Hims & Hers Health (NYSE:HIMS) Shares Gap Down After Earnings Miss

Key Points

• Hims & Hers Health shares gapped down from a close of $63.35 to an opening price of $55.30 following a quarterly earnings report that missed analysts' expectations.
• The company reported earnings of $0.17 per share, below the $0.18 consensus, with quarterly revenue of $544.83 million compared to the estimated $550.06 million.
• A number of analysts adjusted their price targets for Hims & Hers Health, with Bank of America raising it to $26.00 while TD Cowen downgraded their rating from "buy" to "hold" and cut the target from $44.00 to $30.00.

Hims & Hers Health, Inc. (NYSE:HIMS - Get Free Report) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $63.35, but opened at $55.30. Hims & Hers Health shares last traded at $61.86, with a volume of 6,308,646 shares.

The company reported $0.17 EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.01). The firm had revenue of $544.83 million during the quarter, compared to the consensus estimate of $550.06 million. Hims & Hers Health had a net margin of 9.24% and a return on equity of 22.75%. The business's quarterly revenue was up 72.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.06 earnings per share.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Bank of America lifted their price target on Hims & Hers Health from $22.00 to $26.00 and gave the company an "underperform" rating in a research note on Tuesday, April 29th. TD Cowen downgraded Hims & Hers Health from a "buy" rating to a "hold" rating and cut their target price for the stock from $44.00 to $30.00 in a research note on Tuesday, April 29th. Piper Sandler restated a "neutral" rating and issued a $39.00 target price (up previously from $35.00) on shares of Hims & Hers Health in a research note on Tuesday, May 6th. Truist Financial boosted their target price on Hims & Hers Health from $45.00 to $48.00 and gave the stock a "hold" rating in a research note on Thursday, July 17th. Finally, Citigroup restated a "sell" rating on shares of Hims & Hers Health in a research note on Monday, June 23rd. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $39.83.

Insider Activity at Hims & Hers Health

In other Hims & Hers Health news, CFO Oluyemi Okupe sold 11,581 shares of the business's stock in a transaction on Monday, July 14th. The shares were sold at an average price of $47.70, for a total transaction of $552,413.70. Following the sale, the chief financial officer owned 54,084 shares of the company's stock, valued at $2,579,806.80. The trade was a 17.64% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Michael Chi sold 2,100 shares of the business's stock in a transaction on Thursday, July 24th. The shares were sold at an average price of $57.52, for a total transaction of $120,792.00. Following the sale, the insider directly owned 278,654 shares in the company, valued at $16,028,178.08. The trade was a 0.75% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 737,704 shares of company stock worth $40,644,035. Company insiders own 17.71% of the company's stock.

Institutional Investors Weigh In On Hims & Hers Health

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Farallon Capital Management LLC raised its holdings in Hims & Hers Health by 64,338.5% during the 4th quarter. Farallon Capital Management LLC now owns 8,377,000 shares of the company's stock valued at $202,556,000 after acquiring an additional 8,364,000 shares during the period. Renaissance Technologies LLC raised its holdings in Hims & Hers Health by 29.0% during the 4th quarter. Renaissance Technologies LLC now owns 6,951,152 shares of the company's stock valued at $168,079,000 after acquiring an additional 1,562,302 shares during the period. Geode Capital Management LLC raised its holdings in Hims & Hers Health by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 4,329,996 shares of the company's stock valued at $104,724,000 after acquiring an additional 40,447 shares during the period. Northern Trust Corp increased its holdings in shares of Hims & Hers Health by 19.5% in the first quarter. Northern Trust Corp now owns 2,435,512 shares of the company's stock worth $71,969,000 after purchasing an additional 397,310 shares during the period. Finally, Yong Rong HK Asset Management Ltd increased its holdings in shares of Hims & Hers Health by 41.2% in the first quarter. Yong Rong HK Asset Management Ltd now owns 2,400,000 shares of the company's stock worth $70,920,000 after purchasing an additional 700,100 shares during the period. Institutional investors own 63.52% of the company's stock.

Hims & Hers Health Price Performance

The stock has a market cap of $14.23 billion, a P/E ratio of 92.13, a PEG ratio of 2.31 and a beta of 2.08. The firm's fifty day moving average price is $53.79 and its two-hundred day moving average price is $44.51.

About Hims & Hers Health

Hims & Hers Health, Inc operates a telehealth consultation platform. It connects consumers to healthcare professionals, enabling them to access medical care for mental health, sexual health, dermatology and primary care. The company was founded in 2017 and is headquartered in San Francisco, CA.

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