The Honest Company, Inc. (NASDAQ:HNST) Receives Average Recommendation of “Reduce” from Brokerages

The Honest Company, Inc. (NASDAQ:HNST) has been assigned an average recommendation of “Reduce” from the seven research firms that are covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation and one has given a buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $3.00.

Several research firms have recently weighed in on HNST. Morgan Stanley decreased their price objective on shares of Honest from $4.25 to $3.00 and set an “equal weight” rating for the company in a report on Wednesday, November 19th. JPMorgan Chase & Co. reiterated an “underweight” rating on shares of Honest in a research note on Friday, January 16th. Lake Street Capital cut Honest from a “buy” rating to a “hold” rating and set a $3.00 price target on the stock. in a report on Thursday, November 6th. Telsey Advisory Group reaffirmed a “market perform” rating and issued a $3.00 price objective on shares of Honest in a report on Thursday, February 26th. Finally, B. Riley Financial reiterated a “buy” rating on shares of Honest in a research report on Thursday, November 6th.

Honest Price Performance

Shares of NASDAQ:HNST opened at $2.84 on Wednesday. Honest has a 1 year low of $2.07 and a 1 year high of $5.55. The company has a market cap of $319.41 million, a P/E ratio of -20.29 and a beta of 2.27. The stock’s fifty day moving average price is $2.47 and its 200-day moving average price is $3.06.

Honest (NASDAQ:HNST) last issued its earnings results on Wednesday, February 25th. The company reported ($0.21) earnings per share for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.23). The business had revenue of $88.04 million during the quarter, compared to analysts’ expectations of $88.57 million. Honest had a positive return on equity of 4.57% and a negative net margin of 4.22%. On average, sell-side analysts anticipate that Honest will post -0.07 earnings per share for the current year.

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

Hedge Funds Weigh In On Honest

Institutional investors and hedge funds have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Honest by 6.9% during 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 during the last quarter. Wealth Enhancement Advisory Services LLC grew its position in shares of Honest by 18.7% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 21,366 shares of the company’s stock valued at $81,000 after acquiring an additional 3,365 shares during the period. Osaic Holdings Inc. grew its position in shares of Honest by 33.9% during 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 during the period. CWM LLC increased its stake in shares of Honest by 17.1% in the 3rd quarter. CWM LLC now owns 27,342 shares of the company’s stock worth $101,000 after purchasing an additional 3,985 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in Honest by 14.9% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 33,734 shares of the company’s stock worth $172,000 after purchasing an additional 4,378 shares during the period. Hedge funds and other institutional investors own 45.54% of the company’s stock.

About Honest

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.