Options Traders Blast Honest Stock After Revenue Beat

HNST is eyeing a close above the 60-day moving average

Digital Content Manager
Nov 11, 2021 at 3:27 PM
facebook twitter linkedin

The shares of Honest Company Inc (NASDAQ:HNST) are surging today, last seen up 12.3% at $9.99, after the company reported a third-quarter revenue beat, while quarterly losses were in line with analysts' estimates. The brand of eco-friendly baby, beauty and household products saw sales of diapers and wipes grow 16%, while sales of skin and personal care items jumped 28%. 

Despite the results, J.P. Morgan Securities cut the equity's target price to $12 from $13 earlier. Analysts are optimistic towards Honest stock, though, with seven of the nine in coverage calling it a "strong buy," while the remaining two carry a tepid "hold" rating. Plus, the equity's 12-month consensus target price of $13.69 is a significant 37.8% premium to current levels.

Meanwhile, short sellers have been piling on the security, leaving it ripe for a short squeeze. Short interest rose 23.6% over the last two reporting periods, and the 8.79 million shares sold short make up a whopping 12.3% of the stock's available float, or more than a week's worth of pent-up buying power.

Honest stock is now eyeing its second close at or above the 60-day moving average since the trendline first came into place in late July. The equity had been middling around the $9 mark over the last few weeks, after nearly halving from its initial public offering (IPO) price of $16. HNST has shed 33.5% in the last six months.

HNST 60 Day

Options traders have been quick to jump in on the action. So far, 2,882 calls and 2,166 puts have been exchanged, which is four times what is typically seen at this point. Most popular is the November 10 call, followed by the 10 put in that same monthly series.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners