Why The Honest Company’s Stock Swooned in December
Investors shouldn’t rely entirely on outside recommendations for their stock buys, even if those doing the recommending are financial professionals. That said, when stock analysts change their views on a company, it can have an immediate and sometimes lasting effect on its shares.
That goes a long way to explaining the more than 16% decline of The Honest Company‘s (NASDAQ: HNST) stock in December. The drop can also be attributed to a pullback in market sentiment, as the shares were on quite a run before that month.
In the middle of the month, Loop Capital’s Laura Champine downgraded her recommendation on The Honest Company to hold; previously she had tagged it as a buy. She didn’t, however, modify her price target, which remained steady at $7 per share.
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