Honest’s (HNST) Market Perform Rating Reiterated at Telsey Advisory Group

Telsey Advisory Group reiterated their market perform rating on shares of Honest (NASDAQ:HNST) in a research report sent to investors on Thursday,Benzinga reports. They currently have a $3.00 price target on the stock.

A number of other equities research analysts have also recently commented on HNST. Morgan Stanley reduced their price objective on Honest from $4.25 to $3.00 and set an “equal weight” rating for the company in a research note on Wednesday, November 19th. Zacks Research cut Honest from a “strong-buy” rating to a “hold” rating in a report on Thursday, November 6th. B. Riley Financial reissued a “buy” rating on shares of Honest in a research report on Thursday, November 6th. Weiss Ratings restated a “sell (d+)” rating on shares of Honest in a research note on Thursday, January 22nd. Finally, JPMorgan Chase & Co. restated an “underweight” rating on shares of Honest in a report on Friday, January 16th. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $3.00.

Honest Trading Up 0.4%

HNST opened at $2.80 on Thursday. The company has a fifty day moving average price of $2.47 and a two-hundred day moving average price of $3.08. Honest has a 1-year low of $2.07 and a 1-year high of $5.62. The company has a market cap of $314.92 million, a P/E ratio of -20.00 and a beta of 2.30.

Honest (NASDAQ:HNST) last issued its earnings results on Wednesday, February 25th. The company reported ($0.21) EPS for the quarter, missing the consensus estimate of $0.02 by ($0.23). Honest had a negative net margin of 4.22% and a positive return on equity of 4.47%. The firm had revenue of $88.04 million during the quarter, compared to analyst estimates of $88.57 million. On average, research analysts forecast that Honest will post -0.07 EPS for the current fiscal year.

Honest declared that its Board of Directors has initiated a stock buyback plan on Friday, February 20th that authorizes the company to buyback $25.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 9.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Honest

Several large investors have recently bought and sold shares of HNST. Portolan Capital Management LLC raised its holdings in shares of Honest by 11.4% in the third quarter. Portolan Capital Management LLC now owns 6,928,004 shares of the company’s stock valued at $25,495,000 after purchasing an additional 710,651 shares during the last quarter. Mak Capital One LLC bought a new stake in Honest in the 4th quarter worth about $9,104,000. ArrowMark Colorado Holdings LLC grew its position in Honest by 5.3% in the 3rd quarter. ArrowMark Colorado Holdings LLC now owns 2,999,546 shares of the company’s stock worth $11,038,000 after purchasing an additional 151,000 shares in the last quarter. Geode Capital Management LLC grew its position in Honest by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 2,323,572 shares of the company’s stock worth $5,996,000 after purchasing an additional 28,579 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in Honest by 8.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,259,540 shares of the company’s stock valued at $8,315,000 after buying an additional 171,425 shares during the last quarter. 45.54% of the stock is currently owned by institutional investors.

Honest News Roundup

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Board-authorized $25 million share repurchase (up to ~9.9% of shares) — buybacks can support the stock by reducing float and signal management believes shares are undervalued. RTT News
• Positive Sentiment: Analysts and write-ups highlight a stronger cash position and a debt-free balance sheet after Q4, arguing valuation looks cheap (0.57x forward EV/Sales) and margin expansion could drive rerating. This framing supports a constructive outlook if execution continues. The Honest Company: Strong Cash Position As Transformation Gains Traction
• Neutral Sentiment: Q4 2025 results were described as broadly in-line on revenue but mixed on metrics — revenue roughly met expectations while margins and EPS showed pressure as the company navigates a transformation. Investors should watch execution and margin progress for signal of recovery. HNST Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Telsey Advisory Group reaffirmed a “market perform” rating with a $3.00 price target — a modest upside from current levels but not a bullish endorsement. Telsey Advisory Group Coverage (Benzinga)
• Negative Sentiment: FY2026 revenue guidance was lowered to $306.0–$312.0 million vs. consensus near $340 million — a sizable shortfall that explains weaker near-term growth expectations and pressure on the stock.
• Negative Sentiment: Zacks Research downgraded HNST from “hold” to “strong sell,” indicating heightened analyst concern about near-term fundamentals and contributing to negative sentiment. Zacks Research Downgrade TickerReport Coverage

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.