Short Interest in The Honest Company, Inc. (NASDAQ:HNST) Expands By 37.2%

The Honest Company, Inc. (NASDAQ:HNST) was the recipient of a large increase in short interest during the month of January. As of January 15th, there was short interest totalling 3,540,000 shares, an increase of 37.2% from the December 31st total of 2,580,000 shares. Based on an average trading volume of 3,330,000 shares, the short-interest ratio is currently 1.1 days. Currently, 4.9% of the shares of the stock are sold short.

Insider Buying and Selling at Honest

In other Honest news, CEO Carla Vernon sold 65,176 shares of the stock in a transaction on Wednesday, November 20th. The stock was sold at an average price of $7.10, for a total transaction of $462,749.60. Following the sale, the chief executive officer now owns 2,763,143 shares in the company, valued at approximately $19,618,315.30. This represents a 2.30 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel Brendan Sheehey sold 92,138 shares of the firm’s stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $8.13, for a total value of $749,081.94. Following the transaction, the general counsel now directly owns 516,816 shares of the company’s stock, valued at $4,201,714.08. The trade was a 15.13 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 799,818 shares of company stock worth $5,975,421. 8.60% of the stock is owned by corporate insiders.

Institutional Trading of Honest

Institutional investors and hedge funds have recently made changes to their positions in the company. Connor Clark & Lunn Investment Management Ltd. grew its position in Honest by 216.0% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 545,323 shares of the company’s stock valued at $1,947,000 after acquiring an additional 372,749 shares during the period. Walleye Capital LLC acquired a new position in shares of Honest in the 3rd quarter valued at about $260,000. Harbor Capital Advisors Inc. grew its holdings in shares of Honest by 122.5% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 219,697 shares of the company’s stock worth $784,000 after purchasing an additional 120,937 shares during the period. Mainstream Capital Management LLC acquired a new stake in Honest during the 3rd quarter worth approximately $843,000. Finally, Inspire Investing LLC purchased a new position in Honest in the third quarter valued at approximately $806,000. 45.54% of the stock is currently owned by institutional investors and hedge funds.

Honest Stock Performance

Shares of HNST stock opened at $6.28 on Thursday. The firm has a market capitalization of $634.03 million, a price-to-earnings ratio of -157.00 and a beta of 2.45. Honest has a one year low of $2.40 and a one year high of $8.97. The company has a 50 day moving average price of $7.02 and a 200 day moving average price of $5.09.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Loop Capital cut Honest from a “buy” rating to a “hold” rating and set a $7.00 price objective for the company. in a research report on Tuesday, December 17th. Northland Securities boosted their price objective on shares of Honest from $7.50 to $9.50 and gave the company an “outperform” rating in a research report on Wednesday, December 4th. B. Riley upped their price objective on shares of Honest from $6.50 to $7.00 and gave the company a “buy” rating in a research note on Wednesday, November 13th. Telsey Advisory Group lifted their target price on shares of Honest from $6.00 to $7.00 and gave the stock a “market perform” rating in a research note on Friday, January 10th. Finally, Alliance Global Partners increased their price target on Honest from $5.75 to $8.00 and gave the stock a “buy” rating in a research note on Wednesday, November 13th. Three analysts have rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $6.93.

Honest Company Profile

The Honest Company, Inc manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. The company also offers baby clothing and nursery bedding products. It sells its products through digital and retail sales channels, such as its website and third-party ecommerce sites, as well as brick and mortar retailers.