Honest (NASDAQ:HNST) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Honest from “Hold” to “Buy,” while other analysts delivered mixed views. The consensus remains “Hold,” with an average price target of $4.38.
• Honest reported quarterly earnings of $0.04 per share and revenue of $80.19 million, beating estimates of $0.01 EPS and $77.83 million in revenue.
• Management raised its 2026 outlook to $319 million–$325 million in revenue and $23 million–$25 million in adjusted EBITDA, though analysts noted that the company still needs to demonstrate sustained execution.

Honest (NASDAQ:HNST - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

A number of other equities analysts have also recently issued reports on HNST. Telsey Advisory Group increased their target price on Honest from $4.00 to $5.00 and gave the stock a "market perform" rating in a report on Thursday. B. Riley Financial boosted their price target on Honest from $4.00 to $5.00 and gave the company a "buy" rating in a research note on Thursday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Honest in a research report on Tuesday, May 26th. Morgan Stanley set a $3.40 price objective on Honest in a research note on Thursday, May 7th. Finally, Alliance Global Partners reissued a "buy" rating on shares of Honest in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Honest currently has an average rating of "Hold" and an average target price of $4.38.

Honest Stock Up 0.7%

NASDAQ HNST opened at $5.46 on Friday. Honest has a twelve month low of $2.07 and a twelve month high of $5.84. The stock has a market cap of $601.04 million, a P/E ratio of -49.64 and a beta of 2.12. The company's 50-day simple moving average is $3.78 and its 200 day simple moving average is $3.19.

Honest (NASDAQ:HNST - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of $0.01 by $0.03. The firm had revenue of $80.19 million during the quarter, compared to analysts' expectations of $77.83 million. Honest had a negative net margin of 3.56% and a positive return on equity of 4.26%. Research analysts anticipate that Honest will post 0.1 earnings per share for the current year.

Insider Activity

In other news, CEO Carla Vernon sold 119,389 shares of Honest stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $3.14, for a total value of $374,881.46. Following the completion of the transaction, the chief executive officer owned 3,946,451 shares in the company, valued at approximately $12,391,856.14. The trade was a 2.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Curtiss James Bruce III sold 12,669 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $3.14, for a total value of $39,780.66. Following the completion of the transaction, the chief financial officer directly owned 526,157 shares in the company, valued at $1,652,132.98. The trade was a 2.35% 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 three months, insiders have sold 175,058 shares of company stock worth $550,591. 9.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Honest

Institutional investors and hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd grew its holdings in shares of Honest by 1,392.2% during the third quarter. Caitong International Asset Management Co. Ltd now owns 7,073 shares of the company's stock worth $26,000 after purchasing an additional 6,599 shares during the last quarter. Equity Wealth Partners LLC bought a new position in shares of Honest in the third quarter valued at about $37,000. CIBC Bancorp USA Inc. bought a new position in shares of Honest in the third quarter valued at about $39,000. Amicus Financial Advisors LLC acquired a new position in Honest during the 4th quarter worth about $29,000. Finally, State of Wyoming acquired a new position in Honest during the 2nd quarter worth about $61,000. Institutional investors and hedge funds own 45.54% of the company's stock.

Trending Headlines about 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, ahead of estimates ranging from $0.01 to $0.02 and up from $0.03 a year earlier. Revenue reached $80.19 million versus the $77.83 million consensus estimate. Honest Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Raised 2026 outlook: Management increased its fiscal-year 2026 forecast to $319 million-$325 million in revenue and $23 million-$25 million in adjusted EBITDA, signaling confidence in profitability and operating execution. Honest Outlines Raised FY2026 Outlook
• Positive Sentiment: Analyst earnings estimates increased: Northland Securities raised its Q3 and Q4 2026 EPS forecasts to $0.03 from $0.02, while maintaining a $0.10 full-year consensus estimate. Honest analyst estimates
• Neutral Sentiment: Strategic changes are showing progress: An analysis argues that Honest’s strategic exits are beginning to improve the business, but investors may need further evidence that the gains can be sustained. The Honest Company: Strategic Exits Are Starting To Work
• Negative Sentiment: Execution concerns remain: Another assessment says Honest is still awaiting more consistent improvements, highlighting the risk that recent operating gains may not yet represent a durable turnaround. The Honest Company - Awaiting More Consistent Improvements
• Neutral Sentiment: B. Riley raised its price target to $5 from $4 and retained a “Buy” rating, although the new target is below the recent trading level, limiting its immediate upside implication.

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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