195.00 on December 11. The consensus one-year price objective now stands at approximately $187.32.
2. Third-Quarter Results Surpass Estimates
For the quarter ended October 30, Hershey reported adjusted earnings per share of $1.30, beating the consensus estimate of $1.06 by 24 cents. Revenue rose 6.5% year-over-year to $3.18 billion, topping analysts’ forecasts of $3.11 billion. Net margin expanded to 11.84%, while return on equity reached 32.08%. Management reiterated full-year 2025 EPS guidance in the range of $5.90 to $6.00, and the analyst community projects full-year earnings of $6.12 per share.
3. Dividend Yield and Balance Sheet Metrics
Hershey declared a quarterly dividend of $1.37 per share on November 17, equating to an annualized payout of $5.48 and a yield of 2.9%. The dividend payout ratio stands at 81.9%. On the balance sheet, the company maintains a debt-to-equity ratio of 1.02, a current ratio of 1.36 and a quick ratio of 0.83. Market capitalization is approximately $38.3 billion, with a price-to-earnings multiple of 28.3 and a beta of 0.18.
4. Insider Transactions and Institutional Moves
In the past quarter, CFO Steven Voskuil sold 1,500 shares at an average of $188.51, reducing his stake by 2.7%. Conversely, CEO Kirk Tanner acquired 2,000 shares at an average of $185.46, boosting his ownership by 4.4%. Over the last 90 days insiders have net-sold 6,000 shares. On the institutional side, Norges Bank initiated a $234 million position in Q2, while First Trust Advisors more than tripled its holding to 1.26 million shares, valued at $236 million. Envestnet Asset Management increased its stake by 121% to 1.10 million shares, and Balyasny Asset Management added a $125.9 million position.