Hershey's share price has fallen to $188.62, down sharply from a February peak of $236.28. The slide follows earnings that revealed a 60 percent drop in profits, driven by cost pressures and weak consumer demand.
The weakness prompted the Hershey Trust Company, the controlling shareholder and trustee for the Milton Hershey School Trust, to reduce its stake. According to an SEC filing, the Trust sold 30,000 common shares valued at over $5.7 million. The Trust announced the planned sale on 17 March as part of a "long-term strategy to prudently diversify the Milton Hershey School Trust investment portfolio." It retains an estimated 1.8 million shares.
The timing carries weight. The Hershey Trust is a long-term, mission-driven shareholder, and any reduction in its holding draws scrutiny when confidence in the business is already strained. The share sale came on the heels of the announcement that Hershey's US president would step down after just one year, adding to perceptions of leadership instability.
Together, the profit shock, executive departure, and now the partial stake sale underscore mounting pressure facing the confectionery maker as it navigates a tougher consumer environment.