Avidity Partners Management LP Invests $1.56 Million in Hims & Hers Health, Inc. $HIMS

Key Points

• Avidity Partners Management LP purchased 75,000 shares of Hims & Hers Health worth approximately $1.56 million in the first quarter. Institutional investors collectively own 63.52% of the company.
• Analysts maintain a consensus “Hold” rating with a $31.43 target price, while Hims & Hers recently missed quarterly earnings and revenue expectations.
• The company faces significant near-term risk from an FTC lawsuit alleging improper sharing of customer health data and potentially deceptive billing practices, which could result in penalties and increased compliance costs.

Avidity Partners Management LP bought a new stake in Hims & Hers Health, Inc. (NYSE:HIMS - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 75,000 shares of the company's stock, valued at approximately $1,557,000.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Bank of America Corp DE lifted its position in shares of Hims & Hers Health by 194.4% in 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 in the last quarter. Norges Bank purchased a new stake in shares of Hims & Hers Health during the fourth quarter worth approximately $62,153,000. Invesco Ltd. raised its stake in Hims & Hers Health by 62.7% in the 3rd quarter. Invesco Ltd. now owns 4,152,409 shares of the company's stock valued at $235,525,000 after purchasing an additional 1,600,004 shares during the last quarter. Marex Group plc raised its stake in Hims & Hers Health by 162.2% in the 4th quarter. Marex Group plc now owns 2,419,518 shares of the company's stock valued at $78,562,000 after purchasing an additional 1,496,707 shares during the last quarter. Finally, Vanguard Group Inc. lifted its holdings in Hims & Hers Health by 7.2% in the 4th quarter. Vanguard Group Inc. now owns 20,925,666 shares of the company's stock valued at $679,456,000 after purchasing an additional 1,407,651 shares in the last quarter. Hedge funds and other institutional investors own 63.52% of the company's stock.

Insiders Place Their Bets

In other news, COO Michael Chi sold 14,027 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $31.50, for a total value of $441,850.50. Following the sale, the chief operating officer directly owned 432,124 shares of the company's stock, valued at approximately $13,611,906. The trade was a 3.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Oluyemi Okupe sold 7,163 shares of Hims & Hers Health stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $36.49, for a total transaction of $261,377.87. Following the completion of the transaction, the chief financial officer owned 284,321 shares of the company's stock, valued at $10,374,873.29. This trade represents a 2.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 83,126 shares of company stock worth $2,711,339. Insiders own 11.76% of the company's stock.

Wall Street Analysts Forecast Growth

HIMS has been the subject of a number of research reports. UBS Group set a $23.00 target price on shares of Hims & Hers Health in a report on Friday, May 22nd. Jefferies Financial Group set a $24.50 price objective on shares of Hims & Hers Health in a research note on Tuesday, May 12th. Truist Financial increased their price objective on shares of Hims & Hers Health from $23.00 to $27.00 and gave the company a "hold" rating in a report on Friday, July 24th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $25.00 target price on shares of Hims & Hers Health in a research note on Tuesday, May 5th. Finally, Wall Street Zen cut Hims & Hers Health from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Four equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Hims & Hers Health presently has a consensus rating of "Hold" and a consensus target price of $31.43.

Hims & Hers Health Trading Up 2.8%

Shares of Hims & Hers Health stock opened at $27.79 on Friday. The stock has a 50 day moving average of $31.23 and a 200 day moving average of $26.12. The company has a debt-to-equity ratio of 2.18, a quick ratio of 1.56 and a current ratio of 1.69. The firm has a market capitalization of $6.43 billion, a price-to-earnings ratio of -308.74, a PEG ratio of 76.10 and a beta of 2.35. Hims & Hers Health, Inc. has a fifty-two week low of $13.74 and a fifty-two week high of $70.43.

Hims & Hers Health (NYSE:HIMS - Get Free Report) last announced its quarterly earnings results on Monday, May 11th. The company reported ($0.40) EPS for the quarter, missing the consensus estimate of $0.04 by ($0.44). The business had revenue of $608.10 million during the quarter, compared to analyst estimates of $616.84 million. Hims & Hers Health had a negative net margin of 0.56% and a positive return on equity of 6.10%. The business's revenue for the quarter was up 3.8% on a year-over-year basis. During the same period last year, the company earned $0.20 EPS. As a group, research analysts predict that Hims & Hers Health, Inc. will post 0.03 earnings per share for the current year.

Hims & Hers Health News Roundup

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

• Positive Sentiment: One bullish analysis argues that Hims & Hers remains undervalued, citing projected revenue growth, approximately 73% gross margins, accelerating subscriber additions, GLP-1 and peptide demand, international expansion, and the Novo Nordisk partnership. The thesis suggests substantial long-term upside if the company sustains growth despite the regulatory controversy. Hims & Hers Health: Still an Undervalued Company With Tremendous Upside
• Neutral Sentiment: Several law firms, including SBS Law, Kaplan Fox, Howard G. Smith, and Holzer & Holzer, announced investigations into possible securities-law violations. These announcements are typically investor-solicitation notices and do not establish wrongdoing, but they raise the possibility of shareholder litigation and additional disclosure obligations. SBS Law Investigation
• Negative Sentiment: The FTC alleges Hims & Hers shared customers’ health information with advertising platforms including Meta and Snap, failed to clearly disclose prescription charges, and used potentially deceptive billing and privacy practices. The lawsuit could lead to penalties, higher compliance expenses, tighter restrictions on marketing, and damage to consumer trust. Media coverage of the action contributed to a sharp decline in the shares and remains the principal near-term risk for HIMS. FTC Sues Hims & Hers

Hims & Hers Health Company Profile

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.

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