The Honest Company, Inc. (NASDAQ:HNST) Receives Consensus Rating of “Hold” from Brokerages

Shares of The Honest Company, Inc. (NASDAQ:HNST) have been given an average rating of “Hold” by the eight brokerages that are presently covering the firm, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and two have given a buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $3.4667.

A number of equities analysts have commented on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Honest in a research note on Tuesday, May 26th. Alliance Global Partners reaffirmed a “buy” rating on shares of Honest in a research note on Thursday, May 7th. Telsey Advisory Group reiterated a “market perform” rating and set a $4.00 target price on shares of Honest in a report on Thursday, May 7th. Wall Street Zen upgraded shares of Honest from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Finally, Zacks Research upgraded shares of Honest from a “strong sell” rating to a “hold” rating in a report on Thursday, March 26th.

Honest Price Performance

Shares of Honest stock opened at $3.55 on Friday. The business’s 50 day simple moving average is $3.30 and its two-hundred day simple moving average is $2.86. The stock has a market capitalization of $390.78 million, a P/E ratio of -20.88 and a beta of 2.13. Honest has a one year low of $2.07 and a one year high of $5.28.

Honest (NASDAQ:HNST) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $0.01 EPS for the quarter, hitting analysts’ consensus estimates of $0.01. The business had revenue of $78.10 million for the quarter, compared to analysts’ expectations of $76.25 million. Honest had a positive return on equity of 3.52% and a negative net margin of 5.39%. Sell-side analysts expect that Honest will post 0.1 earnings per share for the current fiscal year.

Honest announced that its board has authorized a share buyback program on Friday, February 20th that permits the company to buyback $25.00 million in shares. This buyback authorization permits the company to purchase up to 9.9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, General Counsel Brendan Sheehey sold 9,784 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $3.14, for a total transaction of $30,721.76. Following the transaction, the general counsel directly owned 715,888 shares of the company’s stock, valued at approximately $2,247,888.32. The trade was a 1.35% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Stephen Winchell sold 12,886 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $3.14, for a total transaction of $40,462.04. Following the transaction, the insider directly owned 483,293 shares in the company, valued at approximately $1,517,540.02. The trade was a 2.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 175,058 shares of company stock valued at $550,591 over the last three months. 9.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Honest by 6.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,916 shares of the company’s stock worth $235,000 after purchasing an additional 3,210 shares during the period. Wealth Enhancement Advisory Services LLC grew its stake in Honest by 18.7% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 21,366 shares of the company’s stock worth $81,000 after purchasing an additional 3,365 shares during the period. Osaic Holdings Inc. grew its stake in Honest by 33.9% in the second quarter. Osaic Holdings Inc. now owns 14,577 shares of the company’s stock worth $74,000 after purchasing an additional 3,693 shares during the period. The Manufacturers Life Insurance Company grew its stake in 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 purchasing an additional 4,378 shares during the period. Finally, Wealthfront Advisers LLC grew its stake in Honest by 24.0% in the fourth quarter. Wealthfront Advisers LLC now owns 25,177 shares of the company’s stock worth $65,000 after purchasing an additional 4,873 shares during the period. 45.54% of the stock is owned by hedge funds and other institutional investors.

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.