LOS ANGELES—Jonathan Mayle, Senior Vice President of Customer Sales at Honest Company , Inc. (NASDAQ:HNST), recently sold 2,332 shares of the company’s common stock. The shares were sold at a weighted average price of $7.10, resulting in a total transaction value of $16,557.
This transaction was part of a pre-approved sell-to-cover plan established by the company’s Compensation Committee, aimed at covering tax liabilities associated with the vesting of Restricted Stock Units (RSUs). Following this sale, Mayle retains ownership of 275,173 shares, which includes 269,870 RSUs that are convertible to an equivalent number of common shares.
The shares were sold in multiple transactions, with prices ranging from $7.10 to $7.16.
In other recent news, The Honest Co. has been making significant strides in the financial sector, with Lake Street Capital Markets, Loop Capital, and Telsey Advisory Group all adjusting their price targets upward based on recent developments. Lake Street Capital Markets increased its price target to $7.00, citing a 9.3% growth in channel consumption and improvements in gross and EBITDA margins. Loop Capital also raised its price target to $7.00, noting a 15% sales increase in Q3, largely driven by demand for baby products and wipes. Telsey Advisory Group increased its price target to $6.00, recognizing the company's consistent performance and positive earnings reports over the past several quarters.
In addition to these upgrades, The Honest Co. reported a record third-quarter revenue of $99 million, marking a 15% increase year-over-year, and an expanded gross margin of 39%. This is the fourth consecutive quarter of positive results, with adjusted EBITDA reaching $7 million. The company's CEO, Carla Vernon, and CFO, Dave Loretta, revealed an optimistic full-year guidance with expectations for revenue growth in the high single-digit percentage range and adjusted EBITDA between $20 million and $22 million.
However, a non-recurring legal expense of $4.1 million was reported, with an expected additional $4 million to $5 million in the upcoming quarter. Despite this, the company projects revenue growth in the high single-digit percentage range for the full year and anticipates an annual gross margin between 37% and 38%. These recent developments highlight The Honest Co.'s ongoing financial performance and market potential.
InvestingPro Insights
The recent stock sale by Jonathan Mayle comes at a time when The Honest Company (NASDAQ:HNST) is experiencing significant market momentum. 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 price aligns with the timing of Mayle's sale, which occurred at a weighted average price of $7.10 per share.
InvestingPro Tips highlight that HNST holds more cash than debt on its balance sheet, indicating a solid financial position. This could be reassuring for investors, especially considering the company's recent stock performance. However, it's worth noting that analysts do not anticipate the company will be profitable this year, which may explain the need for careful financial management.
The stock's recent performance has pushed it into potentially overbought territory, according to the Relative Strength Index (RSI) mentioned in another InvestingPro Tip. This could suggest that the stock's rapid ascent might face some resistance in the near term.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for HNST, providing a deeper understanding of the company's financial health and market position.
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