The Honest Company (HNST) Fell Due to Cautious Guidance

38 minutes ago 1

Soumya Eswaran

Mon, December 1, 2025 astatine 7:30 AM CST 3 min read

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equities deed a grounds precocious successful the 3rd quarter, fueled by continued gains successful exertion and falling enslaved yields. Easing tariff rhetoric and renewed AI infrastructure investments boosted ample tech stocks. In mid-September U.S. Federal Reserve lowered rates by 25 ground points. In this environment, the money returned 6.72% (net) during the quarter, underperforming the 9.00% returns of the Russell 2500 Index and 8.18% returns of the secondary benchmark, the Russell 2500 Value Index. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Meridian Contrarian Fund highlighted stocks specified arsenic The Honest Company, Inc. (NASDAQ:HNST). Headquartered successful Los Angeles, California, The Honest Company, Inc. (NASDAQ:HNST) manufactures and sells diapers and wipes, tegument and idiosyncratic care, and household and wellness products. The one-month instrumentality of The Honest Company, Inc. (NASDAQ:HNST) was -19.94%, and its shares mislaid 67.71% of their worth implicit the past 52 weeks. On November 28, 2025, The Honest Company, Inc. (NASDAQ:HNST) banal closed astatine $2.69 per share, with a marketplace capitalization of $300.717 million.

Meridian Contrarian Fund stated the pursuing regarding The Honest Company, Inc. (NASDAQ:HNST) successful its 3rd 4th 2025 capitalist letter:

"The Honest Company, Inc. (NASDAQ:HNST) is simply a user products institution specializing successful earthy baby-care consumables, beauty, and different household supplies. We initially invested successful Honest arsenic a contrarian concern accidental pursuing station pandemic proviso concatenation disruptions, seeing worth successful the brand’s authenticity and successful its past of maturation contempt operational challenges. Despite reporting quarterly results supra expectations, the banal declined arsenic the institution took a cautious attack to guidance for the remainder of the year. We proceed to clasp our presumption arsenic we expect that Honest’s beardown absorption squad and unsocial merchandise offering volition spot increasing user organisation and maturation good into 2026 and beyond."

Jim Can’t Recommend The Honest Company, Inc. (HNST) Yet – Here’s Why

The Honest Company, Inc. (NASDAQ:HNST) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge money portfolios held The Honest Company, Inc. (NASDAQ:HNST) astatine the extremity of the 3rd quarter, the aforesaid arsenic successful the erstwhile quarter. The Honest Company, Inc. (NASDAQ:HNST) reported gross of $93 million, down 7% year-over-year. While we admit the imaginable of The Honest Company, Inc. (NASDAQ:HNST) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.