Honest (NASDAQ:HNST) Trading Down 4% - Should You Sell?

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) traded down 4% during mid-day trading on Wednesday . The stock traded as low as $4.70 and last traded at $4.72. 862,669 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 2,462,795 shares. The stock had previously closed at $4.91.

Analyst Ratings Changes

Separately, Telsey Advisory Group reissued a "market perform" rating and issued a $7.00 price target on shares of Honest in a report on Thursday, May 8th. Two equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Honest currently has a consensus rating of "Moderate Buy" and a consensus price target of $7.70.

Honest Trading Down 3.6%

The stock has a market cap of $510.96 million, a PE ratio of -231.75 and a beta of 2.35. The firm has a fifty day simple moving average of $4.93 and a two-hundred day simple moving average of $5.32.

Honest (NASDAQ:HNST - Get Free Report) last announced its earnings results on Wednesday, May 7th. The company reported $0.03 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.01. Honest had a negative net margin of 0.38% and a negative return on equity of 0.95%. The business had revenue of $97.25 million for the quarter, compared to the consensus estimate of $92.46 million. Equities analysts forecast that The Honest Company, Inc. will post -0.07 earnings per share for the current year.

Insider Activity

In other news, CFO David Loretta sold 34,389 shares of the company's stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $5.32, for a total value of $182,949.48. Following the completion of the transaction, the chief financial officer directly owned 883,153 shares in the company, valued at approximately $4,698,373.96. This represents a 3.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Jonathan Mayle sold 4,788 shares of the firm's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $5.32, for a total value of $25,472.16. Following the transaction, the senior vice president directly owned 302,952 shares in the company, valued at approximately $1,611,704.64. This represents a 1.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 165,726 shares of company stock worth $881,662. Corporate insiders own 8.90% of the company's stock.

Institutional Trading of Honest

Hedge funds and other institutional investors have recently bought and sold shares of the company. SBI Securities Co. Ltd. bought a new stake in shares of Honest in the 4th quarter worth approximately $26,000. Summit Securities Group LLC raised its position in Honest by 6,101.8% in the 1st quarter. Summit Securities Group LLC now owns 6,822 shares of the company's stock worth $32,000 after purchasing an additional 6,712 shares during the period. DRW Securities LLC bought a new stake in Honest in the first quarter worth $58,000. Aigen Investment Management LP purchased a new stake in Honest during the first quarter valued at about $64,000. Finally, Bailard Inc. bought a new position in shares of Honest during the first quarter valued at about $78,000. Hedge funds and other institutional investors own 45.54% 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.