Honest (NASDAQ:HNST) Sees Strong Trading Volume After Analyst Upgrade

Shares of The Honest Company, Inc. (NASDAQ:HNST) saw an uptick in trading volume on Friday after Telsey Advisory Group raised their price target on the stock from $4.00 to $5.00. Telsey Advisory Group currently has a market perform rating on the stock. 1,262,647 shares traded hands during trading, a decline of 30% from the previous session’s volume of 1,791,602 shares.The stock last traded at $5.63 and had previously closed at $5.42.

Other equities research analysts also recently issued research reports about the stock. B. Riley Financial lifted their price target on shares of Honest from $4.00 to $5.00 and gave the stock a “buy” rating in a research note on Thursday. Northland Securities set a $5.50 price objective on shares of Honest in a report on Thursday. Morgan Stanley set a $3.40 target price on shares of Honest in a research report on Thursday, May 7th. Weiss Ratings reissued a “sell (d-)” rating on shares of Honest in a research note on Tuesday, May 26th. Finally, Wall Street Zen raised shares of Honest from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Two analysts have rated the stock with 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 company presently has an average rating of “Hold” and an average price target of $4.38.

Insider Buying and Selling

In other Honest news, insider Stephen Winchell sold 12,886 shares of Honest stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $3.14, for a total transaction of $40,462.04. Following the completion of the transaction, the insider directly owned 483,293 shares of the company’s stock, valued at approximately $1,517,540.02. This trade represents a 2.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Brendan Sheehey sold 9,784 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 $30,721.76. Following the completion of the sale, the general counsel owned 715,888 shares in the company, valued at $2,247,888.32. This represents a 1.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 175,058 shares of company stock valued at $550,591. 9.40% of the stock is owned by insiders.

Key Headlines Impacting Honest

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Q2 results beat expectations: Honest reported adjusted earnings of $0.04 per share, above the roughly $0.01–$0.02 analyst consensus. Revenue was $83.3 million, while organic revenue increased 6.7%. The Honest Company Reports Second Quarter 2026 Results
• Positive Sentiment: Profitability and cash flow indicators improved: Gross margin rose 800 basis points to 48.4%, adjusted EBITDA reached $7.8 million, and net income increased to $10.7 million. Cash and equivalents climbed to $105.9 million, strengthening the balance sheet for reinvestment. Honest Outlines Raised FY2026 Outlook
• Positive Sentiment: Full-year guidance was raised: Management now expects fiscal 2026 revenue of $319 million to $325 million, above the approximately $310.1 million consensus, and adjusted EBITDA of $23 million to $25 million. The stronger outlook suggests that higher-margin products and strategic exits are beginning to improve the business mix. The Honest Company: Strategic Exits Are Starting To Work
• Positive Sentiment: Analyst earnings estimates moved higher: Northland Securities raised its Q3 and Q4 2026 EPS forecasts to $0.03 per share from $0.02, while B. Riley raised its price target to $5 from $4 and maintained a Buy rating. B. Riley Price Target Report
• Neutral Sentiment: Investors are weighing growth quality: Management emphasized organic growth and margin expansion, but analysts continue to seek evidence that these gains can be sustained. The Honest Company: Awaiting More Consistent Improvements
• Negative Sentiment: Headline revenue declined: Total Q2 revenue fell 10.9% from the prior year, despite organic growth, reflecting the impact of product and business exits. Continued execution will be important because B. Riley’s $5 target remains below the recent trading level.

Institutional Trading of Honest

Several hedge funds have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Honest by 6.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,916 shares of the company’s stock valued at $235,000 after purchasing an additional 3,210 shares during the last quarter. Osaic Holdings Inc. raised its stake in shares of Honest by 33.9% during the second quarter. Osaic Holdings Inc. now owns 14,577 shares of the company’s stock worth $74,000 after buying an additional 3,693 shares during the last quarter. The Manufacturers Life Insurance Company raised its stake in shares of Honest by 14.9% during the second quarter. The Manufacturers Life Insurance Company now owns 33,734 shares of the company’s stock worth $172,000 after buying an additional 4,378 shares during the last quarter. Wealthfront Advisers LLC lifted its holdings in Honest by 24.0% in the fourth quarter. Wealthfront Advisers LLC now owns 25,177 shares of the company’s stock valued at $65,000 after buying an additional 4,873 shares during the period. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in Honest by 1,392.2% in the third quarter. Caitong International Asset Management Co. Ltd now owns 7,073 shares of the company’s stock valued at $26,000 after buying an additional 6,599 shares during the period. Institutional investors and hedge funds own 45.54% of the company’s stock.

Honest Price Performance

The stock has a market capitalization of $629.77 million, a P/E ratio of -51.95 and a beta of 2.12. The business’s 50 day simple moving average is $3.74 and its 200-day simple moving average is $3.17.

Honest (NASDAQ:HNST) last issued its earnings results on Wednesday, August 5th. The company reported $0.04 EPS for the quarter, beating the consensus estimate of $0.01 by $0.03. The company had revenue of $80.19 million during the quarter, compared to analysts’ expectations of $77.83 million. Honest had a negative net margin of 3.56% and a positive return on equity of 4.26%. Research analysts anticipate that The Honest Company, Inc. will post 0.1 earnings per share for the current fiscal year.

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.