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

Shares of The Honest Company, Inc. (NASDAQ:HNST) 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 traded.

Analysts Set New Price Targets

HNST has been the topic of several research reports. Loop Capital downgraded Honest from a “buy” rating to a “hold” rating and set a $7.00 price objective on the stock. in a report on Tuesday. Northland Securities raised their price target on Honest from $7.50 to $9.50 and gave the company an “outperform” rating in a research note on Wednesday, December 4th. B. Riley increased their target price on shares of Honest from $6.50 to $7.00 and gave the stock a “buy” rating in a report on Wednesday, November 13th. Alliance Global Partners boosted 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. Finally, Telsey Advisory Group upped their price target on shares of Honest from $4.00 to $6.00 and gave the stock a “market perform” rating in a research report on Wednesday, November 13th. Three investment analysts have rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $6.79.

Honest Stock Performance

The firm has a market capitalization of $658.27 million, a PE ratio of -163.00 and a beta of 2.42. The firm’s 50 day moving average price is $5.83 and its 200-day moving average price is $4.30.

Insider Buying and Selling at Honest

In related news, EVP Stephen Winchell sold 7,123 shares of the company’s stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $7.10, for a total transaction of $50,573.30. Following the completion of the transaction, the executive vice president now owns 382,613 shares in the company, valued at $2,716,552.30. This represents a 1.83 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Brendan Sheehey sold 107,653 shares of Honest stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $7.01, for a total value of $754,647.53. Following the completion of the sale, the general counsel now owns 517,861 shares in the company, valued at approximately $3,630,205.61. The trade was a 17.21 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 799,818 shares of company stock valued at $5,975,421. Company insiders own 8.60% of the company’s stock.

Institutional Investors Weigh In On Honest

A number of hedge funds have recently modified their holdings of the business. Connor Clark & Lunn Investment Management Ltd. grew its holdings in Honest by 216.0% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 545,323 shares of the company’s stock valued at $1,947,000 after buying an additional 372,749 shares in the last quarter. Walleye Capital LLC purchased a new position in Honest during the 3rd quarter valued at about $260,000. Harbor Capital Advisors Inc. boosted its stake in shares of Honest by 122.5% in the third quarter. Harbor Capital Advisors Inc. now owns 219,697 shares of the company’s stock valued at $784,000 after purchasing an additional 120,937 shares during the period. Mainstream Capital Management LLC purchased a new position in Honest in the 3rd quarter valued at approximately $843,000. Finally, Inspire Investing LLC acquired a new position in Honest during the 3rd quarter worth $806,000. 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.