Honest (NASDAQ:HNST) Shares Gap Down – What’s Next?

The Honest Company, Inc. (NASDAQ:HNST)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $5.68, but opened at $5.05. Honest shares last traded at $5.00, with a volume of 5,999,045 shares.

Analysts Set New Price Targets

Several research analysts have weighed in on HNST shares. 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. Northland Securities raised 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. Alliance Global Partners boosted their price objective on shares of Honest from $5.75 to $8.00 and gave the company a “buy” rating in a research report on Wednesday, November 13th. Loop Capital downgraded Honest from a “buy” rating to a “hold” rating and set a $7.00 target price on the stock. in a research report on Tuesday, December 17th. Finally, Telsey Advisory Group reiterated a “market perform” rating and issued a $7.00 target price on shares of Honest in a report on Thursday. Three research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $6.93.

Honest Stock Down 11.8 %

The business has a 50-day moving average price of $6.33 and a 200-day moving average price of $5.44. The company has a market capitalization of $505.81 million, a price-to-earnings ratio of -125.25 and a beta of 2.43.

Honest (NASDAQ:HNST) last announced its earnings results on Wednesday, February 26th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.01. Honest had a negative net margin of 1.13% and a negative return on equity of 3.26%. The business had revenue of $99.84 million for the quarter, compared to analyst estimates of $96.46 million. As a group, sell-side analysts predict that The Honest Company, Inc. will post -0.07 EPS for the current year.

Insider Buying and Selling

In other Honest news, Director Jessica Warren sold 465,000 shares of the firm’s stock in a transaction dated Tuesday, December 10th. The stock was 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 8.60% of the stock is owned by corporate insiders.

Institutional Trading of Honest

Hedge funds and other institutional investors have recently modified their holdings of the company. SBI Securities Co. Ltd. acquired a new position in shares of Honest during the 4th quarter worth about $26,000. New York State Teachers Retirement System bought a new stake in Honest in the 4th quarter valued at $52,000. Zacks Investment Management acquired a new position in shares of Honest in the third quarter valued at about $37,000. Creative Planning acquired a new position in shares of Honest during the 3rd quarter worth approximately $39,000. Finally, Wealth Enhancement Advisory Services LLC acquired a new stake in shares of Honest during the 3rd quarter worth $40,000. Institutional investors and hedge funds own 45.54% of the company’s stock.

Honest Company Profile

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.