Honest Company Inc is preparing for its first-ever fourth-quarter report
Honest Company Inc (NASDAQ:HNST) is preparing for its fourth-quarter earnings report, due out after the close tomorrow, March 24. Ahead of the event, the options pits are pricing in a post-earnings swing of 11.4%, which is lower than the 15.3% move the stock has averaged over the last three quarters. Of these reports, only the most recent was positive -- a 10.2% upswing in November.
Publicly traded since early May of 2021, Honest Company stock is down 25.3% since the start of 2022, and recently hit a March 14 record low of $5.01. The $5 level provided a floor for pullbacks in February and March, however, and kept the shares from dipping into penny stock territory. Today, HNST is down 1.3% to trade at $6.05, and looking to snap a six-day win streak.
Analysts are mostly bullish ahead of the earnings event, with seven of the nine in coverage carrying a "strong buy" rating, while the remaining two recommend a "hold." Plus, the 12-month consensus price target of $12.57 is a 107.9% premium to current levels.
Meanwhile, short interest makes up 8.2% of Honest stock's available float. In other words, it would take over three days to buy back these bearish bets, at HNST's average pace of trading.