Analysts Target Honest Stock Amid Record Lows

The company reported worse-than-expected second-quarter results on Friday

Deputy Editor
Aug 16, 2021 at 10:39 AM
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Honest Company Inc (NASDAQ:HNST) stock struggled for direction this morning before heading lower. The stock was last seen down 3.2% at $9.74, adding to Friday's 28.3% plummet -- a reaction to dismal second-quarter results.

Today, the environmentally sustainable household products name is back in the spotlight due to several analyst notes. More specifically, Guggenheim upgraded the stock to "buy" from "neutral," while Morgan Stanley cut its rating to "equal weight" from "overweight," while lowering its price target to $11 from $17.50. No fewer than three other analysts slashed their price targets as well.

The security is trading at record lows as a result of the mostly negative analyst chatter, as HNST has only been publicly traded since early May. In the last three months, the equity is down roughly 39%. It's also worth noting that Honest Company stock has landed on the Short Sale Restricted (SSR) list, thanks to last session's bear gap. 

Ahead of today's adjustments, seven of the nine analysts in coverage carried a "buy" or better rating on the security. Plus, the 12-month consensus price target of $15.38 is a 59.1% premium to current levels. 

Options traders are chiming in today as well, though with relatively low absolute volume. So far, 1,554 calls and 1,028 puts have crossed the tape -- six times what's typically seen at this point. The August 10 call is the most popular, followed by the 10 put in the same monthly series. 



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