Hershey (NYSE:HSY) Shares Gap Down – Should You Sell?

The Hershey Company (NYSE:HSY)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $187.19, but opened at $178.65. Hershey shares last traded at $178.82, with a volume of 398,737 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Citigroup cut shares of Hershey from a “neutral” rating to a “sell” rating and decreased their target price for the company from $195.00 to $182.00 in a research report on Tuesday, August 27th. Argus lowered Hershey from a “buy” rating to a “hold” rating in a report on Wednesday, August 14th. Sanford C. Bernstein downgraded Hershey from an “outperform” rating to a “market perform” rating and dropped their target price for the stock from $230.00 to $205.00 in a research note on Monday, October 7th. Jefferies Financial Group lowered their price target on Hershey from $163.00 to $161.00 and set an “underperform” rating for the company in a report on Thursday, October 31st. Finally, Redburn Atlantic initiated coverage on shares of Hershey in a report on Tuesday, October 22nd. They set a “sell” rating and a $165.00 price objective on the stock. Five research analysts have rated the stock with a sell rating and fourteen have issued a hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $187.94.

Hershey Price Performance

The firm has a market cap of $36.81 billion, a PE ratio of 20.15, a price-to-earnings-growth ratio of 4.18 and a beta of 0.37. The stock has a 50 day simple moving average of $180.67 and a two-hundred day simple moving average of $188.69. The company has a debt-to-equity ratio of 0.76, a quick ratio of 0.54 and a current ratio of 0.85.

Hershey Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, November 18th will be issued a $1.37 dividend. This represents a $5.48 dividend on an annualized basis and a yield of 3.01%. The ex-dividend date of this dividend is Monday, November 18th. Hershey’s payout ratio is presently 63.13%.

Institutional Investors Weigh In On Hershey

Hedge funds and other institutional investors have recently made changes to their positions in the company. Ashton Thomas Securities LLC purchased a new position in shares of Hershey in the 3rd quarter valued at about $25,000. Capital Advisors Ltd. LLC increased its position in shares of Hershey by 218.2% in the second quarter. Capital Advisors Ltd. LLC now owns 140 shares of the company’s stock valued at $26,000 after buying an additional 96 shares in the last quarter. GHP Investment Advisors Inc. lifted its position in shares of Hershey by 55.0% during the 2nd quarter. GHP Investment Advisors Inc. now owns 155 shares of the company’s stock valued at $28,000 after buying an additional 55 shares in the last quarter. OFI Invest Asset Management acquired a new stake in Hershey in the 2nd quarter valued at $29,000. Finally, Gradient Investments LLC increased its holdings in Hershey by 71.9% in the 2nd quarter. Gradient Investments LLC now owns 251 shares of the company’s stock worth $46,000 after acquiring an additional 105 shares in the last quarter. Institutional investors and hedge funds own 57.96% of the company’s stock.

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.