The Honest Company, Inc. (NASDAQ:HNST) Sees Significant Decrease in Short Interest

The Honest Company, Inc. (NASDAQ:HNST) was the recipient of a large decline in short interest in August. As of August 31st, there was short interest totalling 2,430,000 shares, a decline of 5.1% from the August 15th total of 2,560,000 shares. Based on an average daily trading volume, of 1,440,000 shares, the days-to-cover ratio is currently 1.7 days. Approximately 3.9% of the company’s stock are short sold.

Honest Trading Down 0.8 %

Honest stock opened at $3.81 on Thursday. The company has a market capitalization of $375.81 million, a price-to-earnings ratio of -16.57 and a beta of 1.90. Honest has a 12 month low of $1.06 and a 12 month high of $4.89. The stock’s 50 day moving average is $3.90 and its 200-day moving average is $3.44.

Honest (NASDAQ:HNST) last posted its quarterly earnings data on Thursday, August 8th. The company reported ($0.04) earnings per share for the quarter, hitting the consensus estimate of ($0.04). Honest had a negative return on equity of 10.00% and a negative net margin of 3.50%. The firm had revenue of $93.05 million for the quarter, compared to analysts’ expectations of $87.63 million. During the same quarter last year, the business earned ($0.14) EPS. As a group, equities research analysts predict that Honest will post -0.1 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

HNST has been the topic of several recent analyst reports. Northland Securities initiated coverage on shares of Honest in a research note on Tuesday, August 6th. They set an “outperform” rating and a $6.00 price objective on the stock. B. Riley assumed coverage on Honest in a research report on Tuesday, September 10th. They set a “buy” rating and a $6.50 price target on the stock. Loop Capital raised Honest from a “hold” rating to a “buy” rating and set a $3.00 price objective for the company in a research report on Tuesday, June 25th. Finally, Northland Capmk raised Honest to a “strong-buy” rating in a report on Tuesday, August 6th. Two research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $5.04.

Insiders Place Their Bets

In other news, General Counsel Brendan Sheehey sold 8,176 shares of the firm’s stock in a transaction dated Wednesday, August 21st. The stock was sold at an average price of $4.28, for a total value of $34,993.28. Following the completion of the transaction, the general counsel now owns 517,861 shares in the company, valued at approximately $2,216,445.08. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In other news, Director James D. White sold 70,000 shares of the stock in a transaction that occurred on Tuesday, August 13th. The stock was sold at an average price of $3.98, for a total value of $278,600.00. Following the completion of the sale, the director now owns 309,244 shares of the company’s stock, valued at approximately $1,230,791.12. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Brendan Sheehey sold 8,176 shares of the firm’s stock in a transaction on Wednesday, August 21st. The shares were sold at an average price of $4.28, for a total transaction of $34,993.28. Following the completion of the transaction, the general counsel now directly owns 517,861 shares of the company’s stock, valued at $2,216,445.08. The disclosure for this sale can be found here. Insiders have sold 231,187 shares of company stock valued at $968,480 in the last three months. 8.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Honest

Hedge funds and other institutional investors have recently bought and sold shares of the business. Hillsdale Investment Management Inc. bought a new position in shares of Honest during the first quarter worth approximately $3,777,000. Renaissance Technologies LLC raised its holdings in Honest by 117.3% in the 2nd quarter. Renaissance Technologies LLC now owns 1,568,000 shares of the company’s stock valued at $4,579,000 after acquiring an additional 846,300 shares in the last quarter. Acadian Asset Management LLC lifted its position in shares of Honest by 706.1% during the 2nd quarter. Acadian Asset Management LLC now owns 716,332 shares of the company’s stock valued at $2,088,000 after acquiring an additional 627,464 shares during the period. Jacobs Levy Equity Management Inc. grew its holdings in shares of Honest by 973.4% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 430,090 shares of the company’s stock worth $1,742,000 after purchasing an additional 390,022 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in shares of Honest by 68.1% during the 2nd quarter. Dimensional Fund Advisors LP now owns 943,618 shares of the company’s stock worth $2,755,000 after purchasing an additional 382,418 shares in the last quarter. Institutional investors and hedge funds own 45.54% of the company’s stock.

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.