According to multiple media reports, Hershey Co. (HSY) CEO Michele Buck is going to announce her resignation from the company.
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Buck, who has led the chocolate maker since 2017, will continue in her role and remain on Hershey’s board of directors while the company searches for her replacement. The media reports state that Buck plans to remain at Hershey until July 2026, at the latest.
While no final announcement has been made by Hershey, news of Buck’s departure comes during a tumultuous time for the Pennsylvania-based company. HSY stock has declined about 15% over the last 12 month as the price of cocoa, the active ingredient in chocolate, has skyrocketed to record highs.
Ongoing Struggles
With cocoa prices forecast to continue rising due to global supply shortages, Hershey recently sought permission to purchase a record amount of the commodity. The company also recently rebuffed a takeover offer from rival snack food company Mondelez (MDLZ).
The situation with cocoa prices has also pressured Hershey’s financial results, further depressing the company’s share price. The situation has led several analysts across Wall Street to downgrade HSY stock in recent months, citing the gloomy near-term outlook for the company and its sweets that include Reese’s Peanut Butter Cups and Hershey’s Kisses.
Is HSY Stock a Buy?
The stock of Hershey Co. has a consensus Moderate Sell rating among 18 Wall Street analysts. That rating is based on 13 Hold and five Sell recommendations issued in the last three months. The average HSY price target of $174.13 implies 7.34% upside from current levels.
