Is Honest Stock a Good Investment?
Honest Investment Advice | HNST |
- Examine Honest's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Honest's leadership team and their track record. Good management can help Honest navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Personal Care Products space and any emerging trends that could impact Honest's business and its evolving consumer preferences.
- Compare Honest's performance and market position to its competitors. Analyze how Honest is positioned in terms of product offerings, innovation, and market share.
- Check if Honest pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Honest's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Honest Company stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Honest Company is a good investment.
Sell | Buy |
Buy
Market Performance | Solid | Details | |
Volatility | Relatively risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Honest Stock
Researching Honest's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 14.0% of the company shares are held by company insiders. The company recorded a loss per share of 0.04. Honest Company had not issued any dividends in recent years.
To determine if Honest is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Honest's research are outlined below:
| Honest Company appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 344.37 M. Net Loss for the year was (39.24 M) with profit before overhead, payroll, taxes, and interest of 92.31 M. | |
| About 61.0% of the company shares are owned by institutional investors | |
| Latest headline from MacroaxisInsider: Disposition of 41250 shares by Brendan Sheehey of Honest at 5.66 subject to Rule 16b-3 |
Honest Quarterly Good Will |
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Honest uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Honest Company. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Honest's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of March 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Honest's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Honest's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-06-16 | 2021-03-31 | -0.06 | -0.05 | 0.01 | 16 | ||
2023-11-08 | 2023-09-30 | -0.12 | -0.09 | 0.03 | 25 | ||
2022-08-12 | 2022-06-30 | -0.08 | -0.11 | -0.03 | 37 | ||
2021-08-13 | 2021-06-30 | -0.14 | -0.17 | -0.03 | 21 | ||
2022-03-24 | 2021-12-31 | -0.06 | -0.1 | -0.04 | 66 | ||
2022-11-10 | 2022-09-30 | -0.08 | -0.13 | -0.05 | 62 | ||
2024-05-08 | 2024-03-31 | -0.07 | -0.01 | 0.06 | 85 | ||
2023-05-09 | 2023-03-31 | -0.13 | -0.2 | -0.07 | 53 |
Know Honest's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Honest is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Honest Company backward and forwards among themselves. Honest's institutional investor refers to the entity that pools money to purchase Honest's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 1.2 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1.1 M | Strs Ohio | 2024-09-30 | 1 M | State Street Corp | 2024-06-30 | 960.8 K | Qube Research & Technologies | 2024-06-30 | 885.2 K | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 851.4 K | Northern Trust Corp | 2024-09-30 | 649.1 K | Harbourvest Partners, Llc | 2024-09-30 | 475.6 K | Exoduspoint Capital Management, Lp | 2024-09-30 | 458.7 K | Catterton Management Company, L.l.c | 2024-09-30 | 9.4 M | Portolan Capital Management, Llc | 2024-06-30 | 8.1 M |
Honest's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 825.86 M.Market Cap |
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Honest's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.20) | (0.21) | |
| Return On Capital Employed | (0.27) | (0.28) | |
| Return On Assets | (0.19) | (0.20) | |
| Return On Equity | (0.32) | (0.30) |
Determining Honest's profitability involves analyzing its financial statements and using various financial metrics to determine if Honest is a good buy. For example, gross profit margin measures Honest's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Honest's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Honest's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Honest Company. Check Honest's Beneish M Score to see the likelihood of Honest's management manipulating its earnings.
