Honest (NASDAQ:HNST) Releases Earnings Results, Beats Expectations By $0.02 EPS

Honest (NASDAQ:HNST) announced its earnings results on Wednesday. The company reported $0.01 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.01) by $0.02, FiscalAI reports. Honest had a net margin of 1.66% and a return on equity of 3.84%. The business had revenue of $92.57 million during the quarter, compared to analyst estimates of $99.43 million. Honest updated its FY 2025 guidance to EPS.

Honest Trading Down 24.7%

HNST traded down $0.82 during trading hours on Thursday, hitting $2.49. The company’s stock had a trading volume of 14,963,676 shares, compared to its average volume of 3,122,280. The business’s 50-day moving average price is $3.76 and its 200-day moving average price is $4.36. Honest has a 12 month low of $2.31 and a 12 month high of $8.97. The stock has a market cap of $276.51 million, a price-to-earnings ratio of 49.71 and a beta of 2.28.

Wall Street Analyst Weigh In

Several research analysts have commented on HNST shares. Weiss Ratings downgraded shares of Honest from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Saturday, October 25th. B. Riley restated a “buy” rating on shares of Honest in a report on Thursday. Lake Street Capital cut shares of Honest from a “buy” rating to a “hold” rating and set a $3.00 price target on the stock. in a research note on Thursday. Morgan Stanley dropped their price target on shares of Honest from $5.50 to $4.25 and set an “equal weight” rating on the stock in a research note on Friday, August 15th. Finally, Telsey Advisory Group decreased their target price on Honest from $6.00 to $3.00 and set a “market perform” rating for the company in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $5.96.

Insider Buying and Selling

In other news, insider Stephen Winchell sold 10,841 shares of Honest stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $3.65, for a total transaction of $39,569.65. Following the completion of the sale, the insider directly owned 410,257 shares in the company, valued at approximately $1,497,438.05. This trade represents a 2.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Carla Vernon sold 99,328 shares of Honest stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $3.65, for a total value of $362,547.20. Following the sale, the chief executive officer owned 2,998,993 shares of the company’s stock, valued at approximately $10,946,324.45. This trade represents a 3.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 131,890 shares of company stock worth $481,399 over the last three months. 8.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Honest

Several institutional investors and hedge funds have recently added to or reduced their stakes in HNST. Osaic Holdings Inc. grew its stake in shares of Honest by 33.9% during the second quarter. Osaic Holdings Inc. now owns 14,577 shares of the company’s stock worth $74,000 after acquiring an additional 3,693 shares during the last quarter. Orion Porfolio Solutions LLC purchased a new stake in shares of Honest during the second quarter worth about $106,000. State of Wyoming purchased a new stake in shares of Honest during the second quarter worth about $61,000. BNP Paribas Financial Markets grew its stake in shares of Honest by 152.2% during the second quarter. BNP Paribas Financial Markets now owns 82,217 shares of the company’s stock worth $418,000 after acquiring an additional 49,614 shares during the last quarter. Finally, Brevan Howard Capital Management LP grew its stake in shares of Honest by 20.3% during the second quarter. Brevan Howard Capital Management LP now owns 175,429 shares of the company’s stock worth $893,000 after acquiring an additional 29,657 shares during the last quarter. Hedge funds and other institutional investors own 45.54% of the company’s stock.

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.