Honest (NASDAQ:HNST) Shares Gap Down – Here’s Why

The Honest Company, Inc. (NASDAQ:HNST)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $7.43, but opened at $7.16. Honest shares last traded at $7.12, with a volume of 307,646 shares.

Wall Street Analyst Weigh In

HNST has been the topic of a number of recent analyst reports. Alliance Global Partners raised their price target on shares of Honest from $5.75 to $8.00 and gave the company a “buy” rating in a report on Wednesday, November 13th. Northland Securities raised their target price 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. B. Riley upped their price target on Honest from $6.50 to $7.00 and gave the stock a “buy” rating in a research report on Wednesday, November 13th. Loop Capital lowered Honest from a “buy” rating to a “hold” rating and set a $7.00 price objective for the company. in a report on Tuesday. Finally, Telsey Advisory Group boosted their target price on Honest from $4.00 to $6.00 and gave the stock a “market perform” rating in a research note on Wednesday, November 13th. Three equities research analysts have rated the stock with a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Honest currently has a consensus rating of “Moderate Buy” and a consensus target price of $6.79.

Honest Trading Down 4.7 %

The firm has a 50-day moving average of $5.69 and a 200-day moving average of $4.26. The stock has a market capitalization of $714.80 million, a price-to-earnings ratio of -185.75 and a beta of 2.42.

Insider Buying and Selling at Honest

In other news, EVP Stephen Winchell sold 7,123 shares of the firm’s stock in a transaction dated Wednesday, November 20th. The stock was sold at an average price of $7.10, for a total transaction of $50,573.30. Following the sale, the executive vice president now directly owns 382,613 shares in the company, valued at $2,716,552.30. This trade represents a 1.83 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Shared Abacus Lp Thc sold 2,300,000 shares of the company’s stock in a transaction dated Wednesday, September 18th. The stock was sold at an average price of $3.50, for a total value of $8,050,000.00. Following the completion of the transaction, the insider now directly owns 9,869,803 shares of the company’s stock, valued at $34,544,310.50. The trade was a 18.90 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 3,099,818 shares of company stock valued at $14,025,421. 8.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Honest

Several institutional investors and hedge funds have recently added to or reduced their stakes in HNST. Zacks Investment Management acquired a new stake in shares of Honest in the third quarter valued at about $37,000. Creative Planning purchased a new position in Honest in the 3rd quarter valued at about $39,000. Wealth Enhancement Advisory Services LLC acquired a new stake in Honest in the 3rd quarter worth about $40,000. Panagora Asset Management Inc. purchased a new stake in Honest during the 2nd quarter worth approximately $43,000. Finally, Castleview Partners LLC acquired a new position in shares of Honest during the third quarter valued at approximately $71,000. 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.