Hims & Hers Health (NYSE:HIMS) Shares Gap Down Following Weak Earnings

Key Points

• Hims & Hers Health shares fell sharply after the company reported weaker-than-expected quarterly results, opening at $25.21 versus the prior close of $29.14 and trading down about 10.5% intraday.
• The company posted a loss of $0.40 per share, well below analysts’ expected profit of $0.04 per share, while revenue of $608.1 million also missed consensus estimates of $616.84 million.
• Despite the weak quarter, analysts are mixed: Needham raised its price target to $35 and kept a buy rating, while Wall Street Zen downgraded the stock to sell and the broader consensus remains Hold.

Hims & Hers Health, Inc. (NYSE:HIMS - Get Free Report)'s stock price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $29.14, but opened at $25.21. Hims & Hers Health shares last traded at $26.5740, with a volume of 14,767,725 shares.

The company reported ($0.40) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.04 by ($0.44). Hims & Hers Health had a net margin of 5.47% and a return on equity of 22.48%. The company had revenue of $608.10 million during the quarter, compared to the consensus estimate of $616.84 million. During the same quarter in the previous year, the business posted $0.20 earnings per share. The business's quarterly revenue was up 3.8% compared to the same quarter last year.

Trending Headlines about Hims & Hers Health

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

• Positive Sentiment: Hims & Hers raised its 2026 revenue outlook to $2.8 billion-$3.0 billion and guided Q2 revenue above Wall Street expectations, signaling management still sees strong demand ahead. Hims & Hers Health Misses Q1 CY2026 Sales Expectations, Stock Drops 11.5%
• Positive Sentiment: Needham lifted its price target on HIMS to $35 from $30 and reiterated a buy rating, suggesting some analysts still see upside after the pullback. Needham raises price target on Hims & Hers Health
• Neutral Sentiment: BTIG reaffirmed a neutral rating, reflecting a more cautious view as investors digest the mixed quarter and the company’s transition in its weight-loss business. BTIG reaffirms neutral rating on Hims & Hers Health
• Negative Sentiment: Hims & Hers reported a Q1 loss of $0.40 per share versus a profit a year ago, while revenue of $608.1 million missed estimates, disappointing investors who had expected stronger execution. Hims & Hers Health Q1 earnings report
• Negative Sentiment: Several reports said higher costs and the GLP-1 transition weighed on results, with the company posting a $92.1 million quarterly loss and weaker-than-expected first-quarter guidance implications. Reuters report on Hims & Hers quarterly results

Analyst Upgrades and Downgrades

HIMS has been the subject of several research analyst reports. Wall Street Zen downgraded shares of Hims & Hers Health from a "hold" rating to a "sell" rating in a report on Saturday. Needham & Company LLC raised their price objective on shares of Hims & Hers Health from $30.00 to $35.00 and gave the company a "buy" rating in a research note on Tuesday. BTIG Research reissued a "neutral" rating on shares of Hims & Hers Health in a research note on Tuesday. Morgan Stanley decreased their target price on Hims & Hers Health from $40.00 to $21.00 and set an "equal weight" rating for the company in a research note on Tuesday, February 24th. Finally, Barclays upped their price target on shares of Hims & Hers Health from $25.00 to $29.00 and gave the company an "overweight" rating in a report on Wednesday, March 11th. Four research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $29.64.

Insider Activity

In other news, COO Michael Chi sold 97,289 shares of Hims & Hers Health stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $24.69, for a total value of $2,402,065.41. Following the transaction, the chief operating officer directly owned 407,282 shares of the company's stock, valued at $10,055,792.58. This trade represents a 19.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Soleil Boughton sold 9,463 shares of the business's stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $30.00, for a total transaction of $283,890.00. Following the sale, the insider owned 299,368 shares in the company, valued at $8,981,040. This represents a 3.06% 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 three months, insiders have sold 204,857 shares of company stock valued at $5,285,706. Corporate insiders own 13.71% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in Hims & Hers Health by 7.2% during the 4th quarter. Vanguard Group Inc. now owns 20,925,666 shares of the company's stock valued at $679,456,000 after acquiring an additional 1,407,651 shares in the last quarter. Capital World Investors boosted its stake 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 buying an additional 223,892 shares during the period. Farallon Capital Management LLC grew its holdings in shares of Hims & Hers Health by 30.8% during the 3rd quarter. Farallon Capital Management LLC now owns 10,746,852 shares of the company's stock valued at $609,561,000 after acquiring an additional 2,533,271 shares in the last quarter. State Street Corp increased its stake in shares of Hims & Hers Health by 1.8% in the fourth quarter. State Street Corp now owns 7,305,525 shares of the company's stock worth $237,210,000 after acquiring an additional 132,311 shares during the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of Hims & Hers Health by 12.4% in the fourth quarter. Geode Capital Management LLC now owns 5,509,764 shares of the company's stock worth $183,485,000 after acquiring an additional 608,950 shares during the last quarter. Hedge funds and other institutional investors own 63.52% of the company's stock.

Hims & Hers Health Trading Down 10.5%

The company has a debt-to-equity ratio of 1.80, a current ratio of 1.90 and a quick ratio of 1.70. The company has a fifty day moving average of $23.08 and a 200-day moving average of $29.44. The firm has a market capitalization of $5.95 billion, a PE ratio of 50.98, a price-to-earnings-growth ratio of 3.85 and a beta of 2.43.

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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