Key Points
- CEO Carla Vernon sold 129,335 shares at $2.85 for about $368,604.75, trimming her stake by 3.08% while still holding 4,065,546 shares (~$11.6M); several other insiders also sold small positions the same week.
- Honest missed earnings (Q: EPS -$0.21 vs. $0.02 expected) with revenue slightly below estimates, the stock is down recently and the board authorized a $25.0 million share buyback (up to ~9.9% of shares).
- Analysts are cautious—consensus rating is "Reduce" with an average price target of $3.00 and multiple downgrades from firms including Zacks, Weiss and JPMorgan.
The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) SVP Kunssberg Etienne Von sold 12,179 shares of Honest stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $2.85, for a total value of $34,710.15. Following the completion of the sale, the senior vice president owned 308,710 shares of the company's stock, valued at $879,823.50. The trade was a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website.
Honest Stock Performance
Shares of NASDAQ:HNST opened at $2.81 on Tuesday. The firm has a market cap of $316.04 million, a price-to-earnings ratio of -20.07 and a beta of 2.26. The business has a 50-day simple moving average of $2.48 and a two-hundred day simple moving average of $3.03. The Honest Company, Inc. has a fifty-two week low of $2.07 and a fifty-two week high of $5.55.
Honest (NASDAQ:HNST - Get Free Report) last announced its quarterly earnings results on Wednesday, February 25th. The company reported ($0.21) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.02 by ($0.23). Honest had a negative net margin of 4.22% and a positive return on equity of 4.57%. The company had revenue of $88.04 million for the quarter, compared to analysts' expectations of $88.57 million. As a group, research analysts predict that The Honest Company, Inc. will post -0.07 earnings per share for the current year.
Honest declared that its Board of Directors has authorized a share 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 buy up to 9.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its shares are undervalued.
Key Headlines Impacting Honest
Here are the key news stories impacting Honest this week:
- Negative Sentiment: CEO Carla Vernon sold 129,335 shares at an average price of $2.85 (≈ $368,605); she still holds 4,065,546 shares valued at ≈ $11.59M after the sale. SEC filing — Carla Vernon
- Negative Sentiment: SVP Kunssberg Etienne Von sold 12,179 shares at $2.85 (≈ $34,710), trimming his position by ~3.80%. SEC filing — Kunssberg Etienne Von
- Negative Sentiment: General Counsel Brendan Sheehey sold 22,556 shares at $2.85 (≈ $64,285), reducing his holdings by ~3.01%. SEC filing — Brendan Sheehey
- Negative Sentiment: SVP Jonathan Mayle sold 12,725 shares at $2.85 (≈ $36,266), a ~2.72% reduction in his stake. SEC filing — Jonathan Mayle
- Negative Sentiment: Insider Dorria L. Ball sold 15,099 shares at $2.85 (≈ $43,032), trimming her holding by ~3.37%. SEC filing — Dorria L. Ball
Analyst Ratings Changes
HNST has been the subject of a number of research analyst reports. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $3.00 target price on shares of Honest in a research report on Thursday, February 26th. Weiss Ratings restated a "sell (d+)" rating on shares of Honest in a research note on Thursday, January 22nd. Wall Street Zen lowered Honest from a "hold" rating to a "sell" rating in a report on Saturday. Morgan Stanley set a $3.00 price objective on Honest in a research report on Wednesday, March 4th. Finally, JPMorgan Chase & Co. reissued an "underweight" rating on shares of Honest in a report on Friday, January 16th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Honest currently has an average rating of "Reduce" and an average target price of $3.00.
Read Our Latest Analysis on Honest
Institutional Trading of Honest
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Geode Capital Management LLC raised its position in Honest by 10.5% in the second quarter. Geode Capital Management LLC now owns 2,068,945 shares of the company's stock worth $10,532,000 after acquiring an additional 196,218 shares during the period. Olympiad Research LP purchased a new position in shares of Honest during the 2nd quarter worth $78,000. Ethos Financial Group LLC bought a new stake in shares of Honest during the 2nd quarter valued at $62,000. Portolan Capital Management LLC grew its position in shares of Honest by 11.4% during the 3rd quarter. Portolan Capital Management LLC now owns 6,928,004 shares of the company's stock valued at $25,495,000 after acquiring an additional 710,651 shares during the period. Finally, AXQ Capital LP purchased a new stake in shares of Honest in the 3rd quarter worth $286,000. 45.54% of the stock is owned by hedge funds and other institutional investors.
About Honest
(
Get Free Report)
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.
Recommended Stories
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
