Honest (NASDAQ:HNST) Sees Large Volume Increase After Analyst Upgrade

Key Points

• Analyst support lifted trading activity: Telsey Advisory Group raised its Honest price target from $4 to $5 while maintaining a Market Perform rating. Shares traded at $5.63, up from the prior close of $5.42, with roughly 1.26 million shares changing hands.
• Recent results and guidance improved: Honest beat quarterly earnings expectations with adjusted EPS of $0.04 and raised fiscal 2026 guidance to $319 million–$325 million in revenue and $23 million–$25 million in adjusted EBITDA. However, total quarterly revenue declined 10.9% year over year as the company exited certain products and businesses.
• Analyst sentiment remains mixed: The stock has an average rating of Hold and an average price target of $4.38, despite Buy ratings from Alliance Global Partners and B. Riley. Insiders have sold 175,058 shares worth about $551,000 over the past 90 days.

Shares of The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) saw strong trading volume on Friday after Telsey Advisory Group raised their price target on the stock from $4.00 to $5.00. Telsey Advisory Group currently has a market perform rating on the stock. Approximately 1,262,647 shares changed hands during mid-day trading, a decline of 30% from the previous session's volume of 1,791,602 shares.The stock last traded at $5.63 and had previously closed at $5.42.

HNST has been the topic of several other research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Honest in a research note on Tuesday, May 26th. Alliance Global Partners reissued a "buy" rating on shares of Honest in a research note on Thursday. B. Riley Financial raised their target price on shares of Honest from $4.00 to $5.00 and gave the stock a "buy" rating in a report on Thursday. Wall Street Zen upgraded shares of Honest from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Finally, Morgan Stanley set a $3.40 price target on Honest in a report on Thursday, May 7th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $4.38.

Insider Buying and Selling

In other Honest news, CFO Curtiss James Bruce III sold 12,669 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 transaction of $39,780.66. Following the sale, the chief financial officer owned 526,157 shares in the company, valued at approximately $1,652,132.98. The trade was a 2.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Brendan Sheehey sold 9,784 shares of Honest stock in a transaction that occurred 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 completion of the transaction, the general counsel directly owned 715,888 shares in the company, valued at approximately $2,247,888.32. This trade represents a 1.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 175,058 shares of company stock worth $550,591. Company insiders own 9.40% of the company's stock.

Key Headlines Impacting Honest

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, above the roughly $0.01–$0.02 analyst consensus. Revenue was $83.3 million, while organic revenue increased 6.7%. The Honest Company Reports Second Quarter 2026 Results
• Positive Sentiment: Profitability and cash flow indicators improved: Gross margin rose 800 basis points to 48.4%, adjusted EBITDA reached $7.8 million, and net income increased to $10.7 million. Cash and equivalents climbed to $105.9 million, strengthening the balance sheet for reinvestment. Honest Outlines Raised FY2026 Outlook
• Positive Sentiment: Full-year guidance was raised: Management now expects fiscal 2026 revenue of $319 million to $325 million, above the approximately $310.1 million consensus, and adjusted EBITDA of $23 million to $25 million. The stronger outlook suggests that higher-margin products and strategic exits are beginning to improve the business mix. The Honest Company: Strategic Exits Are Starting To Work
• Positive Sentiment: Analyst earnings estimates moved higher: Northland Securities raised its Q3 and Q4 2026 EPS forecasts to $0.03 per share from $0.02, while B. Riley raised its price target to $5 from $4 and maintained a Buy rating. B. Riley Price Target Report
• Neutral Sentiment: Investors are weighing growth quality: Management emphasized organic growth and margin expansion, but analysts continue to seek evidence that these gains can be sustained. The Honest Company: Awaiting More Consistent Improvements
• Negative Sentiment: Headline revenue declined: Total Q2 revenue fell 10.9% from the prior year, despite organic growth, reflecting the impact of product and business exits. Continued execution will be important because B. Riley’s $5 target remains below the recent trading level.

Institutional Trading of Honest

Large investors have recently modified their holdings of the company. State of Wyoming bought a new stake in Honest during the second quarter valued at about $75,000. Bank of America Corp DE boosted its holdings in Honest by 28.4% in the 1st quarter. Bank of America Corp DE now owns 223,099 shares of the company's stock valued at $656,000 after purchasing an additional 49,342 shares during the period. Amicus Financial Advisors LLC bought a new stake in Honest in the 4th quarter valued at $29,000. Alpine Global Management LLC acquired a new stake in Honest in the 4th quarter worth $86,000. Finally, Virtu Financial LLC acquired a new stake in Honest in the 4th quarter worth $448,000. 45.54% of the stock is owned by institutional investors.

Honest Trading Up 5.6%

The firm's fifty day moving average price is $3.74 and its 200-day moving average price is $3.17. The company has a market cap of $629.77 million, a P/E ratio of -51.95 and a beta of 2.12.

Honest (NASDAQ:HNST - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.03. Honest had a negative net margin of 3.56% and a positive return on equity of 4.26%. The business had revenue of $80.19 million during the quarter, compared to analysts' expectations of $77.83 million. As a group, research analysts forecast that The Honest Company, Inc. will post 0.1 earnings per share for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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