On September 25, 2023, Steven Voskuil, Senior Vice President and Chief Financial Officer of The Hershey Co (HSY, Financial), sold 1,500 shares of the company. This move comes as part of a series of transactions made by the insider over the past year.
The Hershey Co, a renowned name in the confectionery industry, is known for its chocolate, sweets, mints, and other snack products. The company markets its products under more than 80 brand names in around 70 countries worldwide. With a market cap of $41.96 billion, Hershey's is a significant player in the global confectionery market.
Over the past year, the insider has sold a total of 3,000 shares and made no purchases. This recent transaction is part of a trend seen in the company's insider transaction history. Over the past year, there have been 50 insider sells and no insider buys.
The stock was trading at $207 per share on the day of the insider's recent sell, giving the company a market cap of $41.96 billion. The price-earnings ratio stands at 23.61, higher than the industry median of 19.67 but lower than the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, The Hershey Co's stock is modestly undervalued. With a price of $207 and a GuruFocus Value of $245.90, the stock has a price-to-GF-Value ratio of 0.84.
The relationship between insider sell/buy transactions and stock price can provide valuable insights. In this case, the insider's sell transactions over the past year, coupled with the absence of insider buys, could be interpreted as a lack of confidence in the company's stock. However, it's also essential to consider other factors, such as the company's performance, market conditions, and the insider's personal financial decisions.
In conclusion, while the insider's recent sell transaction and the overall trend of insider sells at The Hershey Co might raise some eyebrows, the company's stock appears to be modestly undervalued according to the GuruFocus Value. As always, potential investors should conduct thorough research and consider various factors before making investment decisions.
