Could Hershey Co Change Direction After Today’s Bearish Options Activity?

 Could Hershey Co Change Direction After Today's Bearish Options Activity?

In today’s session Hershey Co (HSY) recorded an unusually high (472) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious HSY decrease. With 472 contracts traded and 19204 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: HSY161021P00095000 closed last at: $0.89 or 21.9% down. About 58,118 shares traded hands. Hershey Co (NYSE:HSY) has risen 2.23% since March 9, 2016 and is uptrending. It has underperformed by 5.19% the S&P500.

Analysts await Hershey Co (NYSE:HSY) to report earnings on October, 26. They expect $1.18 earnings per share, up 0.85% or $0.01 from last year’s $1.17 per share. HSY’s profit will be $249.05 million for 20.08 P/E if the $1.18 EPS becomes a reality. After $0.85 actual earnings per share reported by Hershey Co for the previous quarter, Wall Street now forecasts 38.82% EPS growth.

Hershey Co (NYSE:HSY) Ratings Coverage

Out of 12 analysts covering The Hershey Company (NYSE:HSY), 1 rate it a “Buy”, 3 “Sell”, while 8 “Hold”. This means 8% are positive. $105 is the highest target while $82 is the lowest. The $92.22 average target is -2.68% below today’s ($94.76) stock price. The Hershey Company has been the topic of 25 analyst reports since August 5, 2015 according to StockzIntelligence Inc. Argus Research upgraded the stock to “Buy” rating in Wednesday, January 20 report. Bank of America downgraded the shares of HSY in a report on Wednesday, April 20 to “Underperform” rating. The firm has “Underperform” rating by Bank of America given on Tuesday, August 30. The stock of Hershey Co (NYSE:HSY) earned “Neutral” rating by JP Morgan on Tuesday, September 6. The firm has “Hold” rating by Deutsche Bank given on Monday, August 10. The stock has “Market Perform” rating given by Wells Fargo on Wednesday, August 5. The firm has “Sector Perform” rating given on Tuesday, January 26 by RBC Capital Markets. The firm has “Buy” rating given on Tuesday, December 8 by Argus Research. The firm earned “Overweight” rating on Wednesday, September 16 by JP Morgan. The stock has “Neutral” rating given by UBS on Wednesday, February 24.

According to Zacks Investment Research, “The Hershey Company is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products. Hershey markets such well-known brands as Hershey’s, Reese’s, Hershey’s Kisses, Kit Kat, Almond Joy, Mounds, York, Jolly Rancher, Twizzlers, and Ice Breakers as well as innovative new products such as Swoops and Hershey’s S’mores. Hershey also offers a variety of snack products to consumers, including Hershey’s Cookies, Mauna Loa macadamia nuts, and Hershey’s Snack Barz.”

Insitutional Activity: The institutional sentiment decreased to 0.85 in 2016 Q2. Its down 0.31, from 1.16 in 2016Q1. The ratio is negative, as 60 funds sold all Hershey Co shares owned while 233 reduced positions. 74 funds bought stakes while 175 increased positions. They now own 111.39 million shares or 6.18% less from 118.72 million shares in 2016Q1.
Great West Life Assurance Can, a Manitoba – Canada-based fund reported 184,758 shares. Moreover, Timber Hill Ltd Liability Corporation has 0.02% invested in Hershey Co (NYSE:HSY) for 41,205 shares. Madison Investment Hldg last reported 0.6% of its portfolio in the stock. Westport Resource Mgmt holds 260 shares or 0.01% of its portfolio. Mirae Asset Global Invests owns 28,451 shares or 0.08% of their US portfolio. Bnp Paribas Arbitrage owns 85,726 shares or 0.04% of their US portfolio. Caz Lp holds 1.96% or 16,220 shares in its portfolio. Glenview Financial Bank Tru Dept accumulated 6,700 shares or 0.44% of the stock. Henderson Plc holds 19,000 shares or 0.02% of its portfolio. 10 owns 4,429 shares or 0.14% of their US portfolio. Oarsman Cap, a Wisconsin-based fund reported 2,000 shares. Mackenzie Financial reported 205,402 shares or 0.13% of all its holdings. Schulhoff & Inc holds 0.18% of its portfolio in Hershey Co (NYSE:HSY) for 2,531 shares. Bahl Gaynor Inc last reported 0.04% of its portfolio in the stock. Macquarie Group last reported 0% of its portfolio in the stock.

Insider Transactions: Since April 15, 2016, the stock had 0 insider buys, and 6 selling transactions for $4.10 million net activity. Another trade for 1,100 shares valued at $122,551 was made by Wege D Michael on Monday, August 15. Buck Michele sold 13,500 shares worth $1.45 million. 13,568 Hershey Co (NYSE:HSY) shares with value of $1.30 million were sold by WALLING KEVIN R.

The Hershey Company is a producer of chocolate and non-chocolate confectionery. The company has a market cap of $20.00 billion. The Company’s principal confectionery offerings include gum and mint refreshment products; pantry items, such as baking ingredients, toppings and beverages, and snack items, such as spreads, meat snacks, bars, and snack bites and mixes. It has a 31.2 P/E ratio. The Firm operates through two divisions: North America, and International and Other.

HSY Company Profile

The Hershey Company, incorporated on October 24, 1927, is a producer of chocolate and non-chocolate confectionery. The Company’s principal confectionery offerings include gum and mint refreshment products; pantry items, such as baking ingredients, toppings and beverages, and snack items, such as spreads, meat snacks, bars, and snack bites and mixes. The Firm operates through two divisions: North America, and International and Other. The Firm markets, sells and distributes its products under approximately 80 brand names in over 70 countries across the world. The Company’s manufacturing facilities are located in Hershey and Lancaster, Pennsylvania; Monterrey, Mexico, and Stuarts Draft, Virginia. The United States, Canada and Mexico facilities support its North America segment, while the China and Malaysia facilities serve its International and Other segment. The Company’s clients are wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires and department stores.

More news for Hershey Co (NYSE:HSY) were recently published by: Businesswire.com, which released: “The Hershey Company to Launch Hershey’s Cookie Layer Crunch” on October 04, 2016. Businesswire.com‘s article titled: “Get Treat-Spired This Halloween with Fun and Unique Treats from The Hershey …” and published on October 06, 2016 is yet another important article.

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