Evaluate Honest's management efficiency
Honest Company has return on total asset (ROA) of (0.0126) % which means that it has lost $0.0126 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0329) %, meaning that it created substantial loss on money invested by shareholders. Honest's management efficiency ratios could be used to measure how well Honest manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.21 in 2024. Return On Capital Employed is likely to drop to -0.28 in 2024. At this time, Honest's Total Current Liabilities is comparatively stable compared to the past year. Change To Liabilities is likely to gain to about 12.7 M in 2024, whereas Liabilities And Stockholders Equity is likely to drop slightly above 190.3 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.30 | 1.37 | |
| Tangible Book Value Per Share | 1.28 | 1.34 | |
| Enterprise Value Over EBITDA | (8.54) | (8.97) | |
| Price Book Value Ratio | 2.53 | 2.66 | |
| Enterprise Value Multiple | (8.54) | (8.97) | |
| Price Fair Value | 2.53 | 2.66 | |
| Enterprise Value | 351.4 M | 477.2 M |
Leadership at Honest emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Beta 1.846 |
Basic technical analysis of Honest Stock
As of the 30th of November, Honest retains the Downside Deviation of 2.6, market risk adjusted performance of 0.8323, and Risk Adjusted Performance of 0.194. Honest technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.Honest's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Honest insiders, such as employees or executives, is commonly permitted as long as it does not rely on Honest's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Honest insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Honest's Outstanding Corporate Bonds
Honest issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Honest Company uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Honest bonds can be classified according to their maturity, which is the date when Honest Company has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Honest's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Honest's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.194 | |||
| Market Risk Adjusted Performance | 0.8323 | |||
| Mean Deviation | 3.24 | |||
| Semi Deviation | 2.13 | |||
| Downside Deviation | 2.6 | |||
| Coefficient Of Variation | 411.69 | |||
| Standard Deviation | 4.62 | |||
| Variance | 21.36 | |||
| Information Ratio | 0.2131 | |||
| Jensen Alpha | 0.94 | |||
| Total Risk Alpha | 0.3411 | |||
| Sortino Ratio | 0.3788 | |||
| Treynor Ratio | 0.8223 | |||
| Maximum Drawdown | 28.13 | |||
| Value At Risk | (3.66) | |||
| Potential Upside | 7.36 | |||
| Downside Variance | 6.76 | |||
| Semi Variance | 4.55 | |||
| Expected Short fall | (4.52) | |||
| Skewness | 2.32 | |||
| Kurtosis | 10.36 |
| Risk Adjusted Performance | 0.194 | |||
| Market Risk Adjusted Performance | 0.8323 | |||
| Mean Deviation | 3.24 | |||
| Semi Deviation | 2.13 | |||
| Downside Deviation | 2.6 | |||
| Coefficient Of Variation | 411.69 | |||
| Standard Deviation | 4.62 | |||
| Variance | 21.36 | |||
| Information Ratio | 0.2131 | |||
| Jensen Alpha | 0.94 | |||
| Total Risk Alpha | 0.3411 | |||
| Sortino Ratio | 0.3788 | |||
| Treynor Ratio | 0.8223 | |||
| Maximum Drawdown | 28.13 | |||
| Value At Risk | (3.66) | |||
| Potential Upside | 7.36 | |||
| Downside Variance | 6.76 | |||
| Semi Variance | 4.55 | |||
| Expected Short fall | (4.52) | |||
| Skewness | 2.32 | |||
| Kurtosis | 10.36 |
Consider Honest's intraday indicators
Honest intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Honest stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Honest Corporate Filings
F4 | 29th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 12th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 8th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
Honest Stock media impact
Far too much social signal, news, headlines, and media speculation about Honest that are available to investors today. That information is available publicly through Honest media outlets and privately through word of mouth or via Honest internal channels. However, regardless of the origin, that massive amount of Honest data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Honest news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Honest relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Honest's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Honest alpha.
Honest Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Honest can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Honest Company Historical Investor Sentiment
Investor biases related to Honest's public news can be used to forecast risks associated with an investment in Honest. The trend in average sentiment can be used to explain how an investor holding Honest can time the market purely based on public headlines and social activities around Honest Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Honest's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Honest and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Honest news discussions. The higher the estimate score, the more favorable the investor's outlook on Honest.
Honest Corporate Management
| Sharareh Parvaneh | Chief Officer | Profile | |
| Jennifer Rosenberg | VP Communications | Profile | |
| Kelly Kennedy | EVP CFO | Profile | |
| Steve Austenfeld | VP Relations | Profile | |
| Steve Winchell | Executive RD | Profile | |
| Nikolaos Vlahos | CEO Director | Profile |
Additional Tools for Honest Stock Analysis
When running Honest's price analysis, check to measure Honest's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honest is operating at the current time. Most of Honest's value examination focuses on studying past and present price action to predict the probability of Honest's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honest's price. Additionally, you may evaluate how the addition of Honest to your portfolios can decrease your overall portfolio volatility.