Honest (NASDAQ:HNST) Cut to Sell at Wall Street Zen

Wall Street Zen downgraded shares of Honest (NASDAQ:HNST) from a hold rating to a sell rating in a research note released on Saturday morning.

Other equities analysts have also recently issued reports about the stock. Zacks Research cut shares of Honest from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 25th. Morgan Stanley set a $3.00 target price on shares of Honest in a research note on Wednesday, March 4th. JPMorgan Chase & Co. reaffirmed an “underweight” rating on shares of Honest in a report on Friday, January 16th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Honest in a research note on Thursday, January 22nd. Finally, Telsey Advisory Group reissued a “market perform” rating and issued a $3.00 price target on shares of Honest in a report on Thursday, February 26th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $3.00.

Honest Stock Down 4.1%

HNST opened at $2.81 on Friday. Honest has a 12-month low of $2.07 and a 12-month high of $5.55. The business has a 50 day moving average of $2.48 and a 200-day moving average of $3.03. The stock has a market cap of $316.04 million, a price-to-earnings ratio of -20.07 and a beta of 2.26.

Honest (NASDAQ:HNST) last posted its earnings results on Wednesday, February 25th. The company reported ($0.21) earnings per share for the quarter, missing analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $88.57 million. As a group, analysts expect that Honest will post -0.07 earnings per share for the current year.

Honest announced that its Board of Directors has initiated a share buyback plan on Friday, February 20th that allows the company to repurchase $25.00 million in shares. This repurchase authorization allows the company to reacquire up to 9.9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Honest

In related news, CEO Carla Vernon sold 129,335 shares of the firm’s stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $2.85, for a total transaction of $368,604.75. Following the transaction, the chief executive officer directly owned 4,065,546 shares of the company’s stock, valued at approximately $11,586,806.10. This trade represents a 3.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Dorria L. Ball sold 15,099 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 transaction of $43,032.15. Following the completion of the sale, the insider owned 432,295 shares of the company’s stock, valued at $1,232,040.75. This trade represents a 3.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 191,894 shares of company stock valued at $546,898 in the last quarter. Company insiders own 8.90% of the company’s stock.

Institutional Investors Weigh In On Honest

Institutional investors have recently made changes to their positions in the stock. Geode Capital Management LLC raised its holdings in Honest by 10.5% in the 2nd quarter. Geode Capital Management LLC now owns 2,068,945 shares of the company’s stock valued at $10,532,000 after acquiring an additional 196,218 shares in the last quarter. Police & Firemen s Retirement System of New Jersey raised its holdings in Honest by 36.3% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 21,942 shares of the company’s stock valued at $112,000 after acquiring an additional 5,840 shares in the last quarter. Summit Global Investments lifted its position in shares of Honest by 8.6% during the 2nd quarter. Summit Global Investments now owns 68,162 shares of the company’s stock valued at $347,000 after acquiring an additional 5,417 shares during the period. Olympiad Research LP acquired a new stake in shares of Honest during the 2nd quarter worth $78,000. Finally, Ethos Financial Group LLC acquired a new stake in shares of Honest during the 2nd quarter worth $62,000. 45.54% of the stock is currently owned by institutional investors.

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

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.