Morgan Stanley Has Lowered Expectations for Hims & Hers Health (NYSE:HIMS) Stock Price

Key Points

• Morgan Stanley cut its Hims & Hers Health price target from $28 to $25 and maintained an “equal weight” rating; the new target implies about 34% upside from the cited share price of $18.67.
• Analyst sentiment overall remained “Hold,” with an average price target of $31.57; the article reports three Buy ratings, eleven Hold ratings and one Sell rating.
• Shares fell $4.27 on Tuesday. The article also cites pressure on profitability and outlook, including a quarterly EPS miss and a later reduction in the company’s adjusted EBITDA forecast.

Hims & Hers Health (NYSE:HIMS - Get Free Report) had its target price reduced by equities researchers at Morgan Stanley from $28.00 to $25.00 in a report issued on Tuesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's target price indicates a potential upside of 33.91% from the stock's current price.

A number of other research analysts have also recently commented on HIMS. Zacks Research upgraded shares of Hims & Hers Health from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Wall Street Zen upgraded Hims & Hers Health from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Bank of America increased their target price on Hims & Hers Health from $30.00 to $32.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. began coverage on Hims & Hers Health in a research report on Friday, September 11th. They set a "neutral" rating and a $32.00 target price for the company. Finally, Citigroup decreased their price target on Hims & Hers Health from $35.00 to $33.00 and set a "neutral" rating on the stock in a research note on Tuesday, August 11th. Three research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Hims & Hers Health currently has an average rating of "Hold" and an average target price of $31.57.

Hims & Hers Health Stock Performance

Shares of HIMS stock traded down $4.27 during trading hours on Tuesday, reaching $18.67. 35,438,288 shares of the company's stock were exchanged, compared to its average volume of 22,292,668. Hims & Hers Health has a fifty-two week low of $13.74 and a fifty-two week high of $41.28. The stock has a market capitalization of $4.36 billion, a P/E ratio of -29.87 and a beta of 2.53. The business has a fifty day moving average price of $28.31 and a 200-day moving average price of $26.91. The company has a quick ratio of 0.87, a current ratio of 0.93 and a debt-to-equity ratio of 4.21.

Hims & Hers Health (NYSE:HIMS - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.37) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.32). Hims & Hers Health had a negative net margin of 5.51% and a negative return on equity of 6.51%. The firm had revenue of $753.21 million for the quarter, compared to the consensus estimate of $698.90 million. The company's revenue was up 38.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.17 earnings per share. Analysts predict that Hims & Hers Health will post -0.16 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Deborah Autor sold 16,773 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $27.85, for a total value of $467,128.05. Following the sale, the insider directly owned 48,961 shares of the company's stock, valued at approximately $1,363,563.85. The trade was a 25.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Chi sold 14,027 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $28.39, for a total transaction of $398,226.53. Following the transaction, the chief operating officer directly owned 456,660 shares of the company's stock, valued at $12,964,577.40. This represents a 2.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 133,905 shares of company stock valued at $3,826,977. Insiders own 11.76% of the company's stock.

Hedge Funds Weigh In On Hims & Hers Health

Several institutional investors and hedge funds have recently made changes to their positions in HIMS. Bank of America Corp DE raised its stake in shares of Hims & Hers Health by 194.4% during the first quarter. Bank of America Corp DE now owns 4,357,672 shares of the company's stock valued at $90,465,000 after acquiring an additional 2,877,550 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Hims & Hers Health in the second quarter worth $46,220,000. Bienville Capital Management LLC acquired a new stake in Hims & Hers Health in the second quarter valued at $27,242,000. Principal Financial Group Inc. increased its holdings in Hims & Hers Health by 97.3% in the first quarter. Principal Financial Group Inc. now owns 1,282,266 shares of the company's stock valued at $26,620,000 after purchasing an additional 632,282 shares during the period. Finally, Southpoint Capital Advisors LP acquired a new stake in Hims & Hers Health in the first quarter valued at $10,380,000. Institutional investors and hedge funds own 63.52% of the company's stock.

Key Stories Impacting Hims & Hers Health

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

• Positive Sentiment: Q3 revenue rose about 49% year over year to $890.4 million, showing strong business growth. International revenue increased 321%, though the recently acquired Eucalyptus business contributed significantly to that total. Article: Hims & Hers: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Needham kept a Buy rating but cut its price target from $42 to $32, reflecting a more cautious valuation outlook despite its continued endorsement. Article: Needham price target update
• Neutral Sentiment: Neuroscientist and health-media personality Andrew Huberman joined the company’s board, adding a prominent health and science voice, though the appointment’s financial impact is uncertain. Article: Andrew Huberman Joins Hims & Hers Board of Directors
• Negative Sentiment: Q3 adjusted earnings per share of $0.03 missed analyst estimates of roughly $0.06–$0.07, while revenue also came in slightly below consensus. Article: Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Management forecast Q4 revenue of $875 million–$895 million, well below the $955.9 million consensus, and FY 2026 revenue of $3.1 billion–$3.2 billion, below the $3.2 billion estimate’s midpoint. The company also cut its FY adjusted EBITDA outlook for the third time this year, to $257 million–$277 million from $300 million–$375 million. Article: Hims & Hers narrows 2026 revenue forecast as margins contract
• Negative Sentiment: Gross margin fell to 57.2% from 73.8%, and subscribers declined by 100,000 sequentially to 2.8 million. Those trends, alongside a reported $33 million loss, raise questions about the cost of growth and the durability of customer acquisition. Article: Hims & Hers: Why I'm Not Buying Back Yet

Hims & Hers Health Company Profile

Hims & Hers Health, Inc operates a consumer-focused telehealth platform that connects patients with licensed healthcare providers and offers access to treatments and wellness products. Its services include online consultations, prescription care and over-the-counter products.

The company serves a range of health needs, including hair loss, sexual health, skin care, mental health and weight management. Its platform also offers primary care and other services, with offerings varying by location and individual eligibility.

Founded in 2017, the company initially launched its Hims brand and later introduced Hers, expanding its services to a broader audience.

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