Northland Capmk Increases Earnings Estimates for Honest

Key Points

• Northland Capital Markets raised its FY2025 earnings per share estimate for Honest Company from $0.02 to $0.04, indicating confidence in the company's financial turnaround.
• Despite a modest earnings report that missed expectations, Honest reported revenue of $93.46 million, surpassing analysts' estimates of $92.18 million.
• The stock currently has a Moderate Buy consensus rating with an average price target of $7.50, although Telsey Advisory Group recently lowered their price target from $7.00 to $6.00.

The Honest Company, Inc. (NASDAQ:HNST - Free Report) - Northland Capmk boosted their FY2025 earnings per share (EPS) estimates for Honest in a note issued to investors on Thursday, August 7th. Northland Capmk analyst O. Rickert now forecasts that the company will post earnings of $0.04 per share for the year, up from their prior forecast of $0.02. The consensus estimate for Honest's current full-year earnings is ($0.07) per share.

Honest (NASDAQ:HNST - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.02). The firm had revenue of $93.46 million for the quarter, compared to the consensus estimate of $92.18 million. Honest had a return on equity of 3.84% and a net margin of 1.66%.

Separately, Telsey Advisory Group reduced their price target on Honest from $7.00 to $6.00 and set a "market perform" rating on the stock in a report on Thursday, August 7th. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, Honest has a consensus rating of "Moderate Buy" and a consensus price target of $7.50.

Honest Stock Performance

Shares of NASDAQ:HNST traded down $0.03 during midday trading on Friday, hitting $3.98. 2,153,010 shares of the stock were exchanged, compared to its average volume of 2,806,170. The stock has a market capitalization of $442.30 million, a price-to-earnings ratio of 79.52 and a beta of 2.34. The business's 50-day moving average price is $4.72 and its 200 day moving average price is $5.00. Honest has a 12 month low of $3.32 and a 12 month high of $8.97.

Institutional Trading of Honest

Several institutional investors have recently added to or reduced their stakes in HNST. Nuveen LLC bought a new stake in Honest in the first quarter valued at approximately $10,554,000. D. E. Shaw & Co. Inc. boosted its holdings in Honest by 589.7% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 2,397,636 shares of the company's stock valued at $16,616,000 after acquiring an additional 2,049,981 shares during the last quarter. Victory Capital Management Inc. boosted its holdings in Honest by 98.8% in the first quarter. Victory Capital Management Inc. now owns 3,073,471 shares of the company's stock valued at $14,445,000 after acquiring an additional 1,527,080 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Honest by 25.7% in the fourth quarter. Vanguard Group Inc. now owns 5,147,369 shares of the company's stock valued at $35,671,000 after acquiring an additional 1,052,305 shares during the last quarter. Finally, Nuveen Asset Management LLC lifted its stake in Honest by 103.5% in the fourth quarter. Nuveen Asset Management LLC now owns 2,046,868 shares of the company's stock valued at $14,185,000 after buying an additional 1,041,040 shares during the period. 45.54% of the stock is currently owned by institutional investors.

Insider Activity at Honest

In related news, CFO David Loretta sold 34,389 shares of the company's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $5.32, for a total value of $182,949.48. Following the sale, the chief financial officer directly owned 883,153 shares in the company, valued at $4,698,373.96. This represents a 3.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, General Counsel Brendan Sheehey sold 12,017 shares of the company's stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $5.32, for a total value of $63,930.44. Following the completion of the sale, the general counsel owned 580,647 shares in the company, valued at $3,089,042.04. The trade was a 2.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 165,726 shares of company stock valued at $881,662. Corporate insiders own 8.90% of the company's stock.

About Honest

The Honest Company, Inc manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. The company also offers baby clothing and nursery bedding products. It sells its products through digital and retail sales channels, such as its website and third-party ecommerce sites, as well as brick and mortar retailers.