Honest Company Inc. (NASDAQ: HNST) Chief Executive Officer Carla Vernon sold 117,893 shares of common stock on August 20, 2026, for $588,286, according to regulatory filings.
The sale was executed under a sell-to-cover plan approved by the company’s Compensation Committee to meet tax obligations tied to the vesting of previously granted Restricted Stock Units. The transaction was priced at $4.99 per share, below the stock’s recent trading levels near $5.20.
The same day, Vernon received 362,068 new Restricted Stock Units at no cost, with half scheduled to vest on February 19, 2028, and the remainder on August 19, 2029, contingent on continuous service as CEO. She also received 362,068 Performance Stock Units, which may vest between 0% and 200% based on service and stock price conditions over a four-year period ending February 2031.
The Performance Stock Units include hurdles tied to the average closing price over 30 consecutive trading days—$6.50, $8.00, $9.50, and $11.00—with no vesting if the average remains below $6.50. Service-based vesting occurs in 25% increments annually from August 20, 2027, through August 20, 2030.
Honest Company’s stock has surged 130% over the past six months and more than 101% year-to-date, with a beta of 2.17 reflecting above-average volatility. Vernon’s beneficial ownership totals 4,190,626 shares, including 2,723,736 RSUs payable in common stock.
The company reported second-quarter revenue of $83.3 million and raised its full-year 2026 revenue guidance to between $319 million and $325 million. Adjusted EBITDA is now forecast at $23 million to $25 million, while analysts expect the company to achieve profitability this year with earnings per share of $0.12, compared with a loss of $0.11 in the prior 12 months.
Revenue remains concentrated in wipes and personal care products, which account for over 70% of total sales, while the baby portfolio contributes less than 30%.
Analysts have responded with upward revisions. Freedom Broker upgraded Honest Company to Buy from Hold and set a price target of $5.00, up from $4.00. Morgan Stanley maintained an Equalweight rating but raised its target to $5.70 from $3.40.
