Insider Sell: CEO Carla Vernon Sells 209,160 Shares of The Honest Co Inc (HNST)
Carla Vernon, the CEO of The Honest Co Inc (NASDAQ:HNST), has sold 209,160 shares of the company on March 18, 2024, according to a recent SEC filing. The transaction was executed with the shares priced at $4.16 each, resulting in a total value of $870,105.60.
The Honest Co Inc (NASDAQ:HNST) is a consumer goods company known for its emphasis on ethical consumerism. The company specializes in products for babies, personal care, and cleaning, and is recognized for its commitment to providing products without potentially harmful chemicals and compounds. The Honest Co Inc aims to offer a range of products that are both safe and effective, catering to health-conscious consumers.
Over the past year, Carla Vernon has engaged in multiple transactions involving the company's stock. The insider has sold a total of 209,160 shares and purchased 100,000 shares. This latest sale represents a significant portion of Vernon's transactions in the company's stock over the period.
The insider transaction history for The Honest Co Inc (NASDAQ:HNST) indicates a trend of more insider selling than buying over the past year. There have been 3 insider buys and 33 insider sells during this timeframe.
On the valuation front, The Honest Co Inc (NASDAQ:HNST) had a market cap of $407.545 million on the day of the insider's recent transaction. The stock's price of $4.16 and a GuruFocus Value of $3.37 suggest a price-to-GF-Value ratio of 1.23, categorizing the stock as modestly overvalued according to GuruFocus metrics.
The GF Value is a proprietary valuation metric used by GuruFocus, which is calculated based on historical trading multiples such as the price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow. It also incorporates a GuruFocus adjustment factor that accounts for the company's historical returns and growth, as well as future business performance estimates provided by Morningstar analysts.
Investors and analysts often monitor insider transactions as they can provide insights into how the company's executives and directors view the stock's value. While insider selling does not always indicate a lack of confidence in the company, a high volume of selling, as seen in the case of The Honest Co Inc (NASDAQ:HNST), may lead market participants to scrutinize the company's valuation and future prospects more closely.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
