Honest

Resistance

<ul class="list-ic vertical">
 <li><span>1</span> <a>Honest Company Inc. (NASDAQ: HNST) share price surged more than 23% after the release of the quarterly report.</a></li>
 <li><span>2</span> <a>The company’s digital revenue grew by 19% in this quarter</a></li>
 <li><span>3</span> <a>The current share price has made a gap-up opening, see what is next for HNST.</a></li>
</ul>
<p>The financial results for the three and nine months ended September 30, 2023, of Honest Company Inc. (NASDAQ: HNST) indicate a 2% increase in revenue to $86 Million. This was primarily driven by strong retail consumption, growth in the digital channel, baby clothing performance, and price hikes. However, the company had to abandon low-margin items in the club channel.&nbsp;</p>
<h2 class="wp-block-heading" id="strong-the-3-pillars-of-focus-from-the-management-strong"><strong>The 3 Pillars of Focus From the Management</strong></h2>
<p>According to Carla Vernón, CEO of Honest Company Inc., the transformation Initiative that they launched at the beginning of the year is still supporting their strong performance. The initiative revolves around three pillars which include Brand maximization, margin enhancement, and operating discipline, which were noticeable in their Q3 results. The company’s revenue hit an all-time high in the third quarter, and it achieved its highest gross margin in the last two years.&nbsp;</p>
<p>This leads to another quarter of positive operating cash flow. The results demonstrate the power of the Honest brand and its commitment to enhancing shareholder value. Moreover, the digital revenue grew by 19%, supported by double-digit growth at their key digital customer. However, the adjusted EBITDA for Q3 2023 was negative $1 Million.&nbsp;</p>
<h3 class="wp-block-heading" id="strong-initiatives-for-shareholder-s-wealth-strong"><strong>Initiatives for Shareholder’s Wealth</strong></h3>
<p>The company’s pricing and cost savings initiatives, as well as disciplined portfolio management, are providing them with positive momentum as they approach the end of the fiscal year. The company is eager to share its long-term strategy update with its stakeholders in the coming Spring.&nbsp;</p>
<h2 class="wp-block-heading" id="strong-technical-analysis-and-prediction-of-hnst-stock-price-strong"><strong>Technical Analysis and Prediction of HNST Stock Price</strong></h2>
<div class="wp-block-image">
 <figure class="aligncenter is-resized"><img decoding="async" src="https://lh7-us.googleusercontent.com/1aKnIaK9LsFdqePFxRS1Fpi9gSkCzJIVqRIF-1lL8zQVUXVrrkISl0vw59Hp0iu0mEr7u6DzF1IHlSJoGVFld_Ba8lPbBpJt5cc8tyv2PggXqIS2t1heqterEVk9_ZkJAxpnaTmCmOeI6IURVyHSyA0" alt="HNST Stock:&nbsp; Bulls Surged 23%, Earning Report on Driver’s Seat" style="width: 100%;height:auto">
  <figcaption class="wp-element-caption"><a href="https://in.tradingview.com/chart/X78t0Vyp/?symbol=NASDAQ%3AHNST" rel="noopener noreferrer nofollow">NASDAQ: HNST stock chart by Tradingview (Daily time frame)</a>
  </figcaption>
 </figure>
</div>
<p>At the press time, the HNST <a href="https://www.thecoinrepublic.com/2023/10/15/backed-by-strong-financials-cey-stock-price-rose-11-6-in-5-days/" rel="noopener noreferrer nofollow">stock price</a> has broken above the current downtrend. The bears are still to be seen after a released of positive earnings report. The support level of $1.09 has been regained by bullish investors, and the next immediate resistance is at $1.93. The 50-day EMA and the 150-day EMA are located at $1.28 and $1.61, respectively.&nbsp;</p>
<p>As of now, the HNST stock price prediction seems bearish until it hits its immediate support. Once the support level is reached, the bears might take over, since the trend will be broken. If the HNST stock price breaks the immediate support, its next support level would be $0.7.</p>
<h3 class="wp-block-heading" id="strong-conclusion-strong"><strong>Conclusion</strong></h3>
<p>Honest Company Inc. (NASDAQ: HNST) reported its earnings report for the 3rd Quarter of 2024. The major focus of the company in this quarter has been on brand maximization, margin enhancement, and operating discipline. The HNST stock price surged after this release.</p>
<h4 class="wp-block-heading"><strong>Technical Levels</strong></h4>
<p>Support Levels: $1.09 and&nbsp; $0.7</p>
<p>Resistance Levels: $1.93 and $2.45</p>
<h5 class="wp-block-heading"><strong>Disclaimer</strong></h5>
<p>The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets or stocks comes with a risk of financial loss.</p>

HNST Stock: Bulls Surged 23%, Earning Report on Driver’s Seat

Table of Contents

Thecoinrepublic.com

Other articles published on Nov 11, 2023

Whitepaper

Why Altcoin Season Is Just Around the Corner

This is when XRP might breakout amid lingering SEC uncertainty

Tokenomics

This Largest AI Crypto Adds 13% in 24 Hours

Ripple vs. the SEC case updates could leave XRP in a vulnerable position

Join our free newsletter for daily crypto updates!