Honest (NASDAQ:HNST) Shares Gap Down – Time to Sell?

The Honest Company, Inc. (NASDAQ:HNST) 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 trading hands.

Analysts Set New Price Targets

A number of research firms have recently issued reports on HNST. Telsey Advisory Group reiterated a “market perform” rating and set a $7.00 price objective on shares of Honest in a research note on Thursday. Alliance Global Partners increased their price objective on shares of Honest from $5.75 to $8.00 and gave the company 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 on the stock. in a research note on Tuesday, December 17th. B. Riley increased their price objective on shares of Honest from $6.50 to $7.00 and gave the company a “buy” rating in a research note on Wednesday, November 13th. Finally, Northland Securities lifted their price target on shares of Honest from $7.50 to $9.50 and gave the stock an “outperform” rating in a report on Wednesday, December 4th. Three investment 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 stock. According to MarketBeat, Honest has an average rating of “Moderate Buy” and a consensus price target of $6.93.

Honest Price Performance

The company’s fifty day simple moving average is $6.27 and its 200-day simple moving average is $5.45. The firm has a market capitalization of $545.19 million, a PE ratio of -135.00 and a beta of 2.43.

Honest (NASDAQ:HNST) last posted its quarterly earnings data on Wednesday, February 26th. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.02) by $0.01. Honest had a negative net margin of 1.13% and a negative return on equity of 3.26%. The business had revenue of $99.84 million during the quarter, compared to the consensus estimate of $96.46 million. As a group, equities research analysts anticipate that The Honest Company, Inc. will post -0.07 earnings per share for the current fiscal year.

Insider Transactions at Honest

In other news, Director Jessica Warren sold 465,000 shares of Honest stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $7.55, for a total transaction of $3,510,750.00. Following the completion of the sale, the director now directly owns 1,170,058 shares in the company, valued at approximately $8,833,937.90. The trade was a 28.44 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 8.60% of the company’s stock.

Institutional Investors Weigh In On Honest

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Jefferies Financial Group Inc. acquired a new position in Honest during the fourth quarter valued at $932,000. Public Employees Retirement System of Ohio acquired a new position in Honest during the fourth quarter valued at $352,000. Voloridge Investment Management LLC acquired a new position in Honest during the fourth quarter valued at $159,000. Squarepoint Ops LLC lifted its position in Honest by 642.4% during the fourth quarter. Squarepoint Ops LLC now owns 326,011 shares of the company’s stock valued at $2,259,000 after purchasing an additional 282,098 shares during the period. Finally, Two Sigma Advisers LP lifted its position in Honest by 317.7% during the fourth quarter. Two Sigma Advisers LP now owns 200,100 shares of the company’s stock valued at $1,387,000 after purchasing an additional 152,200 shares during the period. 45.54% of the stock is currently owned by institutional investors and hedge funds.

Honest Company Profile

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.