Hershey Co (NYSE: HSY)
Hershey was off to what seemed like a normal start in the market today. When the opening bell rang, the stock was already in the green. From there, it ran downward for a few minutes before news broke that caused the stock to spike. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to HSY ahead.
What We’re Seeing From HSY
As mentioned above, early on, it looked like Hershey was off to a relatively normal start to the trading session today. While the stock was in the green at the open, it quickly made a mad dash, headed for the break-even point. However, it never made it there. Shortly after the opening bell, news broke that caused a rally. Currently (9:45), HSY is trading at $104.20 per share after a gain of $1.03 per share (1.00%) thus far today.
Why The Stock Is Climbing
As usual, our partners at Trade Ideas were the first to alert us of the run on HSY. When we got that alert, the CNA Finance team started digging to see exactly what was causing the movement. While we didn’t find any fundamental releases from the company, we did find something interesting on Deal Reporter.
According to the site, Hershey is climbing in value because it is about to receive a takeover bid. While the amount of the bid is not mentioned in the report, the buyer is Mondelez. Nonetheless, it is important to treat this report as a rumor at this point as there has been no confirmation from either side that a deal may take place.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on HSY. In particular, we’re interested to see if Mondelez does actually make a bid for the company, and if they do, at what price and whether or not HSY will take it. We’ll keep a close eye on the story and bring you the updates as they break!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Flickr]