The Honest Company, Inc. (NASDAQ:HNST) Receives $3.47 Consensus Target Price from Brokerages

The Honest Company, Inc. (NASDAQ:HNST) has received an average recommendation of “Hold” from the eight analysts that are presently covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, four have given a hold recommendation and two have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $3.4667.

Several analysts recently commented on HNST shares. Telsey Advisory Group reaffirmed 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 raised Honest from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Honest in a report on Tuesday, May 26th. Morgan Stanley set a $3.40 price objective on Honest in a report on Thursday, May 7th. Finally, Zacks Research raised Honest from a “strong sell” rating to a “hold” rating in a report on Thursday, March 26th.

Honest Stock Up 0.8%

Honest stock opened at $3.61 on Friday. The firm has a market cap of $397.39 million, a price-to-earnings ratio of -21.24 and a beta of 2.13. Honest has a 52 week low of $2.07 and a 52 week high of $5.28. The business’s 50-day moving average price is $3.35 and its 200 day moving average price is $2.88.

Honest (NASDAQ:HNST) last posted its earnings results on Wednesday, May 6th. The company reported $0.01 EPS for the quarter, hitting the consensus estimate of $0.01. The firm had revenue of $78.10 million for the quarter, compared to analyst estimates of $76.25 million. Honest had a positive return on equity of 3.52% and a negative net margin of 5.39%. Equities analysts expect that Honest will post 0.1 EPS for the current year.

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

Insiders Place Their Bets

In other Honest news, CFO Curtiss James Bruce III sold 12,669 shares of the firm’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 value of $39,780.66. Following the sale, the chief financial officer directly owned 526,157 shares of the company’s stock, valued at approximately $1,652,132.98. This trade represents a 2.35% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, General Counsel Brendan Sheehey sold 9,784 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $3.14, for a total value of $30,721.76. Following the completion of the sale, the general counsel directly owned 715,888 shares in the company, valued at approximately $2,247,888.32. The trade was a 1.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 in the last three months. 9.40% of the stock is currently owned by company insiders.

Institutional Trading of Honest

Several institutional investors have recently bought and sold shares of the business. Bank of America Corp DE grew its holdings in Honest by 28.4% in the first quarter. Bank of America Corp DE now owns 223,099 shares of the company’s stock valued at $656,000 after purchasing an additional 49,342 shares during the period. Amicus Financial Advisors LLC acquired a new stake in shares of Honest in the fourth quarter worth approximately $29,000. Alpine Global Management LLC acquired a new stake in shares of Honest in the fourth quarter worth approximately $86,000. Virtu Financial LLC acquired a new stake in shares of Honest in the fourth quarter worth approximately $448,000. Finally, Invesco Ltd. boosted its stake in shares of Honest by 45.9% in the fourth quarter. Invesco Ltd. now owns 186,991 shares of the company’s stock worth $482,000 after acquiring an additional 58,784 shares during the last quarter. 45.54% of the stock is owned by institutional investors and hedge funds.

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.