LOS ANGELES—Vernon Carla, Chief Executive Officer of Honest Company , Inc. (NASDAQ:), recently sold a significant portion of the company’s common stock. According to a filing with the Securities and Exchange Commission, Carla sold 65,176 shares on November 20, 2024. The shares were sold at a weighted average price of $7.10, totaling approximately $462,749.
The transaction was part of an approved sell-to-cover plan designed to address tax liabilities arising from the vesting of previously granted Restricted Stock Units (RSUs). Following the sale, Carla retains direct ownership of 2,763,143 shares, including 2,226,255 RSUs, which are convertible to an equivalent number of common shares.
This transaction is part of a routine financial strategy for executives, enabling them to manage tax obligations efficiently while maintaining substantial ownership in the company.
In other recent news, The Honest Co. has been the subject of several analyst upgrades, reflecting its strong financial performance. Lake Street Capital Markets raised its price target for the company to $7.00 while maintaining a Buy rating, citing a 9.3% growth in channel consumption and improvements in gross and EBITDA margins. Similarly, Loop Capital adjusted its price target to $7.00 and maintained a Buy rating, highlighting a 15% sales increase in Q3 and a gross margin of 39%. Telsey Advisory Group also increased its price target for The Honest Co. to $6.00, maintaining a Market Perform rating, in response to six consecutive quarters of adjusted EBITDA surpassing expectations.
These recent developments follow The Honest Co.’s record Q3 revenue of $99 million, a 15% increase year-over-year, and an expanded gross margin of 39%. The company’s CEO, Carla Vernon, and CFO, Dave Loretta, have revealed an optimistic full-year guidance, expecting revenue growth in the high single-digit percentage range and adjusted EBITDA between $20 million and $22 million.
However, the company also reported a non-recurring legal expense of $4.1 million, with an expected additional $4 million to $5 million in the upcoming quarter. Despite this, The Honest Co. projects an annual gross margin between 37% and 38%. As these recent developments unfold, the company remains focused on expanding product availability and maintaining financial gains for shareholders.
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The recent stock sale by Honest Company’s CEO Vernon Carla comes at a time when the company’s stock has shown remarkable…
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