Honest (NASDAQ:HNST) Reaches New 12-Month High on Better-Than-Expected Earnings

Key Points

• Honest exceeded quarterly expectations, reporting earnings of $0.04 per share versus the $0.01 consensus estimate and revenue of $80.19 million compared with $77.83 million expected.
• The stock reached a new 12-month high and was reported up 45.9% following the earnings release, although analysts maintained a consensus “Hold” rating with an average price target of $3.47.
• Insiders sold 175,058 shares worth approximately $550,591 over the past 90 days, while institutional investors own 45.54% of the company and several major funds increased their positions.

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report)'s share price hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $4.54 and last traded at $5.5820, with a volume of 343672 shares traded. The stock had previously closed at $3.85.

The company reported $0.04 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.03. Honest had a positive return on equity of 3.52% and a negative net margin of 5.39%.The firm had revenue of $80.19 million during the quarter, compared to analyst estimates of $77.83 million.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on HNST. Morgan Stanley set a $3.40 target price on shares of Honest in a research note on Thursday, May 7th. Alliance Global Partners reaffirmed a "buy" rating on shares of Honest in a report on Thursday, May 7th. Telsey Advisory Group reiterated a "market perform" rating and issued a $4.00 price objective on shares of Honest in a research report on Thursday, May 7th. Weiss Ratings restated a "sell (d-)" rating on shares of Honest in a research report on Tuesday, May 26th. Finally, Wall Street Zen raised Honest from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $3.47.

Insider Activity at Honest

In other Honest news, General Counsel Brendan Sheehey sold 9,784 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 $30,721.76. Following the transaction, the general counsel owned 715,888 shares of the company's stock, valued at approximately $2,247,888.32. This represents a 1.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Stephen Winchell sold 12,886 shares of the business's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $3.14, for a total value of $40,462.04. Following the sale, the insider directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 175,058 shares of company stock worth $550,591. Company insiders own 9.40% of the company's stock.

Institutional Trading of Honest

A number of large investors have recently bought and sold shares of the business. Mak Capital One LLC acquired a new position in shares of Honest in the fourth quarter valued at approximately $9,104,000. Geode Capital Management LLC raised its holdings in shares of Honest by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 2,323,572 shares of the company's stock worth $5,996,000 after acquiring an additional 28,579 shares during the period. Dimensional Fund Advisors LP lifted its position in Honest by 8.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,259,540 shares of the company's stock valued at $8,315,000 after acquiring an additional 171,425 shares in the last quarter. Balyasny Asset Management L.P. lifted its position in Honest by 796.2% in the 4th quarter. Balyasny Asset Management L.P. now owns 2,006,646 shares of the company's stock valued at $5,177,000 after acquiring an additional 1,782,742 shares in the last quarter. Finally, Millennium Management LLC boosted its stake in Honest by 16.4% in the 1st quarter. Millennium Management LLC now owns 1,936,846 shares of the company's stock worth $9,103,000 after purchasing an additional 272,765 shares during the period. 45.54% of the stock is owned by institutional investors.

Honest Trading Up 45.9%

The stock's 50 day moving average is $3.70 and its two-hundred day moving average is $3.15. The stock has a market capitalization of $618.32 million, a price-to-earnings ratio of -33.35 and a beta of 2.12.

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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