Northland Securities Expects Increased Earnings for Honest

Key Points

• Northland Securities raised its Q1 2027 EPS estimate for Honest to $0.02 from $0.01; the current full-year consensus estimate is $0.09 per share.
• Honest’s latest quarter beat expectations, with EPS of $0.04 versus the $0.01 consensus and revenue of $80.19 million versus $77.83 million expected.
• Analyst sentiment has improved, including B. Riley’s price-target increase to $5 and several Buy or Strong Buy ratings, although MarketBeat’s overall consensus remains Hold with a $4.38 target price.

The Honest Company, Inc. (NASDAQ:HNST - Free Report) - Equities researchers at Northland Securities lifted their Q1 2027 EPS estimates for Honest in a note issued to investors on Thursday, August 6th. Northland Securities analyst O. Rickert now forecasts that the company will post earnings per share of $0.02 for the quarter, up from their previous estimate of $0.01. The consensus estimate for Honest's current full-year earnings is $0.09 per share.

HNST has been the topic of several other reports. Alliance Global Partners reissued a "buy" rating on shares of Honest in a research report on Thursday. B. Riley Financial boosted their price target on Honest from $4.00 to $5.00 and gave the stock a "buy" rating in a research report on Thursday. Wall Street Zen upgraded Honest from a "hold" rating to a "buy" rating in a research note on Saturday. Morgan Stanley set a $3.40 price target on Honest in a research note on Thursday, May 7th. Finally, Freedom Capital raised Honest from a "hold" rating to a "strong-buy" rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $4.38.

Honest Stock Performance

HNST stock opened at $5.46 on Monday. Honest has a 1 year low of $2.07 and a 1 year high of $5.84. The company has a fifty day simple moving average of $3.78 and a 200 day simple moving average of $3.20. The firm has a market cap of $601.04 million, a PE ratio of -49.64 and a beta of 2.12.

Honest (NASDAQ:HNST - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.01 by $0.03. The company had revenue of $80.19 million during the quarter, compared to the consensus estimate of $77.83 million. Honest had a negative net margin of 3.56% and a positive return on equity of 4.31%.

Insider Activity

In related news, CEO Carla Vernon sold 119,389 shares of the company's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $3.14, for a total transaction of $374,881.46. Following the completion of the sale, the chief executive officer directly owned 3,946,451 shares of the company's stock, valued at approximately $12,391,856.14. This represents a 2.94% 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 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 owned 715,888 shares in the company, valued at $2,247,888.32. This trade represents a 1.35% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 175,058 shares of company stock valued at $550,591 in the last quarter. 9.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Honest

Large investors have recently made changes to their positions in the business. UBS Group AG grew its holdings in Honest by 77.3% in the 4th quarter. UBS Group AG now owns 1,014,939 shares of the company's stock valued at $2,619,000 after buying an additional 442,542 shares during the last quarter. Wealthfront Advisers LLC lifted its holdings in shares of Honest by 24.0% during the fourth quarter. Wealthfront Advisers LLC now owns 25,177 shares of the company's stock worth $65,000 after buying an additional 4,873 shares during the last quarter. SG Americas Securities LLC lifted its holdings in shares of Honest by 122.3% during the fourth quarter. SG Americas Securities LLC now owns 36,461 shares of the company's stock worth $94,000 after buying an additional 20,059 shares during the last quarter. BlackRock Inc. acquired a new position in shares of Honest during the second quarter worth approximately $25,662,000. Finally, Deutsche Bank AG bought a new stake in shares of Honest in the second quarter valued at approximately $328,000. Institutional investors and hedge funds own 45.54% of the company's stock.

Honest News Summary

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.

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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