Northland Securities Weighs in on Honest Q1 Earnings

Key Points

• Northland Securities initiated its Q1 2027 view on Honest with an EPS estimate of $0.01, and it projects full-year 2027 EPS at $0.08.
• Honest’s latest quarterly results matched expectations, with $0.01 EPS and $78.1 million in revenue, topping the $76.25 million revenue estimate.
• Analyst sentiment remains cautious overall: Honest has a consensus Hold rating and an average price target of $3.47, while the stock recently traded at $3.90.

The Honest Company, Inc. (NASDAQ:HNST - Free Report) - Northland Securities issued their Q1 2027 earnings per share (EPS) estimates for shares of Honest in a report issued on Wednesday, July 8th. Northland Securities analyst O. Rickert expects that the company will post earnings per share of $0.01 for the quarter. The consensus estimate for Honest's current full-year earnings is $0.10 per share. Northland Securities also issued estimates for Honest's Q2 2027 earnings at $0.02 EPS, Q3 2027 earnings at $0.02 EPS, Q4 2027 earnings at $0.02 EPS and FY2027 earnings at $0.08 EPS.

Honest (NASDAQ:HNST - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.01 earnings per share for the quarter, hitting the consensus estimate of $0.01. Honest had a positive return on equity of 3.52% and a negative net margin of 5.39%.The firm had revenue of $78.10 million during the quarter, compared to analysts' expectations of $76.25 million.

A number of other analysts also recently issued reports on HNST. Morgan Stanley set a $3.40 price target on shares of Honest in a report on Thursday, May 7th. Weiss Ratings restated a "sell (d-)" rating on shares of Honest in a report on Tuesday, May 26th. Zacks Research raised shares of Honest from a "strong sell" rating to a "hold" rating in a research report on Thursday, March 26th. Wall Street Zen upgraded shares of Honest from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Finally, Telsey Advisory Group reissued a "market perform" rating and set a $4.00 price target on shares of Honest in a report on Thursday, May 7th. Two 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. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $3.47.

Honest Stock Performance

NASDAQ HNST opened at $3.90 on Thursday. Honest has a one year low of $2.07 and a one year high of $5.28. The stock has a 50-day moving average of $3.52 and a 200 day moving average of $2.99. The company has a market capitalization of $429.31 million, a price-to-earnings ratio of -22.94 and a beta of 2.11.

Institutional Investors Weigh In On Honest

A number of hedge funds have recently modified their holdings of the business. Mak Capital One LLC bought a new position in Honest in the 4th quarter worth $9,104,000. Balyasny Asset Management L.P. grew its holdings in Honest by 796.2% during the fourth quarter. Balyasny Asset Management L.P. now owns 2,006,646 shares of the company's stock valued at $5,177,000 after purchasing an additional 1,782,742 shares during the period. Portolan Capital Management LLC increased its position in Honest by 11.4% in the third quarter. Portolan Capital Management LLC now owns 6,928,004 shares of the company's stock worth $25,495,000 after buying an additional 710,651 shares in the last quarter. Goldman Sachs Group Inc. increased its position in Honest by 70.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,520,331 shares of the company's stock worth $3,922,000 after buying an additional 627,537 shares in the last quarter. Finally, UBS Group AG raised its stake in shares of Honest by 77.3% in the fourth quarter. UBS Group AG now owns 1,014,939 shares of the company's stock worth $2,619,000 after buying an additional 442,542 shares during the period. Institutional investors own 45.54% of the company's stock.

Insider Buying and Selling at Honest

In related news, CEO Carla Vernon sold 119,389 shares of the business's stock in a transaction that occurred 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 in the company, valued at approximately $12,391,856.14. The trade was a 2.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 company's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $3.14, for a total transaction of $39,780.66. Following the sale, the chief financial officer directly owned 526,157 shares of the company's stock, valued at approximately $1,652,132.98. This represents a 2.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 175,058 shares of company stock worth $550,591 over the last quarter. Company insiders own 9.40% of the company's stock.

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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