Hershey Trust Sells 20,000 Shares for $3.4 Million
Key Points
The disposed shares represent 2% of the entity's total equity holdings prior to the filing.
The firm maintains direct ownership of ~766,000 shares and indirect ownership of 39,630 shares through the Milton Hershey School Trust.
This disposal represents a marginal adjustment of the firm's equity exposure while it continues to hold substantial voting power through derivative Class B shares.
Trust Co Trustee In Trust For Milton Hershey School Hershey, an entity insider of The Hershey Company (NYSE:HSY), reported a sale of 20,000 shares of common stock at $169.08 per share, according to an SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold | 20,000 |
| Transaction value | ~$3.4 million |
| Post-transaction shares | 805,749 |
| Post-transaction shares (directly held) | 766,119 |
| Post-transaction shares (indirectly held) | 39,630 |
| Post-transaction value | ~$136.8 million |
Transaction value based on SEC Form 4 weighted average sale price ($169.08); post-transaction value based on Sept. 18, 2026, market close ($169.79).
Key questions
- What was the nature of the execution for this transaction?
The firm executed the sale in multiple tranches over two trading sessions, with execution prices ranging from $166.74 to $171.48 per share. - How does this disposal impact the entity's direct common stock position?
The sale of 20,000 shares corresponds to 3% of the entity's directly held common stock, leaving the firm with ~766,000 shares in its direct account. - What is the significance of the entity's derivative holdings?
In addition to its common stock, the firm manages 54.6 million derivative units in the form of Class B common stock, which is convertible into common stock on a share-for-share basis at any time. - What is the broader context of the reporting firm's ownership?
The Hershey Trust Company serves as the trustee for the Milton Hershey School Trust, which is the sole owner of the trust company and holds the firm's indirect equity position.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-09-21) | $167.90 |
| Market Capitalization | $33.7 billion |
| Revenue (TTM) | $12.2 billion |
| Net Income (TTM) | $1.5 billion |
Company Snapshot
- The Hershey Company manufactures and distributes a comprehensive portfolio of confectionery products and salty snacks, generating revenue through three primary business segments: North America Confectionery, North America Salty Snacks, and International operations.
- The company operates a vertically integrated business model that encompasses manufacturing, distribution, and retail partnerships, leveraging its extensive brand portfolio and established supply chain to capture market share across multiple consumer segments.
- The company serves consumers across the United States and international markets through retail channels, foodservice distributors, and direct-to-consumer platforms, with particular strength in the mass-market confectionery and snacking categories.
The Hershey Company is a leading global manufacturer of confectionery and snacking products with a market capitalization of $33.7 billion and TTM revenues of $12.2 billion. The company maintains a diversified product portfolio across multiple consumer segments and geographic markets, supported by established brand recognition and a robust distribution infrastructure. With 18,573 employees globally, Hershey leverages its operational scale and brand equity to sustain competitive positioning within the consumer defensive sector.
What this transaction means for investors
Although the Form 4 did not state a reason for the transaction, the Hershey Trust's share sale was probably driven by the needs of the Milton Hershey School Trust rather than by concerns about Hershey stock.
Admittedly, given the relatively flat performance of the consumer staples stock over the last five years, investors may have grown increasingly frustrated with Hershey. However, the trust sold only about 2% of its shares, indicating a continued commitment to the stock.
Moreover, in its current state, the stock is probably more of a hold than a sell. Indeed, rising cocoa prices, rising competition, and appetite suppression caused by the rising popularity of GLP-1 drugs are probably working against the company.
However, net sales have increased this year, up 9% in the first half of 2026. Such growth does not point to a reason to give up on the stock. Also, while a P/E ratio of 25 is too high to attract bargain hunters, it is a fair valuation that should keep the Hershey Trust heavily invested in the stock.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hershey. The Motley Fool has a disclosure policy.