LOS ANGELES—Stephen Winchell, Executive Vice President of Operations and R&D at Honest Company , Inc. (NASDAQ:HNST), has reported the sale of 7,123 shares of the company’s common stock. The shares were sold at a weighted average price of $7.10, amounting to a total transaction value of $50,573.
This transaction was part of a pre-approved sell-to-cover plan intended to address tax liabilities associated with the vesting of previously granted Restricted Stock Units (RSUs). Following this sale, Winchell retains ownership of 382,613 shares, which includes 306,403 RSUs payable in an equivalent number of shares of Honest Company's common stock.
The sale was executed as per the guidelines set by the company's Compensation Committee, ensuring compliance with internal policies and regulatory standards.
In other recent news, The Honest Co. has been making notable strides in the financial sector. The company reported a record third-quarter revenue of $99 million, marking a 15% increase year-over-year, and an expanded gross margin of 39%. Adjusted EBITDA for the quarter was $7 million, sustaining a positive trajectory for the fourth consecutive quarter. Lake Street Capital Markets has increased its price target for The Honest Co. to $7.00, citing the company's recent financial performance, which surpassed market expectations. Loop Capital also raised its price target for The Honest Co. to $7.00, following the company's strong year-to-date performance. Telsey Advisory Group, on the other hand, increased its price target for The Honest Co. to $6.00, maintaining a Market Perform rating on the stock. These recent developments highlight The Honest Co.'s consistent performance and positive earnings reports over the past several quarters. Despite a non-recurring legal expense of $4.1 million, with an expected additional $4 million to $5 million in the upcoming quarter, the company projects revenue growth in the high single-digit percentage range for the full year.
InvestingPro Insights
The recent stock sale by Stephen Winchell comes amid a period of significant growth for The Honest Company's share price. According to InvestingPro data, HNST has seen a remarkable 355.97% price total return over the past year, with a particularly strong 94.37% gain in the last month alone. This surge in stock value provides context for the timing of the executive's sale, which was primarily for tax purposes.
Despite the positive stock performance, InvestingPro Tips highlight some important factors for investors to consider. The company is not currently profitable, with a negative operating income of $4.07 million in the last twelve months. Additionally, analysts do not anticipate the company to be profitable this year. However, The Honest Company does hold more cash than debt on its balance sheet, which could provide financial flexibility as it works towards profitability.
The stock's recent performance has pushed its valuation metrics higher, with a Price to Book ratio of 5.52, which InvestingPro Tips indicate is relatively high. This elevated valuation, combined with the RSI suggesting the stock is in overbought territory, may warrant caution for potential investors.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for HNST, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.