As of Friday close, The Honest Company Inc.’s (NASDAQ:HNST) stock was down -$0.02, moving down -1.42 percent to $1.39. The average number of shares traded per day over the past five days has been 711,040 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.0200 fall in that time frame. In the last twenty days, the average volume was 720,780, while in the previous 50 days, it was 874,778.
Since last month, HNST stock retreated -12.58%. Shares of the company fell to $1.3500 on 08/11/23, the lowest level in the past month. A 52-week high of $4.32 was reached on 02/02/23 after having rallying from a 52-week low of $1.35. Since the beginning of this year, HNST’s stock price has dropped by -53.82% or -$1.6200, and marked a new high 7 times. However, the stock has declined by -67.84% since its 52-week high.
HNST stock investors should be aware that The Honest Company Inc. (HNST) stock had its last reported insider trading activity 22 days ago on Jul 28. Kennedy Kelly J., the EVP and CFO of the company, disposed of 1,260 shares for $1.47 on Jul 28. It resulted in a $1,852 divestment by the insider. Rexing Rick sold 9,961 shares at an average price of $1.66 on Jul 03. The insider now owns 460,757 shares following the transaction. On Jul 03, Chief People Officer Hoyt Janis sold 8,755 shares at $1.66 apiece. The transaction was valued at $14,533.
Valuation Metrics
The stock’s beta is 0.43. Besides these, the trailing price-to-sales (P/S) ratio of 0.38, the price-to-book (PB) ratio of 1.05.
Financial Health
In the three months ended June 29, The Honest Company Inc.’s quick ratio stood at 1.50, while its current ratio was 3.50, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 27.30% percent. In the year ended June 29, EBITDA margin amounted to -12.01%, whereas operating margins totaled -16.90%. Based on annual data, HNST earned $92.31 million in gross profit and brought in $313.65 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -34.10%. Return on equity (ROE) for the past 12 months was -40.70%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. HNST’s revenue rose 6.45% to $83.39 million during the quarter, while net income inched up to $83.9 million. While analysts expected The Honest Company Inc. to report -$0.13 quarterly earnings, the actual figure was -$0.14 per share, beating the consensus estimate by -7.70%. During the quarter, the company generated -$12.71 million in EBITDA. The liabilities of The Honest Company Inc. were 68.11 million at the end of its most recent quarter ended June 29, and its total debt was $33.77 million. The value of shareholders’ equity is $94.98 million.
Technical Picture
This quick technical analysis looks at The Honest Company Inc.’s (HNST) price momentum. With a historical volatility rate of 34.83%, the RSI 9-day stood at 38.02% on 18 August.
With respect to its five-day moving average, the current The Honest Company Inc. price is down by -1.42% percent or -$0.0200. At present, HNST shares trade -10.32% below its 20-day simple moving average and -17.75% percent below its 100-day simple moving average. However, the stock is currently trading approximately -14.20% below its SMA50 and -58.01% below its SMA200.
Stochastic coefficient K was 33.33% and Stochastic coefficient D was 38.05%, while ATR was 0.0796. Given the Stochastic reading of 19.05% for the 14-day period, the RSI (14) reading has been calculated as 38.88%.
Analyst Ratings
The Honest Company Inc. downgraded its rating on The Honest Company Inc. (NASDAQ: HNST) to a Market perform in a note to investors on March 17, 2023. The analysts firm previously had an Outperform rating on the stock.The Honest Company Inc. (HNST) has been rated Overweight by analysts. According to 0 brokerage firms, HNST is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate The Honest Company Inc. stock as buy, with 2 recommending it as overweight.
With a median target price of $1.85, the current consensus forecast for the stock is $1.00 – $2.00. Based on these forecasts, analysts predict The Honest Company Inc. (HNST) will achieve an average price target of $1.62.
