Insider Trading May 27, 2026 05:10 PM

Hershey Trust Co.'s Stock Sales and Analyst Upgrades Highlight Confectionery Sector Dynamics

Sale of shares by a major institutional holder comes amidst positive financial outlook revisions and discussions regarding commodity inflation.

By Leila Farooq HSY

The Trustee in Trust for Milton Hershey School, a 10% owner of The Hershey Company (NYSE:HSY), recently sold approximately $3.9 million worth of common stock over two days in May 2026. This transaction occurred while the company's stock traded near current levels and amidst analyst positive reports regarding its financial stability and future growth prospects.

Hershey Trust Co.'s Stock Sales and Analyst Upgrades Highlight Confectionery Sector Dynamics
HSY

Key Points

  • The Hershey Trust Co., a significant institutional holder, executed sales totaling $3.9 million in May 2026, while the stock traded near $197.82.
  • Financial institutions like S&P Global Ratings have revised the outlook to 'stable,' projecting EBITDA expansion of over 20% in fiscal 2026 despite high cocoa costs and weak consumer sentiment.
  • Analyst upgrades (Evercore ISI) maintain an 'Outperform' rating with a $255 price target, while commodity inflation forecasts (Jefferies) remain elevated due to geopolitical risks.

The Trustee in Trust for Milton Hershey School, which holds a 10% stake in The Hershey Company (NYSE:HSY), executed recent sales of common stock that totaled approximately $3.9 million, according to filings submitted to the SEC.

These transactions took place over two days, specifically May 26 and May 27, 2026. The disposition involved a total of 19,800 shares of common stock. Analysis of the sales shows that the shares were sold at varying prices, ranging from $190.73 to $199.25 per share. At the time of writing, the company's stock was reported to be trading at $197.82, reflecting a 24% increase over the previous year, despite experiencing some recent price pullbacks.

Following these divestitures, the direct holdings of The Hershey Company common stock held by Hershey Trust Co. were adjusted to 1,556,119 shares. Furthermore, the Trust maintains an indirect position in the company, holding an additional 39,630 shares through a subsidiary structure: Hershey Trust Company, which is wholly owned by Milton Hershey School Trust. The scope of the Trust's ownership also includes a substantial holding of 54,612,012 shares of Class B Common Stock. These specific shares possess the feature that they are convertible on a one-for-one basis into common stock at any time.

Analyst Sentiment and Financial Stability

Beyond the institutional transactions, several external analyses point toward a stable financial picture for Hershey. According to InvestingPro analysis, The Hershey Company has demonstrated remarkable consistency by maintaining its dividend payments for 56 consecutive years, currently offering a yield of 3.04%. Furthermore, the platform's Fair Value assessment suggests that the stock is fairly valued at its current market levels.

In more recent corporate news, S&P Global Ratings revised Hershey’s financial outlook to 'stable.' This revision was predicated on the company maintaining a leverage ratio of 2x or below following the acquisition of LesserEvil. Despite facing headwinds from elevated cocoa costs and general weak consumer sentiment, S&P anticipates that Hershey will expand its EBITDA by more than 20% in fiscal 2026. This expected expansion is tied to anticipated increases in organic revenue coupled with planned cost reductions.

Adding to the positive external view, Evercore ISI upgraded Hershey’s stock rating to 'Outperform.' This upgrade cited a generally positive forecast for the confection category during the second half of 2026. The firm's recommendation included setting a price target of $255, underscoring notable optimism derived from recent discussions with retailers.

Macroeconomic Context and Reporting Structures

The broader financial landscape also suggests shifts in commodity expectations. Jefferies recently raised its forecast for 2026 commodity inflation to 2.1% year-over-year. This adjustment is attributed to disruptions occurring in the Middle East, which are specifically affecting various commodity categories, including grains and packaging materials.

Separately, Barclays analysts have suggested that adopting a shift to semi-annual financial reporting could potentially benefit U.S. packaged food companies, with Hershey being one example. This structural change is posited to mitigate short-term financial pressures for the company. The possibility of such a change in reporting frequency is currently under review by the SEC, amid ongoing discussions concerning how external economic factors might impact the food industry.

Market Data Overview

Current market data shows The Hershey Company stock trading at $197.82, representing a 3.51% increase on the day of reporting (or +6.70 relative to the previous close). This data is presented alongside historical charting information, indicating price movements over various time horizons, from one week up to five years.

Risks

  • Weak Consumer Sentiment: The article notes that general weak consumer sentiment remains a challenge for the company.
  • Elevated Cocoa Costs: High cocoa costs are cited as a persistent operational headwind affecting profitability.
  • Commodity Inflation and Geopolitics: Disruptions in the Middle East affect commodity categories like grains and packaging materials, contributing to inflation risks.

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