Honest (NASDAQ:HNST) Stock Price Up 9% – Should You Buy?

Shares of The Honest Company, Inc. (NASDAQ:HNST) traded up 9% during trading on Monday. The stock traded as high as $4.50 and last traded at $4.5450. Approximately 472,632 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 1,876,541 shares. The stock had previously closed at $4.17.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Weiss Ratings raised shares of Honest from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, October 8th. Morgan Stanley increased their target price on Honest from $3.40 to $5.70 and gave the company an “equal weight” rating in a report on Wednesday, August 12th. Wall Street Zen raised shares of Honest from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Northland Securities set a $5.50 price target on Honest in a research note on Thursday, August 6th. Finally, Alliance Global Partners reissued a “buy” rating on shares of Honest in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $4.84.

Honest Stock Performance

The firm has a 50 day moving average price of $5.22 and a two-hundred day moving average price of $3.77. The firm has a market capitalization of $479.40 million, a P/E ratio of -39.59 and a beta of 2.48.

Honest (NASDAQ:HNST) last announced 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 business had revenue of $80.19 million during the quarter, compared to analyst estimates of $77.83 million. Honest had a positive return on equity of 4.31% and a negative net margin of 3.56%. Equities research analysts forecast that The Honest Company, Inc. will post 0.05 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Jonathan Mayle sold 79,000 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $5.22, for a total value of $412,380.00. Following the completion of the transaction, the senior vice president directly owned 370,155 shares of the company’s stock, valued at approximately $1,932,209.10. This trade represents a 17.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Carla Vernón sold 117,893 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $4.99, for a total value of $588,286.07. Following the completion of the transaction, the chief executive officer directly owned 3,828,558 shares in the company, valued at $19,104,504.42. The trade was a 2.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 294,149 shares of company stock worth $1,503,306 over the last three months. Insiders own 9.40% of the company’s stock.

Institutional Investors Weigh In On Honest

A number of hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP increased its position in shares of Honest by 45.8% during the 2nd quarter. Allworth Financial LP now owns 7,038 shares of the company’s stock valued at $26,000 after purchasing an additional 2,211 shares during the last quarter. Vise Technologies Inc. boosted its position in Honest by 10.0% during the 3rd quarter. Vise Technologies Inc. now owns 44,272 shares of the company’s stock valued at $227,000 after acquiring an additional 4,020 shares in the last quarter. Legal & General Group Plc purchased a new position in Honest during the second quarter valued at $36,000. Amundi bought a new stake in Honest in the 2nd quarter worth about $44,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in shares of Honest in the second quarter worth approximately $56,000. 45.54% of the stock is currently owned by institutional investors.

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.