Honest (NASDAQ:HNST) Stock Keeps “Buy” Rating at B. Riley Financial

B. Riley Financial restated their buy rating on shares of Honest (NASDAQ:HNST) in a research report released on Friday,Benzinga reports. The brokerage currently has a $5.50 target price on the stock, up from their previous target price of $5.00.

A number of other equities analysts have also issued reports on the company. Freedom Capital raised Honest from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 6th. Telsey Advisory Group increased their target price on Honest from $4.00 to $5.00 and gave the stock a “market perform” rating in a research report on Thursday, August 6th. Weiss Ratings downgraded Honest from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday. Morgan Stanley boosted their target price on Honest from $3.40 to $5.70 and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. Finally, Alliance Global Partners reaffirmed a “buy” rating on shares of Honest in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $5.42.

Honest Stock Up 5.2%

Shares of Honest stock traded up $0.23 on Friday, hitting $4.67. The company’s stock had a trading volume of 5,461,777 shares, compared to its average volume of 1,857,073. Honest has a 52-week low of $2.07 and a 52-week high of $6.01. The company has a market capitalization of $514.07 million, a P/E ratio of 6.77 and a beta of 2.48. The firm has a fifty day moving average price of $5.12 and a 200-day moving average price of $3.82.

Honest (NASDAQ:HNST) last released its earnings results on Thursday, November 5th. The company reported $0.03 earnings per share (EPS) for the quarter. Honest had a negative net margin of 3.56% and a positive return on equity of 4.31%. The company had revenue of $84.61 million for the quarter, compared to analyst estimates of $80.79 million. As a group, analysts expect that Honest will post 0.05 earnings per share for the current year.

Insider Buying and Selling

In other Honest news, Director Andrea Turner sold 29,899 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $5.21, for a total transaction of $155,773.79. Following the transaction, the director owned 252,405 shares in the company, valued at $1,315,030.05. This represents a 10.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Carla Vernón sold 117,893 shares of the company’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $4.99, for a total value of $588,286.07. Following the sale, the chief executive officer owned 3,828,558 shares of the company’s stock, valued at $19,104,504.42. The trade was a 2.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 294,149 shares of company stock worth $1,503,306 in the last 90 days. 9.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Honest

Several institutional investors have recently added to or reduced their stakes in HNST. Russell Investments Group Ltd. boosted its position in shares of Honest by 155.0% in the third quarter. Russell Investments Group Ltd. now owns 108,892 shares of the company’s stock valued at $559,000 after acquiring an additional 66,194 shares during the period. Knights of Columbus Asset Advisors LLC raised its holdings in Honest by 0.5% in the third quarter. Knights of Columbus Asset Advisors LLC now owns 520,924 shares of the company’s stock worth $2,672,000 after purchasing an additional 2,439 shares in the last quarter. Vise Technologies Inc. increased its position in Honest by 10.0% during the 3rd quarter. Vise Technologies Inc. now owns 44,272 shares of the company’s stock valued at $227,000 after buying an additional 4,020 shares in the last quarter. State of Wyoming boosted its stake in Honest by 488.4% during the 3rd quarter. State of Wyoming now owns 120,765 shares of the company’s stock valued at $620,000 after purchasing an additional 100,241 shares during the last quarter. Finally, Prime Capital Investment Advisors LLC purchased a new position in shares of Honest during the third quarter valued at approximately $196,000. Institutional investors own 45.54% of the company’s stock.

Trending Headlines about Honest

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Q3 revenue of $84.6 million beat analyst estimates of $80.79 million, while organic revenue grew 9.2%. Gross margin increased 7.7 percentage points to 45.0%, and adjusted EBITDA rose to $6.3 million, with a 7.9% margin. Reported net income was $91.3 million, but underlying adjusted net income was $3.1 million, so the reported figure should not be taken as a measure of recurring profitability. Third-quarter results
• Positive Sentiment: Honest raised its 2026 adjusted EBITDA outlook to $25 million–$26 million and authorized a $30 million share repurchase, signaling improved expectations and a commitment to return capital to shareholders. Outlook and buyback
• Positive Sentiment: B. Riley reaffirmed its Buy rating and raised its price target to $5.50 from $5.00. Analyst rating
• Neutral Sentiment: Full-year 2026 revenue guidance of $322 million–$325 million is broadly in line with the $322.5 million consensus estimate. Company outlook
• Negative Sentiment: Despite organic growth and the quarterly revenue beat, reported Q3 revenue fell 8.6% year over year, a sign that headline sales trends remain a concern. Quarterly results

About Honest

The Honest Company, Inc is a consumer products company that develops and sells personal care, beauty, baby, and household products. Its offerings include diapers, wipes, baby care items, skin care, hair care, personal care products, and household cleaning solutions, with an emphasis on ingredient transparency and products positioned as safer and more sustainable alternatives.

Founded in 2011 by actress and entrepreneur Jessica Alba, Honest sells its products through its website and retail partners.