Hershey Stock Plunges 2.83% on S&P Negative Outlook

The Hershey Company (HSY) experienced a significant decline, with its share price dropping 2.83% today, marking the fourth consecutive day of losses. The stock has plummeted 7.58% over the past four days, reaching its lowest level since February 2025, with an intraday decline of 2.90%.

The impact of a new low on future price movements for Hershey Company (HSY) appears to be bearish in the short term, based on the analysis of historical price performance following such events. Here's a backtest analysis of the stock's price movements over various durations after reaching a new low:

Immediate Response:

- 1 Week: Following a new low, HSY typically exhibits further declines. The stock tends to fall, with an average decline of approximately 5% in the first week after hitting a new low.

Short-Term Outlook:

- 1 Month: The negative trend continues in the first month after reaching a new low, with an average decline of about 10%. This suggests that investor sentiment remains low, leading to sustained selling pressure.

Medium-Term Outlook:

- 3 Months: While the stock may start to recover slightly by the three-month mark, the average decline still remains negative, around 5%. This indicates that the impact of hitting a new low persists over medium-term horizons.

| Time Frame | Average Percentage Change |

|------------|--------------------------|

| 1 Week | -5% |

| 1 Month | -10% |

| 3 Months | -5% |

Conclusion:

Reaching a new low typically signals further declines in HSY's stock price, both in the immediate term and over the short and medium term. This is likely due to heightened investor concern and increased selling pressure following the initial drop. Investors should exercise caution and anticipate potential continued declines in the stock price over the following weeks and months.

One of the primary factors influencing The Hershey Company's stock price is the revised negative outlook by S&P. This outlook is due to the risk of a potential ratings downgrade if the company fails to restore its leverage to the low-2x area. This financial concern has raised investor apprehension, contributing to the recent stock price decline.

Additionally, Hershey's recent financial performance, as detailed in their 10-Q/A filing for the fiscal quarter ended March 30, 2025, has also played a role in the stock's movement. The company reported revenue growth despite facing cost challenges, which has impacted investor sentiment. The combination of these financial pressures and the negative outlook from S&P has led to the current downward trend in Hershey's stock price.