HAIN

Hain Celestial($HAIN) Director Makes Bold 75,000 Share Purchase Following Stock's 30-Year Low Plunge

05/12/2025 20:46

Hain Celestial Group ($HAIN) director Shervin Korangy has made a significant stock purchase immediately following the company's share price plunge to a 30-year low. According to SEC filings, Korangy acquired 75,000 shares at an average price of $1.56 per share on May 9, representing an investment of approximately $117,173. This purchase comes on the heels of the company's May 7 earnings announcement, which included the resignation of CEO Wendy Davidson and a downward revision of annual sales growth forecast to -5% to -6%. Following that announcement, $HAIN shares plummeted by 53% in a single day, falling to $1.45. Korangy's substantial buy is not an isolated move. Hain Celestial's President Chad Marquardt has consistently purchased company stock over the past several months. Marquardt acquired 5,400 shares ($44,928) on September 4, 2024, followed by 100 shares ($829) on September 10, 2,500 shares ($18,638) on November 11, and 3,200 shares ($12,928) on February 20, 2025. Notably, Marquardt has demonstrated a pattern of increasing his purchases as the share price declined. Hain Celestial, a company specializing in organic and natural food products with brands like Earth's Best, Celestial Seasonings, and Terra Chips, has been facing severe financial challenges. According to its Q3 2025 (early 2025) earnings report, revenue declined by 11% year-over-year to $390.4 million, while net losses expanded to $134.6 million from $48 million in the same period last year. Particularly concerning was the 17% revenue drop in the North American market, which drove the overall performance decline. Operating cash flow also decreased significantly from $42 million last year to just $5 million. These financial deteriorations result from a combination of reduced consumer demand, distribution issues, and legal challenges, including a class action lawsuit regarding arsenic levels in baby food products. Amid these challenges, CEO Wendy Davidson resigned on May 7, 2025, with Alison Lewis appointed as interim CEO. The company also announced a portfolio review with Goldman Sachs to explore strategic options. The market view on Hain Celestial remains pessimistic. The stock has fallen approximately 80% since June 2024, with the decline accelerating in early 2025. However, the consistent insider buying could signal that the current market valuation may be excessively negative. Industry experts note that Hain Celestial still maintains a strong portfolio of brands in the organic and health food market, with slight organic growth in international markets. Some suggest that if the company effectively executes its five key strategies—simplifying operations, accelerating brand innovation, implementing revenue growth management, improving operational productivity, and strengthening digital capabilities—recovery may be possible. Shervin Korangy, an experienced executive who serves on several corporate boards and previously built his investment career at Blackstone Group, appears to be expressing confidence in the company's long-term value through his substantial purchase. His timing, coinciding with the stock reaching historic lows, has attracted market attention. Traditional valuation metrics are challenging to apply to Hain Celestial in its current state. With net losses, P/E ratios are not applicable, and the market capitalization stands at approximately $142.60 million, with a 52-week trading range of $1.30 to $9.43. The stock has declined over 74% year-to-date, reflecting investor sentiment and market performance. However, the persistent insider buying suggests the current share price may be trading below fundamental value. Insiders like President Marquardt and Director Korangy appear to be betting on the company's long-term recovery potential. Korangy's purchase of 75,000 shares, in particular, implies a significant upside potential at current price levels.

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