The Honest Company, Inc. (NASDAQ:HNST) Given Average Recommendation of "Hold" by Brokerages

Key Points

• The Honest Company has an average analyst rating of “Hold” from eight covering firms, with a consensus 1-year price target of about $3.47.
• The stock was last trading at $3.94, near its 50-day moving average, and the company’s recent quarterly results beat revenue expectations while matching EPS estimates.
• Insiders have been selling shares recently, including CEO Carla Vernon and CFO Curtiss James Bruce III, while institutional investors continue to hold a significant stake in the company.

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) has received an average rating of "Hold" from the eight research firms that are presently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating on the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $3.4667.

HNST has been the subject of a number of recent analyst reports. Zacks Research upgraded shares of Honest from a "strong sell" rating to a "hold" rating in a report on Thursday, March 26th. Morgan Stanley set a $3.40 target price on Honest in a research note on Thursday, May 7th. Wall Street Zen raised Honest from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Telsey Advisory Group reiterated a "market perform" rating and set a $4.00 price target on shares of Honest in a report on Thursday, May 7th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Honest in a research report on Tuesday, May 26th.

Honest Trading Up 0.0%

Honest stock traded up $0.00 during trading hours on Tuesday, reaching $3.94. 113,678 shares of the company were exchanged, compared to its average volume of 1,752,128. Honest has a 12 month low of $2.07 and a 12 month high of $5.28. The stock has a 50-day moving average of $3.50 and a 200 day moving average of $2.97. The firm has a market cap of $433.83 million, a price-to-earnings ratio of -23.26 and a beta of 2.11.

Honest (NASDAQ:HNST - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.01 EPS for the quarter, meeting analysts' consensus estimates of $0.01. Honest had a negative net margin of 5.39% and a positive return on equity of 3.52%. The company had revenue of $78.10 million for the quarter, compared to analyst estimates of $76.25 million. As a group, research analysts forecast that Honest will post 0.1 EPS for the current year.

Insider Activity at Honest

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 transaction, the chief executive officer directly owned 3,946,451 shares in the company, valued at $12,391,856.14. This represents a 2.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 stock in a transaction 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 completion of the sale, the chief financial officer directly owned 526,157 shares of the company's stock, valued at approximately $1,652,132.98. This trade 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. Over the last ninety days, insiders sold 175,058 shares of company stock worth $550,591. 9.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Honest

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Portolan Capital Management LLC lifted its position in shares of Honest by 11.4% in the 3rd quarter. Portolan Capital Management LLC now owns 6,928,004 shares of the company's stock worth $25,495,000 after acquiring an additional 710,651 shares during the period. Mak Capital One LLC bought a new stake in shares of Honest during the fourth quarter valued at approximately $9,104,000. ArrowMark Colorado Holdings LLC raised its stake in shares of Honest by 5.3% in the third quarter. ArrowMark Colorado Holdings LLC now owns 2,999,546 shares of the company's stock valued at $11,038,000 after purchasing an additional 151,000 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Honest by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 2,323,572 shares of the company's stock valued at $5,996,000 after purchasing an additional 28,579 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in Honest by 8.2% in the third quarter. Dimensional Fund Advisors LP now owns 2,259,540 shares of the company's stock worth $8,315,000 after purchasing an additional 171,425 shares during the period. 45.54% of the stock is currently owned by institutional investors.

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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