Honest (NASDAQ:HNST) Rating Increased to Strong-Buy at Freedom Capital

Key Points

• Freedom Capital upgraded Honest to “strong buy” from “hold,” but broader analyst sentiment remains mixed, with a consensus “hold” rating and an average price target of $4.38.
• Honest reported quarterly results above expectations, posting $0.04 EPS versus a $0.01 estimate and revenue of $80.19 million versus $77.83 million expected.
• The stock opened at $5.46, near its one-year high of $5.84, while insiders sold $550,591 worth of shares last quarter; analysts noted that the company’s turnaround is progressing but still requires more consistent execution.

Honest (NASDAQ:HNST - Get Free Report) was upgraded by analysts at Freedom Capital from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Thursday,Zacks.com reports.

A number of other research analysts have also recently issued reports on the company. Northland Securities set a $5.50 price target on Honest in a report on Thursday. Morgan Stanley set a $3.40 price objective on shares of Honest in a report on Thursday, May 7th. Weiss Ratings restated a "sell (d-)" rating on shares of Honest in a research report on Tuesday, May 26th. Alliance Global Partners reaffirmed a "buy" rating on shares of Honest in a research note on Thursday. Finally, Telsey Advisory Group boosted their target price on shares of Honest from $4.00 to $5.00 and gave the stock a "market perform" rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $4.38.

Honest Price Performance

NASDAQ HNST opened at $5.46 on Thursday. The stock's 50 day simple moving average is $3.78 and its 200 day simple moving average is $3.19. Honest has a one year low of $2.07 and a one year high of $5.84. The firm has a market cap of $601.04 million, a PE ratio of -49.64 and a beta of 2.12.

Honest (NASDAQ:HNST - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.03. The firm had revenue of $80.19 million during the quarter, compared to the consensus estimate of $77.83 million. Honest had a positive return on equity of 4.26% and a negative net margin of 3.56%. As a group, equities analysts expect that Honest will post 0.1 earnings per share for the current year.

Insider Transactions at Honest

In other news, insider Stephen Winchell sold 12,886 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $3.14, for a total transaction of $40,462.04. Following the transaction, the insider owned 483,293 shares of the company's stock, valued at $1,517,540.02. This represents a 2.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Carla Vernon sold 119,389 shares of the firm's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $3.14, for a total value of $374,881.46. Following the completion of the transaction, the chief executive officer owned 3,946,451 shares in the company, valued at approximately $12,391,856.14. This represents a 2.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 175,058 shares of company stock valued at $550,591 over the last quarter. Corporate insiders own 9.40% of the company's stock.

Institutional Trading of Honest

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd boosted its stake in shares of 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 purchasing an additional 6,599 shares during the last quarter. Equity Wealth Partners LLC bought a new stake in shares of Honest during the third quarter worth approximately $37,000. CIBC Bancorp USA Inc. bought a new stake in shares of Honest during the third quarter worth approximately $39,000. Amicus Financial Advisors LLC acquired a new position in Honest in the fourth quarter valued at approximately $29,000. Finally, State of Wyoming acquired a new position in Honest in the second quarter valued at approximately $61,000. 45.54% of the stock is owned by institutional investors.

Key Honest News

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Q2 results beat expectations: Honest reported adjusted earnings of $0.04 per share, ahead of estimates ranging from $0.01 to $0.02 and up from $0.03 a year earlier. Revenue reached $80.19 million versus the $77.83 million consensus estimate. Honest Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Raised 2026 outlook: Management increased its fiscal-year 2026 forecast to $319 million-$325 million in revenue and $23 million-$25 million in adjusted EBITDA, signaling confidence in profitability and operating execution. Honest Outlines Raised FY2026 Outlook
• Positive Sentiment: Analyst earnings estimates increased: Northland Securities raised its Q3 and Q4 2026 EPS forecasts to $0.03 from $0.02, while maintaining a $0.10 full-year consensus estimate. Honest analyst estimates
• Neutral Sentiment: Strategic changes are showing progress: An analysis argues that Honest’s strategic exits are beginning to improve the business, but investors may need further evidence that the gains can be sustained. The Honest Company: Strategic Exits Are Starting To Work
• Negative Sentiment: Execution concerns remain: Another assessment says Honest is still awaiting more consistent improvements, highlighting the risk that recent operating gains may not yet represent a durable turnaround. The Honest Company - Awaiting More Consistent Improvements
• Neutral Sentiment: B. Riley raised its price target to $5 from $4 and retained a “Buy” rating, although the new target is below the recent trading level, limiting its immediate upside implication.

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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