Hershey Company (NYSE:HSY)
Hershey News & Technicals
During normal trading hours on Thursday, Mondelez International (NASDAQ:MDLZ)) offered a bid to buy chocolate giant Hershey Co. (HSY) in what would form the largest chocolate company in the world. Mondelez is known for their Oreo cookies and Cadbury chocolate bars while Hershey is known for its Kisses and various chocolate bars as well. MDLZ offered to pay $107 per share with 50% of the deal done in cash and the other 50% done in stock. The deal would have to go through the HSY Trust which owns 8.4% of the company for the deal to go through. However, later in the same day HSY’s board of directors issued a statement that they were not interested in the buyout bid and that it “provided no basis for further discussion between Mondelez and the Company”. Before this buyout bid analysts had an average price target of $91.36.
Looking at the daily chart you will see that shares of HSY have been performing well for 2016 with a slight uptrend that has been picking up steam as of lately. On Thursday after the buy out bid became public, shares soared to highs of $117.79 after closing Wednesday at $97.14 equaling a 21% jump in price. Shares came back in after the buyout was rejected but still closed the day strong at $113.49. Despite the buyout being rejected the buyout bid was well above where prices were trading and has given them new momentum. We should see shares remain active over the next few days and we should see some support come in around $111.35, 110 and $107.50 while resistance will be met at $118 and $120. Expect shares to be volatile over the next few days as traders look to take advantage of this big move but it should create some great trading opportunities.
HSY Profile
The Hershey Company (NYSE:HSY) manufactures, imports, markets, distributes, and sells confectionery products. The company operates through two segments, North America, and International and Other. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products comprising chewing gums and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items, including spreads, meat snacks, bars and snack bites, and mixes. The company provides its products primarily under the Hershey’s, Reese’s, Kisses, Jolly Rancher, Almond Joy, Brookside, Cadbury, Good & Plenty, Heath, Kit Kat, Lancaster, Payday, Rolo, Twizzlers, Whoppers, York, Scharffen Berger, Dagoba, Ice Breakers, Breathsavers, and Bubble Yum brands, as well as under the Golden Monkey, Pelon Pelo Rico, IO-IO, Nutrine, Maha Lacto, Jumpin, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The Hershey Company was founded in 1894 and is headquartered in Hershey, Pennsylvania. – YahooFinance