Honest (NASDAQ:HNST) Releases Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• Honest Company reported earnings of $0.03 per share for the quarter, missing analysts' expectations by $0.02, while generating revenue of $93.46 million, exceeding estimates by $1.28 million.
• Insider selling was significant, with Chief Financial Officer David Loretta selling over 34,000 shares, leading to a 3.75% decrease in his position.
• Telsey Advisory Group lowered its price target for Honest stock from $7.00 to $6.00, maintaining a "market perform" rating amidst varied analyst opinions, with three buy ratings and two holds.

Honest (NASDAQ:HNST - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.02), Zacks reports. The business had revenue of $93.46 million during the quarter, compared to analysts' expectations of $92.18 million. Honest had a return on equity of 3.84% and a net margin of 1.66%.

Honest Price Performance

Shares of NASDAQ HNST traded down $0.03 during mid-day trading on Tuesday, hitting $3.98. The company had a trading volume of 2,153,010 shares, compared to its average volume of 2,806,170. The company has a market capitalization of $442.30 million, a PE ratio of 79.52 and a beta of 2.34. Honest has a 1-year low of $3.32 and a 1-year high of $8.97. The business's 50-day simple moving average is $4.72 and its 200 day simple moving average is $5.00.

Analysts Set New Price Targets

Separately, Telsey Advisory Group lowered their price objective on Honest from $7.00 to $6.00 and set a "market perform" rating for the company in a research report on Thursday, August 7th. Two equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $7.50.

Insiders Place Their Bets

In other Honest news, insider Stephen Winchell sold 10,746 shares of the firm's stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $5.32, for a total value of $57,168.72. Following the sale, the insider directly owned 421,098 shares in the company, valued at $2,240,241.36. This trade represents a 2.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Dorria L. Ball sold 4,836 shares of the firm's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $5.32, for a total value of $25,727.52. Following the completion of the sale, the insider owned 272,247 shares in the company, valued at approximately $1,448,354.04. This represents a 1.75% 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. 8.90% of the stock is owned by company insiders.

Institutional Trading of Honest

Hedge funds and other institutional investors have recently bought and sold shares of the business. Millennium Management LLC grew its holdings in shares of Honest by 16.4% during the first quarter. Millennium Management LLC now owns 1,936,846 shares of the company's stock worth $9,103,000 after buying an additional 272,765 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Honest by 18.1% during the first quarter. Goldman Sachs Group Inc. now owns 1,064,179 shares of the company's stock worth $5,002,000 after buying an additional 163,380 shares during the last quarter. Rhumbline Advisers boosted its holdings in Honest by 18.1% in the 2nd quarter. Rhumbline Advisers now owns 134,690 shares of the company's stock valued at $686,000 after purchasing an additional 20,603 shares in the last quarter. Creative Planning boosted its holdings in Honest by 183.2% in the 2nd quarter. Creative Planning now owns 64,942 shares of the company's stock valued at $331,000 after purchasing an additional 42,008 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Honest by 6.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,916 shares of the company's stock valued at $235,000 after purchasing an additional 3,210 shares in the last quarter. 45.54% of the stock is currently owned by institutional investors and hedge funds.

Honest Company Profile

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.