The Honest Company, Inc. (NASDAQ:HNST) Given Average Rating of “Reduce” by Analysts

The Honest Company, Inc. (NASDAQ:HNST) has earned an average rating of “Reduce” from the seven analysts that are presently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $3.00.

Several research analysts recently issued reports on the stock. Telsey Advisory Group reissued a “market perform” rating and set a $3.00 target price on shares of Honest in a report on Thursday, February 26th. Zacks Research raised Honest from a “strong sell” rating to a “hold” rating in a research report on Thursday. Morgan Stanley set a $3.00 price objective on Honest in a research note on Wednesday, March 4th. Wall Street Zen raised Honest from a “sell” rating to a “hold” rating in a report on Sunday, March 15th. Finally, JPMorgan Chase & Co. restated an “underweight” rating on shares of Honest in a research note on Friday, January 16th.

Honest Stock Down 1.0%

Honest stock opened at $2.88 on Friday. The stock has a 50-day moving average price of $2.54 and a 200 day moving average price of $2.92. The company has a market capitalization of $323.91 million, a price-to-earnings ratio of -20.57 and a beta of 2.27. Honest has a 52 week low of $2.07 and a 52 week high of $5.55.

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

Honest announced that its Board of Directors has approved a share repurchase program on Friday, February 20th that permits the company to buyback $25.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 9.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Honest

In related news, SVP Jonathan Mayle sold 12,725 shares of the stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $2.85, for a total transaction of $36,266.25. Following the sale, the senior vice president directly owned 455,391 shares of the company’s stock, valued at approximately $1,297,864.35. This represents a 2.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, General Counsel Brendan Sheehey sold 22,556 shares of the firm’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $2.85, for a total transaction of $64,284.60. Following the sale, the general counsel owned 725,672 shares in the company, valued at approximately $2,068,165.20. This represents a 3.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 191,894 shares of company stock worth $546,898. Insiders own 8.90% of the company’s stock.

Institutional Investors Weigh In On Honest

A number of institutional investors have recently modified their holdings of HNST. Amicus Financial Advisors LLC purchased a new position in shares of Honest in the 4th quarter valued at about $29,000. Alpine Global Management LLC purchased a new position in Honest during the fourth quarter worth approximately $86,000. Virtu Financial LLC acquired a new stake in Honest in the fourth quarter valued at approximately $448,000. Invesco Ltd. grew its holdings in Honest by 45.9% in the fourth quarter. Invesco Ltd. now owns 186,991 shares of the company’s stock valued at $482,000 after purchasing an additional 58,784 shares during the period. Finally, Inspire Investing LLC increased its position in shares of Honest by 47.1% in the fourth quarter. Inspire Investing LLC now owns 181,076 shares of the company’s stock valued at $467,000 after buying an additional 57,956 shares in the last quarter. 45.54% of the stock is currently owned by institutional investors and hedge funds.

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.