The Honest Company, Inc. (NASDAQ:HNST) Sees Significant Decline in Short Interest

The Honest Company, Inc. (NASDAQ:HNST) was the recipient of a significant decrease in short interest in August. As of August 31st, there was short interest totalling 2,430,000 shares, a decrease of 5.1% from the August 15th total of 2,560,000 shares. Based on an average trading volume of 1,440,000 shares, the days-to-cover ratio is presently 1.7 days. Approximately 3.9% of the shares of the stock are short sold.

Honest Trading Down 2.1 %

Honest stock opened at $3.73 on Friday. The firm has a market capitalization of $367.92 million, a P/E ratio of -16.17 and a beta of 1.90. The business has a 50-day moving average of $3.90 and a 200-day moving average of $3.44. Honest has a 1 year low of $1.06 and a 1 year high of $4.89.

Honest (NASDAQ:HNST) last issued its quarterly earnings data on Thursday, August 8th. The company reported ($0.04) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.04). The firm had revenue of $93.05 million during the quarter, compared to analysts’ expectations of $87.63 million. Honest had a negative net margin of 3.50% and a negative return on equity of 10.00%. During the same quarter in the previous year, the company earned ($0.14) earnings per share. Research analysts anticipate that Honest will post -0.1 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Northland Securities assumed coverage on Honest in a research report on Tuesday, August 6th. They set an “outperform” rating and a $6.00 target price for the company. Loop Capital upgraded shares of Honest from a “hold” rating to a “buy” rating and set a $3.00 target price on the stock in a research report on Tuesday, June 25th. B. Riley initiated coverage on shares of Honest in a research note on Tuesday, September 10th. They issued a “buy” rating and a $6.50 target price on the stock. Finally, Northland Capmk raised shares of Honest to a “strong-buy” rating in a research note on Tuesday, August 6th. Two investment analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Honest has a consensus rating of “Moderate Buy” and an average target price of $5.04.

Insiders Place Their Bets

In other news, insider Katherine Barton sold 16,185 shares of the business’s stock in a transaction on Wednesday, August 21st. The shares were sold at an average price of $4.28, for a total value of $69,271.80. Following the sale, the insider now owns 916,820 shares in the company, valued at approximately $3,923,989.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, Director James D. White sold 70,000 shares of the stock in a transaction that occurred on Tuesday, August 13th. The stock was sold at an average price of $3.98, for a total transaction of $278,600.00. Following the sale, the director now directly owns 309,244 shares in the company, valued at approximately $1,230,791.12. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Katherine Barton sold 16,185 shares of Honest stock in a transaction on Wednesday, August 21st. The shares were sold at an average price of $4.28, for a total value of $69,271.80. Following the completion of the transaction, the insider now owns 916,820 shares of the company’s stock, valued at approximately $3,923,989.60. The disclosure for this sale can be found here. Insiders sold 231,187 shares of company stock worth $968,480 over the last three months. 8.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Honest

Large investors have recently made changes to their positions in the company. EntryPoint Capital LLC acquired a new position in Honest in the first quarter valued at about $27,000. Lazard Asset Management LLC acquired a new position in shares of Honest in the 1st quarter valued at approximately $52,000. Panagora Asset Management Inc. bought a new stake in Honest during the 2nd quarter worth approximately $43,000. SG Americas Securities LLC bought a new stake in Honest during the 1st quarter worth approximately $93,000. Finally, Cannon Global Investment Management LLC acquired a new stake in Honest during the 1st quarter worth approximately $122,000. Institutional investors 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.