Hershey falls 3.4% as trading volume rises amid product news and mixed sector pressure

What happened

Hershey (HSY) fell 3.4% on October 23, 2026, as trading volume rose to 1.3 times its 20-day average and the decline coincided with a report about a new protein powder product. The S&P 500 fell 0.5% that day and the Consumer Defensive sector median fell 1.6%, leaving the stock 1.9 percentage points worse than its sector median. The move was part market and sector and part company-specific, so the report only coincided with the decline.

How big was the move

The stock closed at $169.64 after opening 0.7% below the previous close. The session’s change equaled 2.4 times a typical daily move for this stock. Over the last five sessions the stock fell 0.7%, while the S&P 500 over five sessions fell 0.5%. In the past five years the stock experienced 19 sessions with a decline of at least 3.4%; twenty trading days later the median result was a decline of 1.6%, and 7 of 19 were higher.

The technical picture

The stock was 3.1% above its 20-day moving average but 1.2% below its 50-day moving average and 10.5% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) stood at 53, in the neutral range between 30 and 70. The shares sat 29.2% below the 52-week high, had risen 1.7% over one month and fallen 5.9% over three months. Volatility was 23% annualized over 60 days, higher than 56% of its own readings over five years.

Fundamentals and valuation

For the four quarters through June 28, 2026, revenue was $12.16 billion, a gain that grew 7.7% from a year earlier. Diluted earnings per share were $7.32, with earnings per share growth that fell 2.8% compared with a year earlier. Gross margin was 38.1%, down from 40.1% a year earlier, and operating margin was 17.6%, down from 18.7%. Free-cash-flow margin was 20.9% and return on invested capital was 14.3%. The balance sheet showed net debt of 1.8 times EBITDA, and share count over one year increased by 0.5%.

Valuation metrics show the stock at 23.2 times trailing earnings and 20.0 times expected earnings on a price to forward earnings basis. The price to trailing earnings is lower than 67% of its own readings over the past five years, whose five-year median is 25.9 times earnings. Free-cash-flow yield was 7.4%. PromtFinance scores rank Quality at 89 (Strong) and Stability at 92 (Exceptional), while Momentum is 39 (Weak) and Value is 50 (Neutral).

Earnings and analyst expectations

Hershey’s next report is expected on October 29, 2026. The company’s last report, on July 30, 2026, delivered earnings per share of $1.90 against $1.43 expected, 32.9% above estimates. That marked seven consecutive quarters beating estimates, with an average surprise over the last four reports of 22.9% above estimates. The typical two-day reaction after recent reports was that the stock rose 0.6%.

Analysts’ consensus price target stood at $200.29, which is 18.1% above the closing price. Thirty-five analysts publish ratings, with 26% rating the stock Buy or Strong Buy and the consensus rating at Hold. Revisions scored 68 (Positive) in the PromtFinance ranking, reflecting relatively constructive estimate movement.

What to watch

• October 29, 2026: next earnings report date.
• July 30, 2026: last report delivered earnings per share of $1.90 against $1.43 expected, 32.9% above estimates.
• Consensus price target $200.29, 18.1% above the closing price.
• Trading volume on October 23, 2026, was 1.3 times its 20-day average.
• The stock was 3.1% above its 20-day moving average and 10.5% below its 200-day moving average.