Honest (NASDAQ:HNST) Shares Down 4% - Here's What Happened

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report)'s stock price dropped 4% during mid-day trading on Monday . The company traded as low as $4.93 and last traded at $4.96. Approximately 1,559,127 shares changed hands during mid-day trading, a decline of 35% from the average daily volume of 2,383,690 shares. The stock had previously closed at $5.16.

Analysts Set New Price Targets

Separately, Telsey Advisory Group reaffirmed a "market perform" rating and issued a $7.00 price objective on shares of Honest in a research note on Thursday, May 8th. Two investment analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Honest presently has an average rating of "Moderate Buy" and a consensus price target of $7.70.

Honest Trading Down 1.0%

The firm has a market capitalization of $524.73 million, a price-to-earnings ratio of -119.00 and a beta of 2.39. The firm has a 50 day moving average price of $4.81 and a two-hundred day moving average price of $5.70.

Honest (NASDAQ:HNST - Get Free Report) last released its quarterly earnings data on Wednesday, May 7th. The company reported $0.03 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.01. The business had revenue of $97.25 million for the quarter, compared to analyst estimates of $92.46 million. Honest had a negative return on equity of 3.26% and a negative net margin of 1.13%. As a group, research analysts forecast that The Honest Company, Inc. will post -0.07 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO David Loretta sold 34,389 shares of the business's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $5.32, for a total transaction of $182,949.48. Following the transaction, the chief financial officer now directly owns 883,153 shares of the company's stock, valued at approximately $4,698,373.96. The trade was a 3.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, General Counsel Brendan Sheehey sold 12,017 shares of the business's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $5.32, for a total value of $63,930.44. Following the transaction, the general counsel now directly owns 580,647 shares in the company, valued at $3,089,042.04. This trade represents a 2.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 165,726 shares of company stock valued at $881,662. Corporate insiders own 8.90% of the company's stock.

Hedge Funds Weigh In On Honest

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Entropy Technologies LP purchased a new stake in Honest during the 4th quarter worth approximately $115,000. New York State Teachers Retirement System purchased a new stake in Honest during the 4th quarter worth approximately $52,000. Rhumbline Advisers increased its holdings in Honest by 12.0% during the 4th quarter. Rhumbline Advisers now owns 109,943 shares of the company's stock worth $762,000 after purchasing an additional 11,794 shares during the last quarter. Valmark Advisers Inc. increased its holdings in Honest by 1.7% during the 4th quarter. Valmark Advisers Inc. now owns 163,015 shares of the company's stock worth $1,130,000 after purchasing an additional 2,735 shares during the last quarter. Finally, Principal Financial Group Inc. purchased a new stake in Honest during the 4th quarter worth approximately $756,000. 45.54% of the stock is owned by institutional investors and hedge funds.

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.