Honest (NASDAQ:HNST) Earns “Market Perform” Rating from Telsey Advisory Group

Honest (NASDAQ:HNST)‘s stock had its “market perform” rating reiterated by analysts at Telsey Advisory Group in a report released on Thursday,Benzinga reports. They currently have a $3.00 target price on the stock. Telsey Advisory Group’s target price points to a potential upside of 7.14% from the company’s previous close.

Several other research firms have also commented on HNST. Morgan Stanley reduced their price target on shares of Honest from $4.25 to $3.00 and set an “equal weight” rating on the stock in a research report on Wednesday, November 19th. Lake Street Capital lowered shares of Honest from a “buy” rating to a “hold” rating and set a $3.00 price target on the stock. in a research note on Thursday, November 6th. JPMorgan Chase & Co. restated an “underweight” rating on shares of Honest in a research report on Friday, January 16th. Zacks Research lowered shares of Honest from a “strong-buy” rating to a “hold” rating in a research report on Thursday, November 6th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Honest in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $3.00.

Honest Stock Performance

NASDAQ:HNST opened at $2.80 on Thursday. The stock’s fifty day moving average is $2.47 and its 200 day moving average is $3.08. The firm has a market capitalization of $314.92 million, a PE ratio of -20.00 and a beta of 2.30. Honest has a fifty-two week low of $2.07 and a fifty-two week high of $5.62.

Honest (NASDAQ:HNST) last issued its earnings results on Wednesday, February 25th. The company reported ($0.21) EPS for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.23). Honest had a positive return on equity of 4.47% and a negative net margin of 4.22%.The company had revenue of $88.04 million for the quarter, compared to analysts’ expectations of $88.57 million. Equities analysts forecast that Honest will post -0.07 EPS for the current year.

Honest announced that its board has authorized a share buyback plan on Friday, February 20th that allows the company to repurchase $25.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 9.9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of HNST. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Honest by 6.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,916 shares of the company’s stock valued at $235,000 after buying an additional 3,210 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in Honest by 18.7% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 21,366 shares of the company’s stock worth $81,000 after acquiring an additional 3,365 shares during the last quarter. Osaic Holdings Inc. increased its position in Honest by 33.9% in the 2nd quarter. Osaic Holdings Inc. now owns 14,577 shares of the company’s stock valued at $74,000 after acquiring an additional 3,693 shares in the last quarter. CWM LLC increased its position in Honest by 17.1% in the 3rd quarter. CWM LLC now owns 27,342 shares of the company’s stock valued at $101,000 after acquiring an additional 3,985 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its stake in shares of Honest by 14.9% in the second quarter. The Manufacturers Life Insurance Company now owns 33,734 shares of the company’s stock worth $172,000 after acquiring an additional 4,378 shares during the last quarter. 45.54% of the stock is owned by institutional investors and hedge funds.

Honest News Roundup

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Board-authorized $25 million share repurchase (up to ~9.9% of shares) — buybacks can support the stock by reducing float and signal management believes shares are undervalued. RTT News
• Positive Sentiment: Analysts and write-ups highlight a stronger cash position and a debt-free balance sheet after Q4, arguing valuation looks cheap (0.57x forward EV/Sales) and margin expansion could drive rerating. This framing supports a constructive outlook if execution continues. The Honest Company: Strong Cash Position As Transformation Gains Traction
• Neutral Sentiment: Q4 2025 results were described as broadly in-line on revenue but mixed on metrics — revenue roughly met expectations while margins and EPS showed pressure as the company navigates a transformation. Investors should watch execution and margin progress for signal of recovery. HNST Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Telsey Advisory Group reaffirmed a “market perform” rating with a $3.00 price target — a modest upside from current levels but not a bullish endorsement. Telsey Advisory Group Coverage (Benzinga)
• Negative Sentiment: FY2026 revenue guidance was lowered to $306.0–$312.0 million vs. consensus near $340 million — a sizable shortfall that explains weaker near-term growth expectations and pressure on the stock.
• Negative Sentiment: Zacks Research downgraded HNST from “hold” to “strong sell,” indicating heightened analyst concern about near-term fundamentals and contributing to negative sentiment. Zacks Research Downgrade TickerReport Coverage

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.