The Honest Company, Inc. (NASDAQ:HNST) Given Consensus Recommendation of "Hold" by 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 rating of "Hold" from the seven research firms that are currently covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $6.9583.

HNST has been the topic of a number of research reports. Telsey Advisory Group lowered 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. Zacks Research downgraded Honest from a "strong-buy" rating to a "hold" rating in a report on Friday, September 5th. Finally, 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 report on Friday, August 15th.

Honest Price Performance

NASDAQ HNST traded up $0.07 during trading hours on Wednesday, reaching $4.02. 3,862,233 shares of the stock traded hands, compared to its average volume of 3,216,348. The stock has a 50 day simple moving average of $4.27 and a two-hundred day simple moving average of $4.64. Honest has a 1 year low of $3.32 and a 1 year high of $8.97. The company has a market cap of $447.31 million, a price-to-earnings ratio of 80.42 and a beta of 2.33.

Honest (NASDAQ:HNST - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $0.03 earnings per share for the quarter, missing analysts' consensus estimates of $0.05 by ($0.02). Honest had a net margin of 1.66% and a return on equity of 3.84%. The firm had revenue of $93.46 million for the quarter, compared to analysts' expectations of $92.18 million. On average, sell-side analysts forecast that Honest will post -0.07 EPS for the current fiscal year.

Insider Transactions at Honest

In other news, insider Stephen Winchell sold 10,841 shares of Honest stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $3.65, for a total value of $39,569.65. Following the transaction, the insider owned 410,257 shares in the company, valued at approximately $1,497,438.05. The trade was a 2.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Brendan Sheehey sold 12,059 shares of Honest stock in a transaction dated 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 in the company, valued at approximately $2,075,346.20. This represents a 2.08% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 131,890 shares of company stock worth $481,399. Company insiders own 8.90% of the company's stock.

Institutional Inflows and Outflows

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

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.