The Honest Company Inc. (NASDAQ:HNST) finished Wednesday with a subtraction of -$0.02 to close at $1.39, a downside of -1.42 percent. An average of 904,900 shares of common stock have been traded in the last five days. There was a fall of -$0.0800 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 680,675 shares traded, while the 50-day average volume stands at 921,654.
HNST stock has decreased by -19.19% in the last month. The company shares reached their 1-month lowest point of $1.3500 on 08/09/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $1.35 and a high of $4.51 in 52 weeks. It has reached a new high 7 times so far this year and lost -53.82% or -$1.6200 in price. In spite of this, the price is down -69.21% from the 52-week high.
Insider Transactions
HNST stock investors should be aware that The Honest Company Inc. (HNST) stock had its last reported insider trading activity 13 days ago on Jul 28. In this transaction, the insider spent $1,852. Chief Revenue Officer, Rexing Rick, disposed of 9,961 shares at a price of $1.66 on Jul 03. The insider now owns more than $16,535 worth of shares. Prior to that, Chief People Officer Hoyt Janis went on to Sale 8,755 shares at $1.66 each on Jul 03. An amount of $14,533 was transacted.
Valuation Metrics
The Honest Company Inc. (HNST) stock’s beta is 0.45. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.40, the price-to-book (PB) ratio at 0.99.
Financial Health
The quick ratio of The Honest Company Inc. for the three months ended March 30 was 1.20, and the current ratio was 3.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending March 30. The Honest Company Inc.’s EBITDA margin for the year ending March 30 is -12.01%, while its operating margin for the same period stands at -16.40%. Its gross profit as reported stood at $92.31 million compared to revenue of $313.65 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, The Honest Company Inc.’s return on assets was -22.10%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$13.42 million in the quarter, while revenues of -$18.87 million were grew 25.41%. The analyst consensus anticipated The Honest Company Inc.’s latest quarter earnings to come in at -$0.13 per share, but it turned out to be -$0.2, a -53.80% surprise. For the quarter, EBITDA amounted to -$12.71 million. At the end of the quarter ending March 30, The Honest Company Inc.’s stock balance sheet showed total liabilities of 68.11 million. Shareholders own equity worth $94.98 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at The Honest Company Inc. (HNST) price momentum. RSI 9-day as of the close on 09 August was 28.75%, suggesting the stock is oversold, with historical volatility in this time frame at 26.78%.
As of today, HNST’s price is $1.4040 -5.44% or -$0.0800 from its 5-day moving average. HNST is currently trading -21.02% lower than its 20-day SMA and -25.27% lower than its 100-day SMA. However, the stock’s current price level is -7.95% below the SMA50 and -56.56% below the SMA200.
The stochastic %K and %D were 14.25% and 13.04%, respectively, and the average true range (ATR) was 0.0858. With the 14-day stochastic at 16.00% and the average true range at 0.0864, the RSI (14) stands at 34.02%. The stock has reached -0.0444 on the 9-day MACD Oscillator while the 14-day reading was at -0.0733.
Analyst Ratings
Telsey Advisory Group downgraded The Honest Company Inc. (NASDAQ: HNST) to a a Market perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for The Honest Company Inc. (HNST) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell HNST, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.
What is HNST’s price target for the next 12 months?
Analysts predict a range of price targets between $1.00 and $2.00, with a median target of $1.85. Taking a look at these predictions, the average price target given by analysts for The Honest Company Inc. (HNST) stock is $1.62.
