What Happened?
Shares of natural food company Hain Celestial (NASDAQ: HAIN) fell 3.4% in the morning session after investment firm Stephens downgraded the stock to Equalweight from Overweight and slashed its price target.
The downgrade followed a string of bad news that sent the stock tumbling the previous day. Hain Celestial reported disappointing fiscal fourth-quarter results, missing analyst expectations on both profit and revenue. The natural food company posted an adjusted loss when Wall Street looked for a profit, and sales declined 13% year-over-year. Weakness was clear in its North America segment, where organic sales dropped 14%, hit by poor performance in snacks and meal prep. Compounding the negative sentiment, Mizuho also kept a Neutral rating but cut its price target by 40% a day prior. The company gave no financial guidance for the next fiscal year, citing a lack of visibility, which left investors with more uncertainty.
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What Is The Market Telling Us
Hain Celestial’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 4.3% on the news that the stock extended its negative momentum as the company reported disappointing fiscal fourth-quarter and full-year 2025 financial results that missed analyst expectations.
Hain Celestial is down 75.9% since the beginning of the year, and at $1.45 per share, it is trading 84.1% below its 52-week high of $9.09 from October 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $41.02.
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