Carla Vernon Sells 117,893 Shares of Honest (NASDAQ:HNST) Stock

The Honest Company, Inc. (NASDAQ:HNST) CEO Carla Vernon sold 117,893 shares of the business’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $4.99, for a total transaction of $588,286.07. Following the completion of the sale, the chief executive officer directly owned 3,828,558 shares in the company, valued at approximately $19,104,504.42. This represents a 2.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Honest Trading Up 6.0%

Shares of HNST opened at $5.51 on Wednesday. The Honest Company, Inc. has a 12 month low of $2.07 and a 12 month high of $5.84. The firm has a fifty day simple moving average of $4.16 and a 200 day simple moving average of $3.41. The stock has a market capitalization of $606.54 million, a price-to-earnings ratio of -50.09 and a beta of 2.12.

Honest (NASDAQ:HNST) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.03. The firm had revenue of $80.19 million for the quarter, compared to analyst estimates of $77.83 million. Honest had a negative net margin of 3.56% and a positive return on equity of 4.31%. As a group, research analysts predict that The Honest Company, Inc. will post 0.05 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Freedom Capital raised Honest from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 6th. Wall Street Zen raised Honest from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Northland Securities set a $5.50 target price on shares of Honest in a research note on Thursday, August 6th. Morgan Stanley boosted their target price on shares of Honest from $3.40 to $5.70 and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. Finally, Telsey Advisory Group boosted their target price on shares of Honest from $4.00 to $5.00 and gave the stock a “market perform” rating in a report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $4.84.

Key Honest News

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Honest’s latest quarterly results exceeded expectations, with earnings of $0.04 per share versus the $0.01 consensus estimate and revenue of $80.19 million versus $77.83 million expected. Analysts currently forecast approximately $0.05 in full-year EPS, supporting the company’s turnaround narrative.
• Positive Sentiment: Institutional interest has strengthened. BlackRock established an approximately $25.7 million position, while Balyasny Asset Management, Goldman Sachs and UBS increased their holdings. Institutional investors and hedge funds now own roughly 45.5% of the shares.
• Positive Sentiment: Analyst sentiment has improved, including Morgan Stanley’s price-target increase to $5.70, Northland Securities’ $5.50 target and rating upgrades from Freedom Capital and Wall Street Zen. These revisions reinforce the view that Honest’s recent momentum could continue, although the overall consensus remains “Hold.” Honest turnaround analysis
• Neutral Sentiment: Reported short interest was listed at zero shares, with a zero-day days-to-cover ratio. Because the data shows no measurable short position and includes an invalid percentage change, it provides little reliable information about current trading pressure.
• Negative Sentiment: Multiple executives sold shares acquired near $4.99–$5.01, including CEO Carla Vernon’s 117,893 shares and sales by several senior executives and the general counsel. The transactions totaled roughly 150,854 shares and $753,000. The sales were made under pre-arranged Rule 10b5-1 plans, and the insiders retained sizable stakes, reducing—but not eliminating—the negative signal for investors.

Institutional Trading of Honest

Several hedge funds and other institutional investors have recently modified their holdings of HNST. UBS Group AG lifted its position in shares of Honest by 77.3% during the 4th quarter. UBS Group AG now owns 1,014,939 shares of the company’s stock worth $2,619,000 after buying an additional 442,542 shares during the last quarter. Green Alpha Advisors LLC bought a new position in Honest in the second quarter valued at about $1,092,000. Quantbot Technologies LP bought a new position in Honest in the second quarter valued at about $279,000. Wealthfront Advisers LLC raised its stake in Honest by 24.0% during the fourth quarter. Wealthfront Advisers LLC now owns 25,177 shares of the company’s stock worth $65,000 after acquiring an additional 4,873 shares in the last quarter. Finally, Allworth Financial LP acquired a new position in Honest during the second quarter worth about $26,000. 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.