Hershey (NYSE:HSY) Shares Gap Up After Strong Earnings

Hershey Company (The) (NYSE:HSY)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $205.79, but opened at $218.85. Hershey shares last traded at $220.9270, with a volume of 1,561,223 shares trading hands.

The company reported $1.71 EPS for the quarter, beating analysts’ consensus estimates of $1.40 by $0.31. Hershey had a net margin of 7.55% and a return on equity of 27.90%. The company had revenue of $3.09 billion during the quarter, compared to analysts’ expectations of $2.97 billion. During the same quarter in the prior year, the company posted $2.69 earnings per share. Hershey’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.

Hershey Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Tuesday, February 17th will be paid a dividend of $1.452 per share. This is a positive change from Hershey’s previous quarterly dividend of $1.37. The ex-dividend date is Tuesday, February 17th. This represents a $5.81 annualized dividend and a yield of 2.5%. Hershey’s dividend payout ratio (DPR) is presently 81.91%.

Key Headlines Impacting Hershey

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Q4 results beat estimates and management raised FY‑2026 guidance (EPS 8.20–8.52, revenue ~ $12.2–12.3B), giving investors confidence in demand resilience and pricing power. Reuters: Hershey sees strong 2026
• Positive Sentiment: Hershey raised its quarterly dividend by 6% (to $1.452/share), signaling management confidence and attracting income investors ahead of the ex‑dividend date. PR Newswire: Hershey Declares Quarterly Dividends
• Positive Sentiment: Analysts raised price targets after the report — Evercore ISI lifted its target to $250 (in-line rating), and others followed with higher targets, supporting further upside narrative. The Fly: Evercore raises target
• Neutral Sentiment: Market reaction in cocoa futures — cocoa prices rose after Hershey’s upbeat outlook, reflecting eased demand concerns; this can be a mixed signal for margins vs. broader industry health. Barchart: Cocoa prices settle higher
• Neutral Sentiment: Several Wall Street firms reiterated Hold/Equal Weight but nudged up targets (Wells Fargo to $220, BofA to $240, TD Cowen to $210), indicating cautious optimism but not broad conviction to upgrade to Buy. Benzinga: Wells Fargo raises target
• Negative Sentiment: Margins remain under pressure from higher cocoa costs and tariffs; outlets highlighted that profit was dragged by these items even as top‑line and EPS beat. Continued commodity volatility is a downside risk to the earnings recovery. WSJ: Profit dragged by tariffs, cocoa costs
• Negative Sentiment: Analysts and commentary cautioned that cocoa price volatility and cost/tariff risks could limit margin recovery, supporting Hold ratings for risk‑averse investors. TipRanks: Hold ratings due to cocoa volatility

Analysts Set New Price Targets

HSY has been the subject of several recent analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of Hershey in a report on Thursday, January 22nd. Barclays set a $240.00 price objective on shares of Hershey in a research report on Friday. Piper Sandler set a $213.00 target price on shares of Hershey and gave the stock an “overweight” rating in a research report on Tuesday, January 6th. TD Cowen reaffirmed a “hold” rating on shares of Hershey in a report on Friday. Finally, Evercore ISI reiterated an “outperform” rating on shares of Hershey in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and sixteen have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $218.21.

Insider Transactions at Hershey

In related news, insider Stacy Taffet acquired 200 shares of Hershey stock in a transaction on Friday, November 21st. The stock was acquired at an average price of $186.19 per share, for a total transaction of $37,238.00. Following the purchase, the insider owned 9,371 shares of the company’s stock, valued at approximately $1,744,786.49. This represents a 2.18% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Steven E. Voskuil sold 1,500 shares of the business’s stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $198.67, for a total value of $298,005.00. Following the completion of the transaction, the chief financial officer directly owned 52,319 shares of the company’s stock, valued at approximately $10,394,215.73. This trade represents a 2.79% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 6,000 shares of company stock worth $1,119,450 over the last 90 days. 0.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Hershey

Several large investors have recently made changes to their positions in HSY. SJS Investment Consulting Inc. grew its position in shares of Hershey by 1,537.5% during the 3rd quarter. SJS Investment Consulting Inc. now owns 131 shares of the company’s stock valued at $25,000 after acquiring an additional 123 shares during the period. JPL Wealth Management LLC purchased a new position in Hershey during the third quarter worth approximately $26,000. Laurel Wealth Advisors LLC acquired a new stake in Hershey in the fourth quarter valued at approximately $27,000. Trust Co. of Toledo NA OH acquired a new stake in Hershey in the second quarter valued at approximately $28,000. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Hershey in the second quarter valued at approximately $31,000. 57.96% of the stock is currently owned by institutional investors and hedge funds.

Hershey Trading Up 3.0%

The firm has a market capitalization of $46.87 billion, a price-to-earnings ratio of 53.25 and a beta of 0.18. The company has a debt-to-equity ratio of 1.01, a quick ratio of 0.83 and a current ratio of 1.19. The company has a 50 day moving average price of $189.69 and a two-hundred day moving average price of $185.90.

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.