NEW YORK (TheStreet) -- Shares of Hain Celestial (HAIN - Get Report) were plummeting 27.77% to $38.57 on heavy trading volume early Tuesday morning after the New Hyde Park, NY-based organic foods company said it will delay filing its annual earnings report due to accounting issues.
The board's audit committee is conducting an independent review.
TheStreet's Jim Cramer said by phone on CNBC's "Squawk on the Street" this morning that the company has a "high-quality board" that will sort everything out, but investors should avoid the stock until then.
Cramer noted that he ultimately backs Hain Celestial CEO Irwin Simon, but accounting irregularities mean that investors can't own the stock until the company has sorted out the issues, which Cramer believes the board will eventually do.
Analysts at SunTrust and Barclays downgraded the stock to the equivalent of a "hold" rating, while Piper Jaffray and Atlantic Equities analysts cut their rating on the stock to the equivalent of "sell," TheFly reports. Bernstein suspended coverage.
JPMorgan analysts maintained their "overweight" rating but cut their price target on the stock to $43 from $49.
"We are not downgrading - we still see value in the longer-term prospects - but there is no doubt that the story has changed and become far more unclear and less attractive than it used to be, at least until the current situations are resolved," the firm wrote in a note.
About 3.01 million shares of Hain Celestial have been traded so far today vs. its average trading volume of roughly 1.52 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Hain Celestial's strengths such as its impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: HAIN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.