Honest (NASDAQ:HNST) Shares Gap Down - Here's Why

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) gapped down before the market opened 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.

Analyst Ratings Changes

Several brokerages have issued reports on HNST. Northland Securities boosted their price objective on shares of Honest from $7.50 to $9.50 and gave the company an "outperform" rating in a research note on Wednesday, December 4th. Alliance Global Partners boosted their price target on shares of Honest from $5.75 to $8.00 and gave the stock a "buy" rating in a research note on Wednesday, November 13th. Loop Capital downgraded shares of Honest from a "buy" rating to a "hold" rating and set a $7.00 price objective for the company. in a research report on Tuesday, December 17th. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $7.00 price objective on shares of Honest in a report on Thursday. Finally, B. Riley increased their target price on Honest from $6.50 to $7.00 and gave the stock a "buy" rating in a research note on Wednesday, November 13th. Three equities research analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $6.93.

Honest Stock Down 5.4 %

The stock's fifty day simple moving average is $6.24 and its 200-day simple moving average is $5.48. The company has a market capitalization of $556.53 million, a PE ratio of -127.75 and a beta of 2.43.

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Honest (NASDAQ:HNST - Get Free Report) last released its quarterly earnings data on Wednesday, February 26th. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.02) by $0.01. The firm had revenue of $99.84 million during the quarter, compared to the consensus estimate of $96.46 million. Honest had a negative return on equity of 3.26% and a negative net margin of 1.13%. Analysts expect that The Honest Company, Inc. will post -0.07 EPS for the current year.

Insider Activity

In related news, Director Jessica Warren sold 465,000 shares of the stock in a transaction dated Tuesday, December 10th. The shares were sold at an average price of $7.55, for a total value of $3,510,750.00. Following the sale, the director now directly owns 1,170,058 shares of the company's stock, valued at approximately $8,833,937.90. This represents a 28.44 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 8.60% of the company's stock.

Hedge Funds Weigh In On Honest

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. SBI Securities Co. Ltd. purchased a new position in shares of Honest during the 4th quarter worth approximately $26,000. New York State Teachers Retirement System acquired a new stake in Honest during the 4th quarter valued at $52,000. Zacks Investment Management purchased a new position in Honest during the third quarter worth $37,000. Creative Planning acquired a new position in shares of Honest in the third quarter worth $39,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Honest in the third quarter valued at $40,000. Institutional investors and hedge funds 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.