Honest (NASDAQ:HNST) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research downgraded shares of Honest (NASDAQ:HNST) from a hold rating to a strong sell rating in a research report sent to investors on Wednesday,Zacks.com reports.

Other equities analysts have also issued research reports about the company. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Honest in a research note on Thursday, January 22nd. JPMorgan Chase & Co. reiterated an “underweight” rating on shares of Honest in a research report on Friday, January 16th. Lake Street Capital lowered shares of Honest from a “buy” rating to a “hold” rating and set a $3.00 price objective on the stock. in a research report on Thursday, November 6th. B. Riley Financial reaffirmed a “buy” rating on shares of Honest in a report on Thursday, November 6th. Finally, Telsey Advisory Group reissued a “market perform” rating and set a $3.00 target price on shares of Honest in a research note on Thursday. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Honest currently has an average rating of “Reduce” and an average target price of $3.00.

Honest Stock Performance

HNST stock opened at $2.79 on Wednesday. Honest has a one year low of $2.07 and a one year high of $5.62. The firm has a market cap of $311.89 million, a PE ratio of -19.93 and a beta of 2.30. The firm’s fifty day moving average is $2.47 and its 200 day moving average is $3.09.

Honest (NASDAQ:HNST) last issued its quarterly earnings results on Wednesday, February 25th. The company reported ($0.21) EPS for the quarter, missing the consensus estimate of $0.02 by ($0.23). The company had revenue of $88.04 million during the quarter, compared to analysts’ expectations of $88.57 million. Honest had a positive return on equity of 4.47% and a negative net margin of 4.22%. Research analysts predict that Honest will post -0.07 earnings per share for the current fiscal year.

Honest announced that its board has approved a share buyback program on Friday, February 20th that permits the company to buyback $25.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 9.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Honest by 6.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,916 shares of the company’s stock valued at $235,000 after acquiring an additional 3,210 shares during the last quarter. Millennium Management LLC raised its position in Honest by 16.4% during the first quarter. Millennium Management LLC now owns 1,936,846 shares of the company’s stock worth $9,103,000 after acquiring an additional 272,765 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Honest by 18.1% in the first quarter. Goldman Sachs Group Inc. now owns 1,064,179 shares of the company’s stock valued at $5,002,000 after purchasing an additional 163,380 shares in the last quarter. Ethos Financial Group LLC acquired a new stake in shares of Honest in the second quarter valued at approximately $62,000. Finally, Geode Capital Management LLC increased its stake in shares of Honest by 10.5% during the 2nd quarter. Geode Capital Management LLC now owns 2,068,945 shares of the company’s stock worth $10,532,000 after purchasing an additional 196,218 shares in the last quarter. Institutional investors and hedge funds own 45.54% of the company’s stock.

Key Honest News

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Board authorized a $25.0 million share buyback (up to ~9.9% of shares), which investors often see as management signaling the stock is undervalued and that there will be buy-side support for the float. RTT News
• Positive Sentiment: Telsey Advisory Group reaffirmed a “market perform” rating with a $3.00 price target, offering a modest analyst-backed upside view versus current levels. Analyst Note
• Neutral Sentiment: Company released Q4 and full‑year 2025 results and held an earnings call; the transcript provides management commentary that investors will parse for underlying trends and margin/cost dynamics. Earnings Call Transcript
• Neutral Sentiment: Multiple outlets published earnings snapshots and call highlights summarizing operational context — useful for gauging whether the beat/miss was driven by one-time items or recurring trends. Q4 Snapshot
• Negative Sentiment: Q4 EPS missed by $0.23 (reported ($0.21) vs. $0.02 expected) and revenue was slightly below consensus at $88.04M vs. $88.57M; an EPS miss tends to pressure sentiment and valuation multiples. Press Release / Slides
• Negative Sentiment: Management updated FY2026 guidance with revenue of $306.0M–$312.0M, well below the consensus (~$340.2M), which is a significant headwind for forward estimates and likely drove some sell-side caution. Full Results / Guidance
• Negative Sentiment: Despite the buyback, the company’s near-term profitability is under pressure (negative margins in recent reporting and lowered top-line outlook), meaning sustained upside will depend on execution against guidance and margin recovery. Market Coverage

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.