Honest Stock Moves Lower Despite Revenue Jump

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

Fernanda Horner

Digital Content Manager

Aug 12, 2022 at 11:03 AM

HNST

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.

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