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To Be Brutally Honest, Jessica Alba-Founded Honest Co. Is Not Looking Pretty

Founded by actress Jessica Alba, The Honest Company, Inc. (HNST) is a clean lifestyle brand that designs and sells environmentally sustainable baby, personal, and beauty care  products. However, this has not translated into strength for the stock price.

Following the company’s latest earnings report and a sell-side firm downgrading HNST to “hold” from “buy” the stock is down sharply in trading Friday. 

Let’s review the charts and indicators.  

In this daily bar chart of HNST, below, we can see that prices have made a new low for the move down. Trading volume appears to be heavy as people are voting with their feet. We do not have a lot of price history but the slopes of both the 50-day and the 200-day moving average lines are bearish.
The Moving Average Convergence Divergence (MACD) oscillator looks like it will turn down from the underside of the zero line — another sell signal. 
In this weekly Japanese candlestick chart of HNST, below, we are not finding any bullish clues. 
In this daily Point and Figure chart of HNST, below, we can see the long decline with no gaps as this charting technique fills in the gaps. A price target of close to $3 is shown.  
Bottom-line strategy: This is my first time looking at HNST and I do not like what I see. I find no positive news to report. Avoid the long side.

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