Honest (NASDAQ:HNST) Stock Keeps Buy Rating at B. Riley Financial

Honest (NASDAQ:HNST)‘s stock had its “buy” rating reiterated by research analysts at B. Riley Financial in a note issued to investors on Friday, Benzinga reports. They currently have a $5.50 target price on the stock, up from their previous target price of $5.00. B. Riley Financial‘s price target points to a potential upside of 15.86% from the stock’s current price.

A number of other brokerages have also recently commented on HNST. Morgan Stanley lifted their target price on Honest from $3.40 to $5.70 and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. Freedom Capital raised Honest from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 6th. Northland Securities set a $5.50 price target on Honest in a report on Thursday, August 6th. Telsey Advisory Group raised their price target on Honest from $4.00 to $5.00 and gave the stock a “market perform” rating in a research report on Thursday, August 6th. Finally, Wall Street Zen upgraded Honest from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $5.42.

Honest Stock Up 6.9%

HNST traded up $0.31 on Friday, hitting $4.75. The company had a trading volume of 1,646,796 shares, compared to its average volume of 1,910,465. The company has a market cap of $522.55 million, a PE ratio of -42.72 and a beta of 2.48. Honest has a 12-month low of $2.07 and a 12-month high of $6.01. The business’s fifty day simple moving average is $5.14 and its 200 day simple moving average is $3.81.

Honest (NASDAQ:HNST) last issued its quarterly earnings data on Thursday, November 5th. The company reported $0.03 earnings per share for the quarter. Honest had a positive return on equity of 4.31% and a negative net margin of 3.56%. The company had revenue of $84.61 million for the quarter, compared to analysts’ expectations of $80.79 million. On average, analysts anticipate that Honest will post 0.05 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Honest news, General Counsel Brendan Sheehey sold 9,664 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $4.99, for a total value of $48,223.36. Following the sale, the general counsel owned 706,224 shares in the company, valued at $3,524,057.76. This trade represents a 1.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andrea Turner sold 34,396 shares of Honest stock in a transaction on Monday, August 10th. The stock was sold at an average price of $5.30, for a total value of $182,298.80. Following the sale, the director owned 282,304 shares of the company’s stock, valued at approximately $1,496,211.20. This trade represents a 10.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 294,149 shares of company stock worth $1,503,306 over the last ninety days. Corporate insiders own 9.40% of the company’s stock.

Institutional Investors Weigh In On Honest

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HNST. Knights of Columbus Asset Advisors LLC increased its position in shares of Honest by 0.5% during the third quarter. Knights of Columbus Asset Advisors LLC now owns 520,924 shares of the company’s stock worth $2,672,000 after acquiring an additional 2,439 shares during the period. Vise Technologies Inc. boosted its holdings in shares of Honest by 10.0% in the third quarter. Vise Technologies Inc. now owns 44,272 shares of the company’s stock valued at $227,000 after purchasing an additional 4,020 shares during the period. State of Wyoming boosted its holdings in shares of Honest by 488.4% in the third quarter. State of Wyoming now owns 120,765 shares of the company’s stock valued at $620,000 after purchasing an additional 100,241 shares during the period. Prime Capital Investment Advisors LLC bought a new position in Honest in the third quarter worth approximately $196,000. Finally, Green Alpha Advisors LLC grew its stake in Honest by 30.1% in the third quarter. Green Alpha Advisors LLC now owns 387,992 shares of the company’s stock worth $1,990,000 after purchasing an additional 89,720 shares in the last quarter. Institutional investors own 45.54% of the company’s stock.

Key Stories Impacting Honest

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Q3 revenue of $84.6 million and earnings per share of $0.03 exceeded analyst expectations of $80.8 million and $0.02, respectively. Organic revenue grew 9.2%, while gross margin rose 770 basis points to 45.0%. The Honest Company Reports Third Quarter 2026 Results
• Positive Sentiment: Honest raised its 2026 adjusted EBITDA outlook to $25 million–$26 million, reflecting confidence in continued profitability and operating progress. Honest raises FY 2026 outlook
• Positive Sentiment: The company authorized a new $30 million share repurchase program, which may signal management confidence and provide support for the shares. Honest announces an equity buyback
• Neutral Sentiment: Full-year 2026 revenue guidance of $322 million–$325 million is broadly in line with the $322.5 million consensus estimate. Q3 earnings call highlights
• Negative Sentiment: Despite organic growth, reported Q3 revenue declined 8.6% year over year, a reminder that the company’s overall sales performance remains uneven. The Honest Company Reports Third Quarter 2026 Results

About Honest

The Honest Company, Inc is a consumer products company that develops and sells personal care, beauty, baby, and household products. Its offerings include diapers, wipes, baby care items, skin care, hair care, personal care products, and household cleaning solutions, with an emphasis on ingredient transparency and products positioned as safer and more sustainable alternatives.

Founded in 2011 by actress and entrepreneur Jessica Alba, Honest sells its products through its website and retail partners.