Honest (NASDAQ:HNST) Trading Down 6.3% – Time to Sell?

The Honest Company, Inc. (NASDAQ:HNST) shares were down 6.3% during trading on Friday . The company traded as low as $5.84 and last traded at $5.93. Approximately 646,996 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 1,773,994 shares. The stock had previously closed at $6.33.

Analyst Ratings Changes

HNST has been the topic of several recent research reports. Loop Capital cut Honest from a “buy” rating to a “hold” rating and set a $7.00 price target on the stock. in a research note on Tuesday, December 17th. B. Riley upped their target price on shares of Honest from $6.50 to $7.00 and gave the stock a “buy” rating in a research report on Wednesday, November 13th. Telsey Advisory Group boosted their price objective on shares of Honest from $6.00 to $7.00 and gave the stock a “market perform” rating in a research note on Friday. Alliance Global Partners upped their price objective on shares of Honest from $5.75 to $8.00 and gave the stock a “buy” rating in a report on Wednesday, November 13th. Finally, Northland Securities boosted their price target on Honest from $7.50 to $9.50 and gave the stock an “outperform” rating in a research report on Wednesday, December 4th. Three investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, Honest currently has an average rating of “Moderate Buy” and an average price target of $6.93.

Honest Price Performance

The company has a market cap of $595.67 million, a P/E ratio of -147.50 and a beta of 2.45. The company’s 50-day moving average is $6.83 and its two-hundred day moving average is $4.79.

Insiders Place Their Bets

In other news, General Counsel Brendan Sheehey sold 92,138 shares of Honest stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $8.13, for a total value of $749,081.94. Following the completion of the sale, the general counsel now directly owns 516,816 shares in the company, valued at $4,201,714.08. The trade was a 15.13 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Jessica Warren sold 465,000 shares of the stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $7.55, for a total transaction of $3,510,750.00. Following the transaction, the director now owns 1,170,058 shares in the company, valued at approximately $8,833,937.90. This trade represents a 28.44 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 799,818 shares of company stock valued at $5,975,421. Corporate insiders own 8.60% 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 stock. Bank of New York Mellon Corp bought a new stake in shares of Honest in the second quarter worth $695,000. Rhumbline Advisers grew its stake in shares of Honest by 2,486.2% during the 2nd quarter. Rhumbline Advisers now owns 104,481 shares of the company’s stock valued at $305,000 after purchasing an additional 100,441 shares during the period. Acadian Asset Management LLC increased its position in shares of Honest by 706.1% during the 2nd quarter. Acadian Asset Management LLC now owns 716,332 shares of the company’s stock valued at $2,088,000 after purchasing an additional 627,464 shares during the last quarter. American Century Companies Inc. lifted its stake in shares of Honest by 41.5% in the 2nd quarter. American Century Companies Inc. now owns 111,141 shares of the company’s stock worth $325,000 after purchasing an additional 32,586 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Honest by 68.1% in the second quarter. Dimensional Fund Advisors LP now owns 943,618 shares of the company’s stock worth $2,755,000 after buying an additional 382,418 shares during the last quarter. 45.54% of the stock is currently owned by hedge funds and other institutional investors.

About Honest

The Honest Company, Inc manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. The company also offers baby clothing and nursery bedding products. It sells its products through digital and retail sales channels, such as its website and third-party ecommerce sites, as well as brick and mortar retailers.