The Honest Company, Inc. (NASDAQ:HNST) Receives Average Rating of "Hold" from Analysts

Key Points

• The Honest Company has received an average rating of "Hold" from analysts, with five hold ratings and three buy ratings from the eight firms currently covering the stock.
• The company's stock has a current price of $3.67, with a market cap of $408.36 million and a 52-week low of $3.32.
• Insiders have sold a notable amount of stock recently, with Stephen Winchell selling 10,841 shares, reducing his ownership by 2.57%.

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) has received an average recommendation of "Hold" from the eight ratings firms that are presently covering the stock, MarketBeat.com reports. Five analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 1-year target price among brokers that have covered the stock in the last year is $6.9583.

Several equities research analysts have recently commented on HNST shares. Zacks Research cut Honest from a "strong-buy" rating to a "hold" rating in a research note on Friday, September 5th. Weiss Ratings restated a "hold (c-)" rating on shares of Honest in a research report on Saturday, September 27th. Morgan Stanley lowered their target price on shares of Honest from $5.50 to $4.25 and set an "equal weight" rating on the stock in a report on Friday, August 15th. Finally, Telsey Advisory Group dropped their price target on shares of Honest from $7.00 to $6.00 and set a "market perform" rating on the stock in a research note on Thursday, August 7th.

Honest Price Performance

NASDAQ HNST opened at $3.67 on Friday. The firm has a market cap of $408.36 million, a P/E ratio of 73.41 and a beta of 2.29. Honest has a 52-week low of $3.32 and a 52-week high of $8.97. The business's 50-day moving average price is $4.01 and its 200 day moving average price is $4.52.

Honest (NASDAQ:HNST - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.05 by ($0.02). Honest had a net margin of 1.66% and a return on equity of 3.84%. The company had revenue of $93.46 million for the quarter, compared to analysts' expectations of $92.18 million. As a group, analysts anticipate that Honest will post -0.07 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Stephen Winchell sold 10,841 shares of the company's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $3.65, for a total transaction of $39,569.65. Following the transaction, the insider owned 410,257 shares of the company's stock, valued at $1,497,438.05. This represents a 2.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Brendan Sheehey sold 12,059 shares of the stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $3.65, for a total value of $44,015.35. Following the completion of the transaction, the general counsel owned 568,588 shares of the company's stock, valued at $2,075,346.20. The trade was a 2.08% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 131,890 shares of company stock worth $481,399. Company insiders own 8.90% of the company's stock.

Hedge Funds Weigh In On Honest

A number of institutional investors and hedge funds have recently made changes to their positions in HNST. Nuveen LLC acquired a new stake in shares of Honest in the first quarter valued at about $10,554,000. Goldman Sachs Group Inc. lifted its position in shares of Honest by 18.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,064,179 shares of the company's stock valued at $5,002,000 after acquiring an additional 163,380 shares during the period. GSA Capital Partners LLP boosted its stake in shares of Honest by 68.2% during the 1st quarter. GSA Capital Partners LLP now owns 272,284 shares of the company's stock worth $1,280,000 after acquiring an additional 110,408 shares in the last quarter. Strs Ohio acquired a new stake in shares of Honest in the 1st quarter worth approximately $3,550,000. Finally, Inspire Investing LLC acquired a new stake in shares of Honest in the 1st quarter worth approximately $341,000. 45.54% of the stock is owned by institutional investors and hedge funds.

Honest Company Profile

The Honest Company, Inc manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. The company also offers baby clothing and nursery bedding products. It sells its products through digital and retail sales channels, such as its website and third-party ecommerce sites, as well as brick and mortar retailers.

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