Hims & Hers Health (NYSE:HIMS) Upgraded to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Hims & Hers Health from “Sell” to “Hold,” while the broader analyst consensus remains “Hold,” with an average price target of $32.43.
• The company delivered strong revenue growth, with quarterly sales up 38.2% year over year to $753.2 million and full-year revenue guidance raised to approximately $3.1 billion–$3.3 billion.
• Profitability remains a concern: Hims & Hers reported an adjusted loss of $0.37 per share versus expectations of a $0.05 loss, while gross margin declined to 64% amid the expansion of lower-margin branded GLP-1 offerings.

Hims & Hers Health (NYSE:HIMS - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Saturday.

HIMS has been the subject of a number of other research reports. Barclays lifted their price objective on shares of Hims & Hers Health from $29.00 to $39.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Morgan Stanley increased their target price on shares of Hims & Hers Health from $21.00 to $28.00 and gave the company an "equal weight" rating in a research report on Tuesday. Deutsche Bank Aktiengesellschaft raised their price target on shares of Hims & Hers Health from $25.00 to $26.00 and gave the stock a "hold" rating in a research note on Tuesday. Needham & Company LLC lifted their price target on shares of Hims & Hers Health from $35.00 to $42.00 and gave the stock a "buy" rating in a report on Tuesday. Finally, UBS Group set a $23.00 price objective on Hims & Hers Health in a research note on Friday, May 22nd. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $32.43.

Hims & Hers Health Stock Down 2.2%

Hims & Hers Health stock opened at $28.15 on Friday. The firm has a market capitalization of $6.57 billion, a price-to-earnings ratio of -44.68 and a beta of 2.40. The firm's fifty day moving average price is $32.11 and its two-hundred day moving average price is $26.09. Hims & Hers Health has a 1-year low of $13.74 and a 1-year high of $65.30. The company has a current ratio of 0.93, a quick ratio of 1.56 and a debt-to-equity ratio of 4.21.

Hims & Hers Health (NYSE:HIMS - Get Free Report) last announced 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 return on equity of 6.51% and a negative net margin of 5.51%.The company had revenue of $753.21 million for the quarter, compared to the consensus estimate of $698.90 million. During the same quarter last year, the company posted $0.17 EPS. The company's quarterly revenue was up 38.2% compared to the same quarter last year. On average, equities research analysts predict that Hims & Hers Health will post -0.05 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Oluyemi Okupe sold 7,163 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $36.49, for a total value of $261,377.87. Following the sale, the chief financial officer owned 284,321 shares in the company, valued at approximately $10,374,873.29. This trade represents a 2.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Irene Becklund sold 4,490 shares of the firm's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $31.50, for a total value of $141,435.00. Following the completion of the sale, the insider directly owned 6,790 shares in the company, valued at approximately $213,885. The trade was a 39.80% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 83,126 shares of company stock worth $2,711,339. Company insiders own 11.76% of the company's stock.

Hedge Funds Weigh In On Hims & Hers Health

A number of large investors have recently added to or reduced their stakes in the business. MassMutual Private Wealth & Trust FSB increased its stake in shares of Hims & Hers Health by 70.0% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 775 shares of the company's stock worth $27,000 after buying an additional 319 shares during the period. Sigma Planning Corp boosted its position in Hims & Hers Health by 1.5% during the 1st quarter. Sigma Planning Corp now owns 26,007 shares of the company's stock valued at $540,000 after buying an additional 388 shares during the period. Captrust Financial Advisors grew its holdings in Hims & Hers Health by 3.1% in the 2nd quarter. Captrust Financial Advisors now owns 14,612 shares of the company's stock worth $728,000 after acquiring an additional 443 shares during the last quarter. Binnacle Investments Inc bought a new stake in Hims & Hers Health in the 3rd quarter worth $28,000. Finally, Northwestern Mutual Investment Management Company LLC increased its position in shares of Hims & Hers Health by 1.1% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 46,607 shares of the company's stock valued at $1,513,000 after acquiring an additional 521 shares during the period. Hedge funds and other institutional investors own 63.52% of the company's stock.

Hims & Hers Health News Roundup

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

• Positive Sentiment: Management raised its full-year revenue outlook to approximately $3.1 billion–$3.3 billion, while second-quarter revenue increased 38% year over year to $753.2 million. The guidance suggests continued demand for Hims & Hers’ telehealth and weight-management offerings. Hims & Hers Raised Guidance
• Positive Sentiment: Bank of America and Needham analysts reportedly maintained constructive views on HIMS, supporting the bullish case that subscriber growth, expanding services, and the company’s longer-term healthcare platform can outweigh near-term volatility. Bank of America Analyst Forecast Needham Analyst Forecast
• Neutral Sentiment: Analyst opinion is divided: Citigroup issued a more pessimistic forecast, highlighting valuation and execution risks as Hims & Hers transitions its weight-loss business. Citigroup Forecast
• Negative Sentiment: The company’s gross margin fell six percentage points sequentially to 64% as branded GLP-1 drugs increased revenue but produced less favorable economics. The earnings report also included an adjusted loss of $0.37 per share, substantially below the $0.05 loss analysts expected, increasing concerns that growth is coming at the expense of profitability. Hims & Hers Margin Analysis
• Negative Sentiment: Several law firms, including Kaplan Fox, Kessler Topaz, Glancy Prongay Wolke, and Howard G. Smith, announced investigations into potential securities-law violations. These announcements are investor-solicitation notices rather than findings of wrongdoing, but they add headline, litigation, and reputational risk following the Federal Trade Commission’s lawsuit against the company. Kaplan Fox Investigation Kessler Topaz Investigation

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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