What Happened?
Shares of natural food company Hain Celestial (NASDAQ: HAIN) fell 4.3% in the morning session after an analyst at Mizuho lowered the company's price target, signaling a more cautious outlook on the stock's valuation. The analyst, John Baumgartner, reduced the price objective on Hain Celestial's stock to $2.50 from the previous target of $3.00. While the price target was cut, Mizuho maintained its "Neutral" rating on the shares. This adjustment, however, represented a nearly 17% decrease in the analyst's forecast for the stock's future price. A downward revision from a Wall Street firm often prompted investors to reassess their own expectations, which contributed to the selling pressure on the stock during the session.
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What Is The Market Telling Us
Hain Celestial’s shares are extremely volatile and have had 54 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 biggest move we wrote about over the last year was 3 months ago when the stock dropped 49% on the news that the company reported underwhelming first quarter 2025 results as it missed across revenue, EPS, and EBITDA, and its full-year EBITDA guidance fell short of Wall Street's estimates. Revenue was down 11%, and margins slipped a bit too, hurt by heavier discounting and slower demand. Overall, this quarter could have been better.
Hain Celestial is down 70.1% since the beginning of the year, and at $1.80 per share, it is trading 80.3% 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 $53.03.
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