Brendan Sheehey, general counsel at Honest Company Inc., sold 9,664 shares of common stock on August 20, 2026, at $4.99 per share for a total of $48,223. The transaction was executed under an approved sell-to-cover plan to meet tax liabilities tied to the vesting of previously granted restricted stock units.
Following the sale, Sheehey retains direct holdings of 812,023 shares, including 436,214 RSUs payable in common stock. On the same date, the company granted Sheehey 105,799 RSUs at no cost, with a three-year vesting schedule. Fifty percent of the units will vest on February 19, 2028, and the remainder on August 19, 2029, subject to continuous employment.
Honest Company’s stock price rose to $5.20 on Thursday, up 125% over the past six months and 101% year-to-date. The company reported second-quarter revenue of $83.3 million, record margins, and raised its full-year revenue guidance to a range of $319 million to $325 million. Adjusted EBITDA is forecast between $23 million and $25 million for 2026.
Analysts have adjusted price targets following the results. Freedom Broker upgraded Honest’s rating to Buy from Hold with a $5.00 target, while Morgan Stanley raised its target to $5.70 from $3.40, citing cash flow strength despite softer diaper demand. Diapers now account for less than 30% of revenue, with wipes and personal care contributing over 70%.
