Honest (NASDAQ:HNST) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Honest (NASDAQ:HNST) from a hold rating to a buy rating in a report released on Saturday.

Other research analysts also recently issued reports about the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Honest in a report on Tuesday, May 26th. Alliance Global Partners restated a “buy” rating on shares of Honest in a research note on Thursday. Telsey Advisory Group upped their price target on Honest from $4.00 to $5.00 and gave the stock a “market perform” rating in a research report on Thursday. Northland Securities set a $5.50 price target on shares of Honest in a research note on Thursday. Finally, Morgan Stanley set a $3.40 price objective on shares of Honest in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $4.38.

Honest Trading Up 0.7%

HNST opened at $5.46 on Friday. The stock has a market capitalization of $601.04 million, a P/E ratio of -49.64 and a beta of 2.12. Honest has a 12 month low of $2.07 and a 12 month high of $5.84. The firm’s fifty day simple moving average is $3.78 and its 200 day simple moving average is $3.19.

Honest (NASDAQ:HNST) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.03. The firm had revenue of $80.19 million for the quarter, compared to the consensus estimate of $77.83 million. Honest had a positive return on equity of 4.26% and a negative net margin of 3.56%. On average, equities research analysts predict that Honest will post 0.09 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Curtiss James Bruce III sold 12,669 shares of the firm’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $3.14, for a total value of $39,780.66. Following the completion of the transaction, the chief financial officer directly owned 526,157 shares of the company’s stock, valued at approximately $1,652,132.98. This trade represents a 2.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Carla Vernon sold 119,389 shares of the business’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $3.14, for a total transaction of $374,881.46. Following the transaction, the chief executive officer owned 3,946,451 shares in the company, valued at approximately $12,391,856.14. The trade was a 2.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 175,058 shares of company stock worth $550,591 over the last 90 days. Company insiders own 9.40% of the company’s stock.

Institutional Trading of Honest

A number of large investors have recently added to or reduced their stakes in the company. UBS Group AG increased its stake in shares of Honest by 77.3% during the 4th quarter. UBS Group AG now owns 1,014,939 shares of the company’s stock worth $2,619,000 after purchasing an additional 442,542 shares during the last quarter. Wealthfront Advisers LLC lifted its stake in Honest by 24.0% in the 4th quarter. Wealthfront Advisers LLC now owns 25,177 shares of the company’s stock valued at $65,000 after purchasing an additional 4,873 shares during the last quarter. SG Americas Securities LLC lifted its stake in Honest by 122.3% in the 4th quarter. SG Americas Securities LLC now owns 36,461 shares of the company’s stock valued at $94,000 after purchasing an additional 20,059 shares during the last quarter. Bank of America Corp DE grew its holdings in Honest by 28.4% during the first quarter. Bank of America Corp DE now owns 223,099 shares of the company’s stock worth $656,000 after purchasing an additional 49,342 shares during the period. Finally, Deutsche Bank AG bought a new position in Honest during the second quarter worth about $328,000. Institutional investors and hedge funds own 45.54% of the company’s stock.

Honest News Summary

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Q2 results beat expectations: Honest reported adjusted earnings of $0.04 per share, ahead of estimates ranging from $0.01 to $0.02 and up from $0.03 a year earlier. Revenue reached $80.19 million versus the $77.83 million consensus estimate. Honest Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Raised 2026 outlook: Management increased its fiscal-year 2026 forecast to $319 million-$325 million in revenue and $23 million-$25 million in adjusted EBITDA, signaling confidence in profitability and operating execution. Honest Outlines Raised FY2026 Outlook
• Positive Sentiment: Analyst earnings estimates increased: Northland Securities raised its Q3 and Q4 2026 EPS forecasts to $0.03 from $0.02, while maintaining a $0.10 full-year consensus estimate. Honest analyst estimates
• Neutral Sentiment: Strategic changes are showing progress: An analysis argues that Honest’s strategic exits are beginning to improve the business, but investors may need further evidence that the gains can be sustained. The Honest Company: Strategic Exits Are Starting To Work
• Negative Sentiment: Execution concerns remain: Another assessment says Honest is still awaiting more consistent improvements, highlighting the risk that recent operating gains may not yet represent a durable turnaround. The Honest Company – Awaiting More Consistent Improvements
• Neutral Sentiment: B. Riley raised its price target to $5 from $4 and retained a “Buy” rating, although the new target is below the recent trading level, limiting its immediate upside implication.

Honest Company Profile

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.