Less than a week after its IPO, Jessica Alba’s Honest Co.‘s shares tanked again on Monday.
The consumer-packed-good (CPG) company originally filed for a $100 million initial public offering (IPO) and shortly after going public under the symbol “HNST,” the stock soared 44 percent. The stock then plummeted more than 7 percent in the next two sessions putting the company on pace to hit its third consecutive drop on Monday.
The overall stock value has declined by as much as 13 percent, sending the shares as low as $16.52, just a few cents higher than the company’s May 4 offering price of $16.
The company’s move to go public comes after witnessing its revenue jump by roughly 28 percent to $300 million in the year 2020, with diapers and wipes driving 63 percent of its sales and sales in skin and personal care category increasing by 36 percent. The company’s post-IPO future seems bleak, unfortunately. New Constructs, a data and research company, called Honest Co. “overvalued” and claims the stock is “worth no more than $7” a share.
The company was founded by actress Jessica Alba in 2012 and it specializes in offering safe and effective baby, beauty and household solutions. Alba now serves as chief creative officer.