Honest Stock Moves Lower Despite Revenue Jump

The security is down more than 73% year-over-year

Digital Content Manager
Aug 12, 2022 at 11:03 AM
facebook twitter linkedin

Honest Company Inc (NASDAQ:HNST) stepped into the earnings confessional this morning to report wider-than-expected second-quarter losses, but the eco-friendly baby, beauty, and household products company also saw a 5% jump in revenue to $78 million, which bested analysts' estimates. Stronger demand for wipes and diapers contributed to this pop.

Nevertheless, the security is down 2.6% at $3.74 at last check. Honest stock has been climbing from a June 16, all-time low of $2.54, with support from the 40-day moving average in early July. Now, however, the shares are running into a ceiling at the $4.20 region. Year-over-year, HNST is down 73.5%.

Amid low absolute volume, 273 calls have crossed the tape so far today -- double what is usually seen at this point -- compared to just 35 puts. Most popular by a long shot is the September 5 call. 

Analysts are mostly skeptical of Honest stock, with five of the eight in question calling it a "hold" or worse. Plus, the 4.5 million shares sold short account for 6.2% of the equity's available float.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners