Citigroup adjusted its rating on HSY to "sell"
Even with Halloween fast approaching, Citigroup is staying away from Hershey Co (NYSE:HSY). The analyst in question downgraded the stock to "sell" from "neutral," and lowered its price objective to $182 from $195, noting cocoa inflation and volume challenges may negatively impact earnings.
HSY was last seen down 0.8% to trade at $194.80, but the 40-day moving average looks ready to contain this pullback. Shares have been retreating after jumping to their highest level since May earlier this month, and carry a 10.8% year-over-year deficit.
The security's 50-day call/put volume ratio of 3.01 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 90% of readings from the past year. This means bullish bets have been much more popular than usual.
Premium is affordably priced, too, making now an opportune time to bet on Hershey stock. This is per its Schaeffer's Volatility Index (SVI) of 19%, which sits in the low 24th percentile of annual readings.