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

Key Points

• Hims & Hers shares fell sharply after Barclays cut its price target from $39 to $35, though it maintained an overweight rating. The stock opened at $32.44 versus a prior close of $33.78 and later traded near $30.87.
• Analyst sentiment remains mixed but leans toward caution: four analysts rate the stock a Buy, eleven a Hold, and one a Sell, producing an average rating of Hold and an average price target of $32.17.
• The company reported strong revenue growth of 38.2% year over year to $753.21 million, exceeding estimates, but missed substantially on earnings with quarterly EPS of negative $0.37 versus expectations of negative $0.05.

Hims & Hers Health, Inc. (NYSE:HIMS - Get Free Report)'s stock price gapped down before the market opened on Monday after Barclays lowered their price target on the stock from $39.00 to $35.00. The stock had previously closed at $33.78, but opened at $32.44. Barclays currently has an overweight rating on the stock. Hims & Hers Health shares last traded at $30.8680, with a volume of 2,716,030 shares traded.

Several other research firms also recently commented on HIMS. Wall Street Zen raised shares of Hims & Hers Health from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Jefferies Financial Group set a $24.50 price objective on shares of Hims & Hers Health in a research report on Tuesday, May 12th. UBS Group set a $23.00 target price on shares of Hims & Hers Health in a research note on Friday, May 22nd. Citigroup dropped their target price on shares of 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. Finally, TD Cowen raised their target price on shares of Hims & Hers Health from $25.00 to $30.00 and gave the stock a "hold" rating in a research report on Tuesday, August 11th. Four research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Hims & Hers Health currently has an average rating of "Hold" and an average target price of $32.17.

Insider Buying and Selling at Hims & Hers Health

In related news, CFO Oluyemi Okupe sold 55,383 shares of Hims & Hers Health stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $35.09, for a total value of $1,943,389.47. Following the completion of the sale, the chief financial officer directly owned 228,938 shares in the company, valued at $8,033,434.42. The trade was a 19.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 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, insider Deborah M. Autor sold 16,773 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $27.85, for a total transaction of $467,128.05. Following the completion of the sale, the insider directly owned 48,961 shares of the company's stock, valued at approximately $1,363,563.85. This trade represents a 25.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 186,769 shares of company stock worth $6,035,648. Insiders own 11.76% of the company's stock.

Institutional Investors Weigh In On Hims & Hers Health

Several large investors have recently modified their holdings of the business. MassMutual Private Wealth & Trust FSB lifted its holdings in Hims & Hers Health by 70.0% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 775 shares of the company's stock valued at $27,000 after purchasing an additional 319 shares in the last quarter. Sigma Planning Corp increased its stake in shares of Hims & Hers Health by 1.5% during the first quarter. Sigma Planning Corp now owns 26,007 shares of the company's stock worth $540,000 after purchasing an additional 388 shares in the last quarter. Captrust Financial Advisors raised its position in shares of Hims & Hers Health by 3.1% during the 2nd quarter. Captrust Financial Advisors now owns 14,612 shares of the company's stock worth $728,000 after purchasing an additional 443 shares during the last quarter. Binnacle Investments Inc acquired a new position in shares of Hims & Hers Health during the 3rd quarter worth about $28,000. Finally, Northwestern Mutual Investment Management Company LLC lifted its stake in Hims & Hers Health by 1.1% in the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 46,607 shares of the company's stock valued at $1,513,000 after buying an additional 521 shares in the last quarter. Institutional investors own 63.52% of the company's stock.

Hims & Hers Health Price Performance

The company has a debt-to-equity ratio of 4.21, a quick ratio of 0.87 and a current ratio of 0.93. The stock has a market capitalization of $7.25 billion, a PE ratio of -49.23 and a beta of 2.40. The stock's 50 day moving average is $32.37 and its two-hundred day moving average is $26.14.

Hims & Hers Health (NYSE:HIMS - Get Free Report) last announced its earnings results on Monday, August 10th. The company reported ($0.37) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.32). The firm had revenue of $753.21 million for the quarter, compared to analyst estimates of $698.90 million. Hims & Hers Health had a negative net margin of 5.51% and a negative return on equity of 6.51%. Hims & Hers Health's revenue was up 38.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.17 EPS. On average, equities analysts anticipate that Hims & Hers Health, Inc. will post -0.14 EPS for the current fiscal year.

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.

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