Honest (NASDAQ:HNST) Upgraded by Freedom Capital to “Strong-Buy” Rating

Honest (NASDAQ:HNST) was upgraded by equities researchers at Freedom Capital from a “hold” rating to a “strong-buy” rating in a report issued on Thursday,Zacks.com reports.

A number of other brokerages have also recently commented on HNST. Northland Securities set a $5.50 price target on Honest in a research note on Thursday. Telsey Advisory Group lifted their price objective on shares of Honest from $4.00 to $5.00 and gave the stock a “market perform” rating in a research note on Thursday. Alliance Global Partners restated a “buy” rating on shares of Honest in a report on Thursday. Morgan Stanley set a $3.40 price objective on shares of Honest in a report on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Honest in a research note on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $4.38.

Honest Stock Up 0.7%

Shares of Honest stock opened at $5.46 on Thursday. The business has a fifty day simple moving average of $3.78 and a 200 day simple moving average of $3.19. The stock has a market cap of $601.04 million, a PE ratio of -49.64 and a beta of 2.12. Honest has a 12 month low of $2.07 and a 12 month high of $5.84.

Honest (NASDAQ:HNST) last released its earnings results on Wednesday, August 5th. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.03. Honest had a positive return on equity of 4.26% and a negative net margin of 3.56%.The firm had revenue of $80.19 million for the quarter, compared to analyst estimates of $77.83 million. Analysts expect that Honest will post 0.1 EPS for the current fiscal year.

Insiders Place Their Bets

In other Honest news, General Counsel Brendan Sheehey sold 9,784 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $3.14, for a total value of $30,721.76. Following the completion of the sale, the general counsel directly owned 715,888 shares in the company, valued at $2,247,888.32. This represents a 1.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Curtiss James Bruce III sold 12,669 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $3.14, for a total value of $39,780.66. Following the sale, the chief financial officer directly owned 526,157 shares in the company, valued at approximately $1,652,132.98. This represents a 2.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 175,058 shares of company stock valued at $550,591. Insiders own 9.40% of the company’s stock.

Hedge Funds Weigh In On Honest

Several institutional investors and hedge funds have recently modified their holdings of the business. UBS Group AG raised its holdings in Honest by 77.3% during the 4th quarter. UBS Group AG now owns 1,014,939 shares of the company’s stock worth $2,619,000 after buying an additional 442,542 shares during the period. Wealthfront Advisers LLC boosted its holdings in shares of Honest by 24.0% in the fourth quarter. Wealthfront Advisers LLC now owns 25,177 shares of the company’s stock valued at $65,000 after buying an additional 4,873 shares during the period. SG Americas Securities LLC boosted its holdings in shares of Honest by 122.3% in the fourth quarter. SG Americas Securities LLC now owns 36,461 shares of the company’s stock valued at $94,000 after buying an additional 20,059 shares during the period. Deutsche Bank AG bought a new stake in shares of Honest during the second quarter worth $328,000. Finally, State of Wyoming bought a new stake in shares of Honest during the second quarter worth $75,000. 45.54% of the stock is currently owned by institutional investors and hedge funds.

Honest News Summary

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Q2 results beat expectations: Honest reported adjusted earnings of $0.04 per share, ahead of estimates ranging from $0.01 to $0.02 and up from $0.03 a year earlier. Revenue reached $80.19 million versus the $77.83 million consensus estimate. Honest Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Raised 2026 outlook: Management increased its fiscal-year 2026 forecast to $319 million-$325 million in revenue and $23 million-$25 million in adjusted EBITDA, signaling confidence in profitability and operating execution. Honest Outlines Raised FY2026 Outlook
• Positive Sentiment: Analyst earnings estimates increased: Northland Securities raised its Q3 and Q4 2026 EPS forecasts to $0.03 from $0.02, while maintaining a $0.10 full-year consensus estimate. Honest analyst estimates
• Neutral Sentiment: Strategic changes are showing progress: An analysis argues that Honest’s strategic exits are beginning to improve the business, but investors may need further evidence that the gains can be sustained. The Honest Company: Strategic Exits Are Starting To Work
• Negative Sentiment: Execution concerns remain: Another assessment says Honest is still awaiting more consistent improvements, highlighting the risk that recent operating gains may not yet represent a durable turnaround. The Honest Company – Awaiting More Consistent Improvements
• Neutral Sentiment: B. Riley raised its price target to $5 from $4 and retained a “Buy” rating, although the new target is below the recent trading level, limiting its immediate upside implication.

About Honest

The Honest Company, Inc (NASDAQ: HNST) is an American consumer goods firm specializing in eco-friendly and responsibly formulated products for babies, personal care, beauty and home cleaning. The company emphasizes transparency in ingredient sourcing and product safety, positioning itself in the premium segment of mass-market retail and direct-to-consumer channels.

Honest was founded in 2011 by actress Jessica Alba and environmental health advocate Christopher Gavigan with a mission to offer parents household and baby care items free from harsh chemicals and synthetic fragrances.