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

Key Points

• The Honest Company has received a consensus rating of "Hold", with four hold ratings and three buy ratings from analysts covering the stock.
• The company's stock price opened at $3.94 and has fluctuated between a one-year low of $3.32 and a high of $8.97.
• Recent transactions reveal insider selling, including the CEO and General Counsel each selling significant shares, indicating potential shifts in executive confidence.

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) has earned a consensus recommendation of "Hold" from the seven brokerages that are presently covering the firm, MarketBeat reports. Four equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $6.9583.

A number of research analysts have commented on the company. Morgan Stanley decreased their price objective on Honest from $5.50 to $4.25 and set an "equal weight" rating on the stock in a research report on Friday, August 15th. Telsey Advisory Group reduced their price target on Honest from $7.00 to $6.00 and set a "market perform" rating on the stock in a research report on Thursday, August 7th. Finally, Zacks Research lowered Honest from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 5th.

Honest Stock Performance

HNST traded up $0.07 during mid-day trading on Wednesday, reaching $4.02. The stock had a trading volume of 3,862,233 shares, compared to its average volume of 3,281,710. The stock has a market capitalization of $447.31 million, a P/E ratio of 80.42 and a beta of 2.32. The firm's fifty day simple moving average is $4.27 and its two-hundred day simple moving average is $4.65. Honest has a 52 week low of $3.32 and a 52 week high of $8.97.

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

Insider Buying and Selling

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Nuveen LLC bought a new position in shares of Honest during the first quarter worth about $10,554,000. D. E. Shaw & Co. Inc. grew its holdings in shares of Honest by 589.7% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 2,397,636 shares of the company's stock worth $16,616,000 after buying an additional 2,049,981 shares in the last quarter. GSA Capital Partners LLP grew its holdings in shares of Honest by 68.2% during the first quarter. GSA Capital Partners LLP now owns 272,284 shares of the company's stock worth $1,280,000 after buying an additional 110,408 shares in the last quarter. Jefferies Financial Group Inc. bought a new position in shares of Honest during the fourth quarter worth about $932,000. Finally, Nuveen Asset Management LLC grew its holdings in shares of Honest by 103.5% during the fourth quarter. Nuveen Asset Management LLC now owns 2,046,868 shares of the company's stock worth $14,185,000 after buying an additional 1,041,040 shares in the last quarter. 45.54% of the stock is currently owned by institutional investors.

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.