Hims & Hers Health (NYSE:HIMS) Shares Gap Down Following Analyst Downgrade

Hims & Hers Health, Inc. (NYSE:HIMS)’s share price gapped down before the market opened on Monday after Bank of America lowered their price target on the stock from $26.00 to $21.00. The stock had previously closed at $23.02, but opened at $17.83. Bank of America currently has an underperform rating on the stock. Hims & Hers Health shares last traded at $17.2790, with a volume of 40,482,980 shares trading hands.

A number of other analysts have also recently commented on the company. Wall Street Zen cut Hims & Hers Health from a “hold” rating to a “sell” rating in a research report on Saturday, November 8th. BTIG Research dropped their target price on Hims & Hers Health from $85.00 to $60.00 and set a “buy” rating on the stock in a report on Monday, February 2nd. UBS Group set a $32.00 target price on shares of Hims & Hers Health in a research note on Tuesday, November 4th. Evercore assumed coverage on Hims & Hers Health in a report on Monday, January 12th. They issued an “in-line” rating and a $33.00 price target for the company. Finally, Citigroup reissued a “sell” rating on shares of Hims & Hers Health in a report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $41.77.

Insider Transactions at Hims & Hers Health

In related news, COO Michael Chi sold 13,750 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $36.71, for a total value of $504,762.50. Following the completion of the sale, the chief operating officer owned 305,161 shares in the company, valued at approximately $11,202,460.31. This represents a 4.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Oluyemi Okupe sold 23,187 shares of Hims & Hers Health stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $36.81, for a total value of $853,513.47. Following the transaction, the chief financial officer directly owned 70,232 shares in the company, valued at approximately $2,585,239.92. This trade represents a 24.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 129,337 shares of company stock worth $4,651,648 in the last quarter. 13.71% of the stock is currently owned by corporate insiders.

Key Stories Impacting Hims & Hers Health

Here are the key news stories impacting Hims & Hers Health this week:

• Positive Sentiment: Hims voluntarily halted sales of its compounded semaglutide pill, which may limit immediate regulatory enforcement risk and legal exposure compared with continuing sales. Read More.
• Positive Sentiment: The quick pullback could preserve capital and reduce near-term operational disruption while management addresses compliance and legal issues. Read More.
• Neutral Sentiment: Analysts and commentators are questioning how much GLP?1 related revenue Hims can reliably generate going forward; more skeptical research pieces suggest secular revenue uncertainty for the company’s obesity?drug strategy. Read More.
• Negative Sentiment: Novo Nordisk filed a patent?infringement lawsuit seeking to block Hims from selling compounded versions of its drugs and to recover damages — a direct legal threat that raises the risk of injunctive relief and large liabilities. Read More.
• Negative Sentiment: Market reaction: Hims shares moved sharply lower in premarket trading after the product pull and legal threats, reflecting investor concern about lost new?product revenue and regulatory/legal risk. Read More.
• Negative Sentiment: Bank of America cut its price target to $21 and moved to an “underperform” rating, signaling analyst conviction that downside remains and adding selling pressure. Read More.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in Hims & Hers Health by 7.2% in the fourth quarter. Vanguard Group Inc. now owns 20,925,666 shares of the company’s stock worth $679,456,000 after purchasing an additional 1,407,651 shares during the period. Capital World Investors raised its position in shares of Hims & Hers Health by 1.2% during the 3rd quarter. Capital World Investors now owns 18,783,194 shares of the company’s stock valued at $1,065,399,000 after acquiring an additional 223,892 shares during the last quarter. Farallon Capital Management LLC boosted its position in shares of Hims & Hers Health by 30.8% in the 3rd quarter. Farallon Capital Management LLC now owns 10,746,852 shares of the company’s stock worth $609,561,000 after purchasing an additional 2,533,271 shares during the last quarter. State Street Corp grew its stake in shares of Hims & Hers Health by 1.9% during the third quarter. State Street Corp now owns 7,173,214 shares of the company’s stock worth $406,865,000 after purchasing an additional 132,384 shares during the period. Finally, Geode Capital Management LLC lifted its stake in Hims & Hers Health by 1.5% in the second quarter. Geode Capital Management LLC now owns 4,746,081 shares of the company’s stock valued at $236,622,000 after buying an additional 71,593 shares during the period. Institutional investors and hedge funds own 63.52% of the company’s stock.

Hims & Hers Health Stock Performance

The company has a quick ratio of 1.64, a current ratio of 1.88 and a debt-to-equity ratio of 1.67. The stock has a market cap of $3.89 billion, a P/E ratio of 31.91, a PEG ratio of 3.79 and a beta of 2.43. The stock has a fifty day simple moving average of $32.96 and a 200-day simple moving average of $43.32.

Hims & Hers Health announced that its board has approved a share buyback plan on Monday, November 17th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to buy up to 3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

About Hims & Hers Health

Hims & Hers Health, Inc is a telehealth platform providing direct-to-consumer personal care products and virtual medical services in the United States. Operating under the Hims & Hers brand, the company offers an integrated digital experience that connects users with licensed healthcare providers, enabling online consultations and prescriptions for a range of conditions. Its telemedicine infrastructure supports both prescription medications and over-the-counter products, with home delivery to patients’ doorsteps.

The company’s product portfolio addresses key areas of men’s and women’s health, including hair loss treatments, sexual wellness therapies, skincare regimens and mental health support.