The company is undervalued at 5.75 per share with modest projections ahead.
The company retains a Market Volatility (i.e., Beta) of 1.8309, which attests to a somewhat significant risk relative to the market. Let's try to break down what Honest's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Honest will likely underperform. Even though it is essential to pay attention to
Honest current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy towards determining any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Honest exposes twenty-seven different technical indicators, which can help you to evaluate its performance.
Honest has an expected return of -0.93%. Please be advised to check out Honest
total risk alpha, as well as the
relationship between the downside variance and
daily balance of power to decide if
Honest performance from the past will be repeated at some point in the near future.
The performance of Honest Company in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Honest's
stock prices. When investing in Honest, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Honest Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Honest carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Honest's Liquidity
Honest
financial leverage refers to using borrowed capital as a funding source to finance Honest Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Honest financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Honest's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Honest's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Honest's total debt and its cash.
What do experts say about Honest?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusAnother Deeper Perspective
Honest secures a total of 91.03 Million outstanding shares. The majority of Honest
outstanding shares are owned by
outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Honest to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in The Honest. Please pay attention to any change in the institutional holdings of Honest as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
Ownership Breakdown
| Insiders7.9% | Institutions90.39% |
| Retail Investors | 1.71 |
| Insiders | 7.9 |
| Institutions | 90.39 |
Are Honest technical ratios showing a recoup?
Newest treynor ratio indicator falls down to -0.53. Possible price appreciation? The Honest exhibits very low volatility with skewness of -1.59 and kurtosis of 5.72. However, we advise investors to further study The Honest technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Honest's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Honest's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Honest Implied Volatility
Honest's implied volatility exposes the market's sentiment of The Honest stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Honest's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Honest stock will not fluctuate a lot when Honest's options are near their expiration.
Our Final Take On Honest
Whereas few other entities within the specialty retail industry are still a little expensive, even after the recent corrections, Honest may offer a potential longer-term growth to private investors. All things considered, as of the 13th of May 2022, our latest 90 days 'Buy-Sell' recommendation on the firm is
Hold. We believe Honest is
undervalued with
below average chance of financial distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Honest Company. Please refer to our
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