James D. White, a director at Honest Company , Inc. (NASDAQ:HNST), recently sold 25,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $7.19, totaling approximately $179,750. Following this transaction, White holds 284,244 shares, which includes 60,569 restricted stock units convertible to common stock. The stock sales were executed on November 20, 2024.
In other recent news, The Honest Co. reported a record third-quarter revenue of $99 million, marking a 15% increase year-over-year, and an expanded gross margin of 39%. The company's CEO, Carla Vernon, and CFO, Dave Loretta, revealed an optimistic full-year guidance with expectations for revenue growth in the high single-digit percentage range and adjusted EBITDA between $20 million and $22 million.
Lake Street Capital Markets and Loop Capital have both upgraded their price targets for The Honest Co. to $7.00, maintaining their Buy ratings. This adjustment is based on the company's robust financial performance, which includes consistent year-over-year growth and a strong balance sheet.
Telsey Advisory Group also increased its price target for The Honest Co. to $6.00, while retaining a Market Perform rating on the stock. This adjustment reflects the company's consistent performance and positive earnings reports over the past several quarters. The firm is recognized for appealing to a modern, conscious consumer base and for its strong digital presence.
In addition, The Honest Co. reported a non-recurring legal expense of $4.1 million, with an expected additional $4 million to $5 million in the upcoming quarter. Despite this, the company projects revenue growth in the high single-digit percentage range for the full year and anticipates an annual gross margin between 37% and 38%. These are the recent developments in the company's financial performance.
InvestingPro Insights
The recent insider sale by James D. White at Honest Company, Inc. (NASDAQ:HNST) comes at a time when the stock is experiencing significant momentum. According to InvestingPro data, HNST has seen a remarkable 381.13% price total return over the past year, with a 105.09% surge in the last month alone. This strong performance has pushed the stock to trade near its 52-week high, with the current price at 98.01% of that peak.
InvestingPro Tips highlight that HNST holds more cash than debt on its balance sheet, which could be seen as a positive sign for financial stability. However, the company is not currently profitable, with a negative operating income of $4.07 million in the last twelve months as of Q3 2024. Despite this, HNST has shown revenue growth of 9.77% over the same period, reaching $368.77 million.
Investors should note that the stock's recent performance has led to a high Price / Book multiple of 5.77, which may indicate that the stock is priced at a premium compared to its book value. Additionally, an InvestingPro Tip suggests that the stock's RSI indicates it may be in overbought territory, which could be relevant for those considering the timing of investments.
For a more comprehensive analysis, InvestingPro offers 13 additional tips for HNST, providing deeper insights into the company's financial health and market position.
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