Honest (NASDAQ:HNST) Stock Price Up 4.7% - Time to Buy?

Key Points

• Honest Company shares rose 4.7% to a last trade of $4.81, with trading volume notably down by 65% from average levels.
• Analysts rate the stock with an average rating of "Moderate Buy" and set a consensus price target of $7.70.
• The company reported earnings of $0.03 per share and revenue of $97.25 million for the last quarter, exceeding expectations.
• Insider trading activity included significant stock sales by CEO Carla Vernon and insider Stephen Winchell, reflecting a decrease in their ownership stakes.

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) shares were up 4.7% during trading on Friday . The company traded as high as $4.99 and last traded at $4.81. Approximately 894,112 shares traded hands during mid-day trading, a decline of 65% from the average daily volume of 2,559,467 shares. The stock had previously closed at $4.59.

Analyst Ratings Changes

Separately, Telsey Advisory Group restated a "market perform" rating and issued a $7.00 target price 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 issued a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $7.70.

Honest Price Performance

The stock has a 50 day simple moving average of $4.84 and a 200-day simple moving average of $5.13. The firm has a market cap of $519.78 million, a PE ratio of -235.75 and a beta of 2.35.

Honest (NASDAQ:HNST - Get Free Report) last issued its quarterly earnings data on Wednesday, May 7th. The company reported $0.03 EPS for the quarter, topping the consensus estimate of $0.02 by $0.01. Honest had a negative return on equity of 0.95% and a negative net margin of 0.38%. The company had revenue of $97.25 million during the quarter, compared to analyst estimates of $92.46 million. As a group, equities analysts predict that The Honest Company, Inc. will post -0.07 EPS for the current fiscal year.

Insider Activity

In other news, General Counsel Brendan Sheehey sold 12,017 shares of the firm's stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $5.32, for a total transaction of $63,930.44. Following the sale, the general counsel directly owned 580,647 shares in the company, valued at $3,089,042.04. This trade represents a 2.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Stephen Winchell sold 10,746 shares of Honest stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $5.32, for a total value of $57,168.72. Following the completion of the sale, the insider owned 421,098 shares in the company, valued at approximately $2,240,241.36. The trade was a 2.49% 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 valued at $881,662. 8.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in shares of Honest by 1.2% during the first quarter. Vanguard Group Inc. now owns 5,208,668 shares of the company's stock worth $24,481,000 after purchasing an additional 61,299 shares in the last quarter. Victory Capital Management Inc. grew its stake in shares of Honest by 98.8% during the first quarter. Victory Capital Management Inc. now owns 3,073,471 shares of the company's stock worth $14,445,000 after purchasing an additional 1,527,080 shares in the last quarter. D. E. Shaw & Co. Inc. grew its stake in shares of Honest by 589.7% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 2,397,636 shares of the company's stock worth $16,616,000 after purchasing an additional 2,049,981 shares in the last quarter. Renaissance Technologies LLC grew its stake in shares of Honest by 20.2% during the fourth quarter. Renaissance Technologies LLC now owns 2,372,200 shares of the company's stock worth $16,439,000 after purchasing an additional 398,603 shares in the last quarter. Finally, Nuveen LLC acquired a new position in shares of Honest during the first quarter worth $10,554,000. 45.54% of the stock is currently owned by institutional investors and hedge funds.

Honest Company Profile

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.