The Honest Company Inc. (NASDAQ:HNST) closed Wednesday at $3.00 per share, down from $3.10 a day earlier. While The Honest Company Inc. has underperformed by -3.23%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, HNST fell by -56.08%, with highs and lows ranging from $6.85 to $2.54, whereas the simple moving average fell by -13.14% in the last 200 days.
On June 09, 2022, Loop Capital Downgraded The Honest Company Inc. (NASDAQ: HNST) to Hold. A report published by BofA Securities on March 28, 2022, Downgraded its rating to ‘Underperform’ for HNST. Jefferies also Downgraded HNST shares as ‘Hold’, setting a target price of $5 on the company’s shares in a report dated March 25, 2022. Guggenheim August 16, 2021d its ‘Neutral’ rating to ‘Buy’ for HNST, as published in its report on August 16, 2021. Morgan Stanley’s report from August 16, 2021 suggests a price prediction of $11 for HNST shares, giving the stock a ‘Equal-Weight’ rating. Loop Capital also rated the stock as ‘Buy’.
Analysis of The Honest Company Inc. (HNST)
Further, the quarter-over-quarter increase in sales is 2.30%, showing a positive trend in the upcoming months.
There are several well-rounded types of analysis and research techniques that can be used to gain a clear view of The Honest Company Inc.’s future performance, with equity being one of the most critical indicators. The goal here is to ensure that your current return on equity of -22.30% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.50, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
As an indicator of volatility for any stock, average volume can also be very valuable, and HNST is recording an average volume of 1.08M. On a monthly basis, the volatility of the stock is set at 6.02%, whereas on a weekly basis, it is put at 5.99%, with a loss of -3.54% over the past seven days. Furthermore, long-term investors anticipate a median target price of $4.25, showing growth from the present price of $3.00, which can serve as yet another indication of whether HNST is worth investing in or should be passed over.
How Do You Analyze The Honest Company Inc. Shares?
Apart from looking at the fundamentals, you should also pay attention to the number of company employees who own shares. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 4.30%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 56.60% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in HNST shares?
The recent increase in stakes in HNST appears to be a result of several institutional investors and hedge funds increasing their positions. BlackRock Fund Advisors’s position in HNST has increased by 2.91% in the first quarter. The company now owns 4,063,587 shares of the stock, with a value of $12.23 million, following the purchase of 114,745 additional shares during the last quarter. The Vanguard Group, Inc. made another decreased to its shares in HNST during the first quarter, downing its stake by -13.30%. During the last quarter, the company dropped down -403,104 additional shares for a total stake of worth $7.91 million, bringing number of shares owned by the company to 2,628,805.
During the first quarter, Columbia Management Investment Ad subtracted a -125,777 position in HNST. Norges Bank Investment Management purchased an additional 1.35 million shares in the last quarter, increasing its holdings by 367.64%, now holding 1.71 million shares worth $5.15 million. HNST shares are owned by institutional investors to the tune of 56.60% at present.