UBS Group AG Purchases 442,542 Shares of The Honest Company, Inc. $HNST

Key Points

• UBS Group AG significantly boosted its stake in The Honest Company, buying 442,542 additional shares in the fourth quarter and lifting its holdings to 1,014,939 shares, worth about $2.62 million.
• Analyst sentiment is mixed but leaning neutral, with the stock carrying an average rating of “Hold” and an average target price of $3.47. Recent notes ranged from upgrades to hold, while one firm reiterated a buy rating.
• Honest posted modest quarterly results, reporting EPS of $0.01 and revenue of $78.1 million, slightly above expectations. The company also has a $25 million share buyback authorization in place.

UBS Group AG raised its position in The Honest Company, Inc. (NASDAQ:HNST - Free Report) by 77.3% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,014,939 shares of the company's stock after purchasing an additional 442,542 shares during the period. UBS Group AG owned approximately 0.91% of Honest worth $2,619,000 as of its most recent filing with the SEC.

Other large investors have also recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd increased its stake in Honest by 1,392.2% in the third quarter. Caitong International Asset Management Co. Ltd now owns 7,073 shares of the company's stock valued at $26,000 after purchasing an additional 6,599 shares in the last quarter. Wealthcare Advisory Partners LLC bought a new stake in shares of Honest during the fourth quarter worth $32,000. Equity Wealth Partners LLC bought a new stake in shares of Honest during the third quarter worth $37,000. CIBC Bancorp USA Inc. bought a new stake in shares of Honest during the third quarter worth $39,000. Finally, Northwestern Mutual Wealth Management Co. increased its position in shares of Honest by 85,544.4% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 15,416 shares of the company's stock worth $57,000 after acquiring an additional 15,398 shares in the last quarter. Institutional investors own 45.54% of the company's stock.

Wall Street Analysts Forecast Growth

HNST has been the subject of several recent research reports. Zacks Research upgraded shares of Honest from a "strong sell" rating to a "hold" rating in a report on Thursday, March 26th. Morgan Stanley set a $3.40 target price on shares of Honest in a report on Thursday, May 7th. Telsey Advisory Group restated a "market perform" rating and set a $4.00 target price on shares of Honest in a report on Thursday, May 7th. Wall Street Zen upgraded shares of Honest from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Finally, Alliance Global Partners restated a "buy" rating on shares of Honest in a report on Thursday, May 7th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Honest presently has an average rating of "Hold" and an average target price of $3.47.

Insider Transactions at Honest

In other Honest news, SVP Kunssberg Etienne Von sold 12,179 shares of the stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $2.85, for a total value of $34,710.15. Following the completion of the sale, the senior vice president owned 308,710 shares in the company, valued at $879,823.50. This trade represents a 3.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, General Counsel Brendan Sheehey sold 9,784 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $3.14, for a total transaction of $30,721.76. Following the completion of the transaction, the general counsel directly owned 715,888 shares in the company, valued at $2,247,888.32. The trade was a 1.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 366,952 shares of company stock valued at $1,097,489. 9.40% of the stock is owned by company insiders.

Honest Price Performance

Shares of HNST stock opened at $3.56 on Wednesday. The stock has a market cap of $391.88 million, a P/E ratio of -20.94 and a beta of 2.15. The company has a fifty day moving average price of $3.15 and a two-hundred day moving average price of $2.78. The Honest Company, Inc. has a one year low of $2.07 and a one year high of $5.28.

Honest (NASDAQ:HNST - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $0.01 EPS for the quarter, meeting analysts' consensus estimates of $0.01. The firm had revenue of $78.10 million during the quarter, compared to analysts' expectations of $76.25 million. Honest had a negative net margin of 5.39% and a positive return on equity of 3.52%. As a group, equities research analysts anticipate that The Honest Company, Inc. will post 0.1 EPS for the current fiscal year.

Honest declared that its Board of Directors has authorized a stock buyback plan on Friday, February 20th that authorizes the company to repurchase $25.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 9.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its shares are undervalued.

About Honest

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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