Fintel reports that on September 22, 2023, HSBC initiated coverage of Hershey (NYSE:HSY) with a Buy recommendation.
Analyst Price Forecast Suggests 29.27% Upside
As of August 30, 2023, the average one-year price target for Hershey is 269.07. The forecasts range from a low of 235.33 to a high of $315.00. The average price target represents an increase of 29.27% from its latest reported closing price of 208.15.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Hershey is 11,089MM, an increase of 2.12%. The projected annual non-GAAP EPS is 9.02.
Hershey Declares $1.19 Dividend
On July 26, 2023 the company declared a regular quarterly dividend of $1.19 per share ($4.77 annualized). Shareholders of record as of August 18, 2023 received the payment on September 15, 2023. Previously, the company paid $1.04 per share.
At the current share price of $208.15 / share, the stock's dividend yield is 2.29%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.06%, the lowest has been 1.50%, and the highest has been 2.84%. The standard deviation of yields is 0.32 (n=236).
The current dividend yield is 0.72 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.54. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.48%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2180 funds or institutions reporting positions in Hershey. This is a decrease of 49 owner(s) or 2.20% in the last quarter. Average portfolio weight of all funds dedicated to HSY is 0.35%, a decrease of 11.80%. Total shares owned by institutions decreased in the last three months by 1.58% to 178,480K shares. 
The put/call ratio of HSY is 0.83, indicating a bullish outlook.
What are Other Shareholders Doing?
Hershey Trust holds 54,612K shares representing 26.71% ownership of the company. In it's prior filing, the firm reported owning 57,112K shares, representing a decrease of 4.58%. The firm decreased its portfolio allocation in HSY by 3.66% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,600K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 4,546K shares, representing an increase of 1.17%. The firm decreased its portfolio allocation in HSY by 8.37% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 3,507K shares representing 1.72% ownership of the company. In it's prior filing, the firm reported owning 3,430K shares, representing an increase of 2.21%. The firm decreased its portfolio allocation in HSY by 9.10% over the last quarter.
Geode Capital Management holds 3,180K shares representing 1.56% ownership of the company. In it's prior filing, the firm reported owning 3,489K shares, representing a decrease of 9.73%. The firm decreased its portfolio allocation in HSY by 19.12% over the last quarter.
Jpmorgan Chase holds 2,570K shares representing 1.26% ownership of the company. In it's prior filing, the firm reported owning 2,238K shares, representing an increase of 12.91%. The firm increased its portfolio allocation in HSY by 700.59% over the last quarter.
Hershey Background Information
(This description is provided by the company.)
The Hershey Company is headquartered in Hershey, Pa., and is an industry-leading snacks company known for bringing goodness to the world through its iconic brands, remarkable people and enduring commitment to help children succeed. Hershey has approximately 16,000 employees around the world who work every day to deliver delicious, quality products. The company has more than 80 brands around the world that drive $8 billionin annual revenues, including such iconic brand names as Hershey's®, Reese's®, Kit Kat®, Jolly Rancher®, Ice Breakers®, SkinnyPop®, and Pirate's Booty®. For more than 125 years, Hershey has been committed to operating fairly, ethically and sustainably. Hershey founder, Milton Hershey, created the Milton Hershey School in 1909 and since then the company has focused on helping children succeed.
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