BlackRock Inc. Invests $25.66 Million in The Honest Company, Inc. $HNST

Key Points

• BlackRock acquired a new 7.01 million-share stake in The Honest Company during the second quarter, worth approximately $25.66 million and representing 6.37% ownership. Institutional investors and hedge funds collectively own 45.54% of the company.
• Insiders have been selling shares, including a general counsel sale worth $48,223 and a director sale worth $155,774. Insiders sold 294,149 shares valued at about $1.5 million over the past 90 days.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $4.84, despite recent upgrades and target increases. HNST shares opened at $5.72, while the company reported quarterly revenue of $80.19 million and EPS of $0.04, beating estimates.

BlackRock Inc. bought a new stake in The Honest Company, Inc. (NASDAQ:HNST - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 7,011,486 shares of the company's stock, valued at approximately $25,662,000. BlackRock Inc. owned about 6.37% of Honest as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd increased its stake in Honest by 1,392.2% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 7,073 shares of the company's stock valued at $26,000 after buying an additional 6,599 shares during the period. Amicus Financial Advisors LLC purchased a new position in Honest during the 4th quarter worth $29,000. Hibernia Wealth Partners LLC acquired a new stake in shares of Honest in the 4th quarter worth $32,000. Equity Wealth Partners LLC acquired a new stake in shares of Honest in the 3rd quarter worth $37,000. Finally, CIBC Bancorp USA Inc. purchased a new stake in shares of Honest in the third quarter valued at about $39,000. 45.54% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Honest

In related news, General Counsel Brendan Sheehey sold 9,664 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $4.99, for a total value of $48,223.36. Following the completion of the transaction, the general counsel directly owned 706,224 shares of the company's stock, valued at $3,524,057.76. This trade represents a 1.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andrea Turner sold 29,899 shares of Honest stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $5.21, for a total value of $155,773.79. Following the transaction, the director directly owned 252,405 shares of the company's stock, valued at approximately $1,315,030.05. This represents a 10.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 294,149 shares of company stock worth $1,503,306. 9.40% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on HNST. Wall Street Zen upgraded shares of Honest from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Weiss Ratings raised Honest from a "sell (d-)" rating to a "sell (d)" rating in a report on Tuesday, August 11th. Morgan Stanley boosted their target price on Honest from $3.40 to $5.70 and gave the stock an "equal weight" rating in a research report on Wednesday, August 12th. Freedom Capital raised Honest from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 6th. Finally, Alliance Global Partners reissued a "buy" rating on shares of Honest in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $4.84.

Honest Stock Up 1.6%

Shares of HNST opened at $5.72 on Thursday. The company has a 50-day simple moving average of $4.41 and a 200-day simple moving average of $3.56. The company has a market capitalization of $629.66 million, a PE ratio of -52.00 and a beta of 2.24. The Honest Company, Inc. has a 52-week low of $2.07 and a 52-week high of $5.96.

Honest (NASDAQ:HNST - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of $0.01 by $0.03. Honest had a negative net margin of 3.56% and a positive return on equity of 4.31%. The firm had revenue of $80.19 million for the quarter, compared to the consensus estimate of $77.83 million. On average, research analysts anticipate that The Honest Company, Inc. will post 0.05 EPS for the current year.

Honest Company Profile

The Honest Company, Inc NASDAQ: HNST is an American consumer goods firm specializing in eco-friendly and responsibly formulated products for babies, personal care, beauty and home cleaning. The company emphasizes transparency in ingredient sourcing and product safety, positioning itself in the premium segment of mass-market retail and direct-to-consumer channels.

Honest was founded in 2011 by actress Jessica Alba and environmental health advocate Christopher Gavigan with a mission to offer parents household and baby care items free from harsh chemicals and synthetic fragrances.

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