The Honest Company, Inc. (NASDAQ:HNST) Receives $3.00 Average PT from Brokerages

The Honest Company, Inc. (NASDAQ:HNST) has been given an average recommendation of “Reduce” by the seven ratings firms that are currently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has issued a buy recommendation on the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $3.00.

A number of research analysts have recently commented on the stock. JPMorgan Chase & Co. reaffirmed an “underweight” rating on shares of Honest in a research report on Friday, January 16th. Morgan Stanley set a $3.00 target price on Honest in a research report on Wednesday. Telsey Advisory Group restated a “market perform” rating and set a $3.00 price target on shares of Honest in a research note on Thursday, February 26th. Wall Street Zen cut Honest from a “hold” rating to a “sell” rating in a report on Saturday. Finally, Zacks Research downgraded Honest from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 25th.

Honest Trading Up 0.3%

Shares of HNST stock opened at $2.93 on Wednesday. The firm has a market capitalization of $329.55 million, a P/E ratio of -20.93 and a beta of 2.27. Honest has a 1 year low of $2.07 and a 1 year high of $5.55. The firm’s fifty day simple moving average is $2.48 and its 200 day simple moving average is $3.04.

Honest (NASDAQ:HNST) last issued its quarterly 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). The company had revenue of $88.04 million during the quarter, compared to the consensus estimate of $88.57 million. Honest had a negative net margin of 4.22% and a positive return on equity of 4.57%. Equities research analysts anticipate that Honest will post -0.07 EPS for the current fiscal year.

Honest announced that its board has initiated a share repurchase plan on Friday, February 20th that permits the company to buyback $25.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 9.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of HNST. Caitong International Asset Management Co. Ltd boosted its stake in Honest by 1,392.2% during the third quarter. Caitong International Asset Management Co. Ltd now owns 7,073 shares of the company’s stock worth $26,000 after buying an additional 6,599 shares in the last quarter. Amicus Financial Advisors LLC acquired a new position in shares of Honest in the 4th quarter valued at $29,000. Wealthcare Advisory Partners LLC bought a new position in shares of Honest during the 4th quarter worth about $32,000. Hibernia Wealth Partners LLC bought a new position in shares of Honest during the 4th quarter worth about $32,000. Finally, Equity Wealth Partners LLC acquired a new stake in shares of Honest during the 3rd quarter valued at about $37,000. 45.54% of the stock is owned by institutional investors.

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.