Here's How Much Investing $100 In Hershey Stock Back In 2010 Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

Hershey’s Big Decade

One of the market leaders of the past decade was chocolate giant Hershey Co HSY.

Hershey’s financial performance and its stock gains throughout the 2010s were mostly consistent and steady. In fact, the biggest headline of the past 10 years for Hershey investors was a failed takeover attempt by Mondelez International Inc MDLZ back in 2016.

In June 2016, Oreo and Cadbury parent company Mondelez made a $23 billion cash-and-stock offer for Hershey valued at $107 per share. However, the charitable trust set up by Hershey’s founder more than 100 years ago to control the company and fund a school for underprivileged children rejected the buyout offer. The trust holds more than 80% of Hershey’s voting stock. Reports later indicated Mondelez would be willing to pay as much as $115 per share for Hershey, but Hershey would not even enter negotiations for any bids under $125 per share.

Even with the trust’s potential approval of a buyout deal, Hershey had a previous $12.5 billion buyout offer by Wm. Wrigley Jr. Co blocked by the Pennsylvania attorney general’s office back in 2002 following local community protests.

Mondelez eventually abandoned its buyout bid in August 2016, sending Hershey shares tumbling 11.4%.

Hershey shares started the 2010s trading at around $36. The stock dipped as low as $35.83 in early 2010, its lowest point of the decade. From that point forward, Hershey shares marched steadily higher, reaching $50 by mid-2010 and $100 my late 2013. After more than three years of trading between around $85 and $110, Hershey broke out to new all-time highs in mid-2016 on the Mondelez buyout rumors. The stock climbed as high as $117.79 before dropping when the deal was abandoned.

2020 And Beyond

Hershey finally broke out to new highs in early 2019 and made it as high as $162.20, its high water mark of the 2010s.

Though the stock has since pulled back below $160, Hershey investors did very well in the 2010s. In fact, $100 worth of Hershey stock in 2010 would be worth about $533 today, assuming reinvested dividends.

Looking ahead, analysts expect Hershey to struggle in 2020. The average price target among the 16 analysts covering the stock is $152, suggesting 3.7% downside from current levels.

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