The stock of The Honest Company Inc. (NASDAQ:HNST) increased by $0.03 on Friday to finish at $1.41, up 2.17 percent. The last five days have seen an average of 936,220 shares of common stock traded. 7 times new highs were reached in the current year, with a fall of -$1.6000. The average number of shares traded over the last 20 days was 707,830, while the average volume over the last 50 days totaled 893,404.
HNST stock dropped -20.34% since last month. On 08/11/23, the company’s shares reached a one-month low of $1.3500. The stock touched a high of $4.51 on 02/02/23, after rallying from a low of $1.35 in 52 weeks. The price of HNST stock has declined by -53.16% or -$1.6000 this year, reaching a new high 7 times. Still, the stock price is down -68.77% 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 17 days ago on Jul 28. On Jul 28, EVP and CFO Kennedy Kelly J. sold 1,260 shares at $1.47 each. This transaction resulted in the insider making $1,852. On Jul 03, Rexing Rick sold 9,961 shares at a price of US$1.66. After the transaction, the insider now owns 460,757 shares. Chief People Officer Hoyt Janis had earlier sold 8,755 shares on Jul 03 for $1.66 a share. The transaction was completed for $14,533.
Valuation Metrics
Beta for the stock is 0.45. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.39, the price-to-book (PB) ratio of 1.07.
Financial Health
For the three months ended June 29, The Honest Company Inc.’s quick ratio was 1.50, while its current ratio was 3.50, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 27.30% percent. The Honest Company Inc.’s EBITDA margin for the year ended June 29 was -12.01%, whereas its operating margin stood at -16.90% for the same period. Based on annual data, it had gross profit of $92.31 million and revenue of $313.65 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. HNST’s return on assets (ROA) during the last 12 months has been -25.30%. There was a -34.10% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -40.70%.
Earnings Surprise
According to The Honest Company Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $83.9 million, while revenues rose by 6.45% to $83.39 million. It was predicted that The Honest Company Inc.’s quarterly earnings would be -$0.14, but it ended up being -$0.13, beating the consensus by -7.70%. EBITDA was -$12.71 million for the quarter. At the end of The Honest Company Inc.’s most recent quarter ended June 29, its liabilities totaled 68.11 million, while its total debt was $33.77 million. Equity owned by shareholders amounts to $94.98 million.
Technical Picture
Here’s a quick look at The Honest Company Inc.’s (HNST) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 36.19%, suggesting the stock is Neutral, with a 24.61% historical volatility rate.
The stochastic %K and %D were 18.97% and 16.17% respectively, while the average true range (ATR) was 0.0853. Based on the 14-day stochastic reading of 27.27%, the RSI (14) reading is 37.61%. On the 9-day MACD Oscillator, the stock is at -0.0244, and the 14-day reading is at -0.0560.
Analyst Ratings
The Honest Company Inc. (NASDAQ: HNST) was downgraded by Telsey Advisory Group to a a Market perform rating in its latest research report. The stock was previously rated as a an Outperform.
