Honest (NASDAQ:HNST) Hits New 12-Month High - Time to Buy?

Key Points

• Honest shares hit a new 52-week high of $5.86, rising 6.4% on heavy trading volume and moving well above its 50-day and 200-day moving averages.
• The company beat quarterly expectations, reporting adjusted EPS of $0.04 versus the $0.01 consensus and revenue of $80.19 million versus $77.83 million expected.
• Despite several analyst upgrades, Wall Street’s overall rating remains “Hold”, with a consensus price target of $4.84—below the current share price. Insiders have also sold about 294,149 shares worth $1.5 million over the past 90 days.

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The stock traded as high as $5.86 and last traded at $5.86, with a volume of 1746970 shares trading hands. The stock had previously closed at $5.51.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Freedom Capital upgraded shares of Honest from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 6th. Wall Street Zen raised shares of Honest from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Northland Securities set a $5.50 price target on shares of Honest in a research report on Thursday, August 6th. Weiss Ratings raised shares of Honest from a "sell (d-)" rating to a "sell (d)" rating in a research note on Tuesday, August 11th. Finally, Alliance Global Partners restated a "buy" rating on shares of Honest in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $4.84.

Honest Trading Up 6.4%

The company has a fifty day moving average of $4.16 and a 200-day moving average of $3.41. The stock has a market cap of $645.07 million, a PE ratio of -53.27 and a beta of 2.12.

Honest (NASDAQ:HNST - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.04 EPS for the quarter, beating analysts' consensus estimates of $0.01 by $0.03. The company had revenue of $80.19 million during the quarter, compared to analysts' expectations of $77.83 million. Honest had a positive return on equity of 4.31% and a negative net margin of 3.56%. As a group, research analysts anticipate that The Honest Company, Inc. will post 0.05 earnings per share for the current fiscal year.

Insider Transactions at Honest

In related news, SVP Jonathan Mayle sold 79,000 shares of the company's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $5.22, for a total transaction of $412,380.00. Following the sale, the senior vice president directly owned 370,155 shares of the company's stock, valued at $1,932,209.10. This represents a 17.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Brendan Sheehey sold 9,664 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $4.99, for a total transaction of $48,223.36. Following the completion of the transaction, the general counsel directly owned 706,224 shares of the company's stock, valued at $3,524,057.76. This represents a 1.35% decrease in their position. 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. In the last ninety days, insiders have sold 294,149 shares of company stock valued at $1,503,306. 9.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Honest

Several large investors have recently bought and sold shares of HNST. Allworth Financial LP purchased a new position in shares of Honest in the 2nd quarter valued at about $26,000. Caitong International Asset Management Co. Ltd increased its stake 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 buying an additional 6,599 shares during the period. Amicus Financial Advisors LLC acquired a new stake in Honest in the fourth quarter valued at approximately $29,000. Hibernia Wealth Partners LLC acquired a new stake in Honest in the fourth quarter valued at approximately $32,000. Finally, Legal & General Group Plc purchased a new position in Honest in the second quarter worth approximately $36,000. Hedge funds and other institutional investors own 45.54% of the company's stock.

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.

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