Is the Recent The Honest Company IPO a Good Stock to Invest In? By StockNews
© Reuters. Is the Recent The Honest Company IPO a Good Stock to Invest In?
Clean lifestyle product manufacturer The Honest Company (HNST) made its stock market debut on May 5. However, the stock’s price has been retreating lately, following the company’s release of a disappointing second-quarter earnings report. So, will HNST be able to attract significant retail investor interest by leveraging founder Jessica Alba’s immense social media influence? Read more to find out.The Honest Company (HNST) in Los Angeles is a retail lifestyle company founded by actress Jessica Alba. It is known for its sustainable plant derivative products, which include baby products, non-toxic skincare, personal hygiene items, and supplements.
The company went public through a traditional IPO by listing 28.50 million shares on the Nasdaq Stock Exchange on May 5. HNST raised $412.80 million from the IPO, which is expected to fund its general corporate expenses.
The stock opened at $21.22, up 32.6% on its first trading day, which was above the $16 pre-listing share price. However, the shares have since declined 12.2% to close Friday’s trading session at $10.07.
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