Honest (NASDAQ:HNST) Sets New 1-Year High - Here's What Happened

Key Points

• Honest shares reached a new 52-week high of $5.96 and last traded at $5.934, up from the prior close of $5.85. The stock has risen above its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but has improved, with several firms raising price targets to $5.00–$5.70. Despite recent upgrades, the consensus rating is still “Hold,” with an average target price of $4.84.
• Honest exceeded quarterly expectations, reporting $0.04 in earnings per share versus a $0.01 consensus estimate and revenue of $80.19 million versus $77.83 million expected. However, insiders sold 294,149 shares worth approximately $1.5 million over the past 90 days.

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report)'s share price reached a new 52-week high on Friday . The company traded as high as $5.96 and last traded at $5.9340, with a volume of 401586 shares traded. The stock had previously closed at $5.85.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Weiss Ratings raised Honest from a "sell (d-)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Telsey Advisory Group raised their price target on Honest from $4.00 to $5.00 and gave the stock a "market perform" rating in a report on Thursday, August 6th. 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 note on Thursday, August 6th. Morgan Stanley upped their price objective on shares of Honest from $3.40 to $5.70 and gave the company an "equal weight" rating in a report on Wednesday, August 12th. Finally, Freedom Capital raised shares of Honest from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Honest presently has an average rating of "Hold" and a consensus target price of $4.84.

Honest Stock Up 1.3%

The stock has a market cap of $652.22 million, a PE ratio of -53.86 and a beta of 2.24. The stock has a 50-day moving average of $4.45 and a 200 day moving average of $3.59.

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

Insider Activity

In related news, SVP Jonathan Mayle sold 79,000 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $5.22, for a total value of $412,380.00. Following the completion of the transaction, the senior vice president directly owned 370,155 shares in the company, valued at $1,932,209.10. The trade was a 17.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, General Counsel Brendan Sheehey sold 9,664 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $4.99, for a total transaction of $48,223.36. Following the sale, the general counsel directly owned 706,224 shares in the company, valued at $3,524,057.76. This trade represents a 1.35% 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 90 days, insiders sold 294,149 shares of company stock worth $1,503,306. 9.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Honest

Hedge funds have recently bought and sold shares of the business. Allworth Financial LP purchased a new stake in shares of Honest in the second quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd lifted its position in shares of Honest by 1,392.2% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 7,073 shares of the company's stock valued at $26,000 after buying an additional 6,599 shares in the last quarter. Legal & General Group Plc acquired a new stake in Honest in the 2nd quarter valued at $36,000. Equity Wealth Partners LLC acquired a new stake in Honest in the 3rd quarter valued at $37,000. Finally, CIBC Bancorp USA Inc. purchased a new stake in Honest in the 3rd quarter worth $39,000. Hedge funds and other institutional investors own 45.54% 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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