uploads///Hain Celestials Stock Performance against Benchmark ETF

Hain Celestial’s Stock Fell on Updated Fiscal 2016 Guidance


Dec. 4 2020, Updated 10:53 a.m. ET

Hain Celestial’s stock hurt by updated guidance

The Hain Celestial Group (HAIN) will report its fiscal 2Q16 results on February 1, 2016. On January 11, the company updated its previously announced guidance for fiscal 2016, which affected its share price. On January 15, the stock hit a 52-week low of $34.94, having fallen by 1.5% from the previous day to close at $35.96. Hain Celestial’s stock fell by 29% in 2015 and has fallen by 12% so far in 2016. It closed at $35.03 in yesterday’s trade. We’ll discuss the updated guidance in the next article in this series.

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Stock performance since last quarter’s earnings release

Hain Celestial’s shares rose by 7% on January 12 when Canaccord Genuity Group lowered the target price for Hain Celestial from $55 to $47, although it maintained its “buy” rating for the stock. The stock has been in a falling trend since then and has fallen by 27% since the last quarter’s earnings release.

HAIN fell by 3% on January 22 when Piper Jaffray lowered the price target for the stock from $47 to $42, despite maintaining its “strong buy” rating for the stock. The reason for lowering the target price was the leadership changes that have been taking place in the company.

On November 5, Hain Celestial reported its financial results for 1Q16, which ended on September 30, 2015. The stock didn’t react well to the earnings release and fell by 1% to close at $47.9, after having fallen by almost 7% after the company’s 4Q15 earnings release on August 18, 2015. The stock was trading in the range of $67–$70 in July after rising by as much as 20% at one point in 2015.

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Peers in the industry

Hain Celestial’s peers in the industry include Hormel Foods (HRL), J&J Snack Foods Corporation (JJSF), and Pinnacle Foods (PF). These stocks closed at $54.09, $106.2, and $41.75, respectively, in yesterday’s trade. The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.62% of its holdings in HAIN. Further, HRL, JJSF, and PF have weights of 3.8%, 2.9%, and 2.3%, respectively, in the PowerShares DWA Consumer Staples Momentum Portfolio (PSL). These ETFs closed at $91.83 and $54.09, respectively, in yesterday’s trade.

Series overview

In the next parts of the series, we’ll talk about Hain Celestial’s earnings and updated guidance. We’ll also discuss the moving averages of Hain Celestial and its peers as well as its performance in 1Q16. Further, we’ll take a gander at the company’s recent acquisition and analysts’ recommendations for the stock before the 2Q16 earnings release.


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