The Honest Company Inc. (NASDAQ: HNST) stock fell -11.03% on Friday to $1.21 against a previous-day closing price of $1.36. With 6.35 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.77 million shares. During the session, the Household & Personal Products company that operates in wider Consumer Defensive sector, reached to the highest price of $1.2600 whereas the lowest price it dropped to was $1.0900. The 52-week range on HNST shows that it touched its highest point at $4.31 and its lowest point at $1.30 during that stretch. It currently has a 1-year price target of $1.62. Beta for the stock currently stands at 0.44.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HNST was down-trending over the past week, with a drop of -14.18%, but this was down by -17.12% over a month. Three-month performance dropped to -30.46% while six-month performance fell -34.95%. The stock lost -70.49% in the past year, while it has lost -59.80% so far this year. A look at the trailing 12-month EPS for HNST yields -0.61 with Next year EPS estimates of -0.31. For the next quarter, that number is -0.12. This implies an EPS growth rate of -24.70% for this year and 43.60% for next year.
Float and Shares Shorts:
At present, 94.10 million HNST shares are outstanding with a float of 73.37 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.85 million, which was 3.00% higher than short shares on Jul 30, 2023. In addition to Ms. Jessica Marie Warren as the firm’s Founder, Chief Creative Officer & Director, Ms. Kelly J. Kennedy serves as its EVP & CFO.
Through their ownership of 56.25% of HNST’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.43% of HNST, in contrast to 14.15% held by mutual funds. Shares owned by individuals account for 11.37%. As the largest shareholder in HNST with 6.13% of the stake, Portolan Capital Management LLC holds 5,825,650 shares worth 5,825,650. A second-largest stockholder of HNST, ArrowMark Colorado Holdings LLC, holds 2,746,206 shares, controlling over 2.89% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in HNST, holding 2,409,757 shares or 2.54% stake. With a 2.94% stake in HNST, the Fidelity Strategic Advisers Small is the largest stakeholder. A total of 2,788,602 shares are owned by the mutual fund manager. The Meridian Contrarian Fund, which owns about 2.89% of HNST stock, is the second-largest Mutual Fund holder. It holds 2,746,206 shares valued at 4.06 million. Vanguard Total Stock Market ETF holds 1.62% of the stake in HNST, owning 1,538,602 shares worth 2.28 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, HNST reported revenue of $78.49M and operating income of -$10.74M. The EBITDA in the recently reported quarter was -$10.07M and diluted EPS was -$0.11.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HNST since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With HNST analysts setting a high price target of $2.00 and a low target of $1.00, the average target price over the next 12 months is $1.62. Based on these targets, HNST could surge 65.29% to reach the target high and fall by -17.36% to reach the target low. Reaching the average price target will result in a growth of 33.88% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded HNST stock several times over the past three months with 0 Buys and 10 Sells. In these transactions, 0 shares were bought while 59,966 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 59 over the past year. The total number of shares bought during that period was 5,329,958 while 473,011 shares were sold.