Why The Honest Company Stock Was Down Today
Shares of The Honest Company (NASDAQ: HNST), a company that makes chemical-free diapers, cosmetics, and other household products, fell on Thursday after the company released financial results for the first quarter of 2021. This was its first quarterly report since its May initial public offering (IPO) but it seems investors didn't like what they saw. As of 10:45 a.m. EDT, the stock was down 9%.
In the first quarter, Honest generated revenue of $81 million, up 12% from the $72 million it generated in the first quarter of 2020. However, the company registered a net loss of $4.5 million compared to a better than $0.5 million profit last year. Wall Street's reaction to this was mixed. For example, a Guggenheim analyst downgraded the stock to neutral following the report, according to The Fly. But other firms upgraded and raised price targets.
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Source Fool.com
