Hims & Hers Health (NYSE:HIMS) Stock Price Down 5.8% - What's Next?

Key Points

• Hims & Hers shares fell 5.8% to about $29.90 in midday trading, with volume significantly below the stock’s average. The decline followed heightened investor caution around payment disputes and an analyst downgrade.
• Visa reportedly placed the company in its Acquirer Monitoring Program after an increase in credit-card billing disputes, while the FTC and state authorities are scrutinizing alleged data-sharing, billing and subscription-cancellation practices.
• The outlook remains mixed: Truist raised its price target to $32 on expectations for strong weight-loss revenue, but Hims & Hers recently missed quarterly EPS estimates despite 38.2% year-over-year revenue growth. Analysts maintain a consensus “Hold” rating with a $32.50 price target.

Hims & Hers Health, Inc. (NYSE:HIMS - Get Free Report) traded down 5.8% on Wednesday . The stock traded as low as $30.01 and last traded at $29.8960. Approximately 4,631,262 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 25,859,250 shares. The stock had previously closed at $31.75.

Hims & Hers Health News Roundup

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

• Positive Sentiment: Truist raised its price target for Hims & Hers from $27 to $32 while maintaining a “hold” rating. Separate coverage highlighted a bullish outlook for weight-loss revenue and suggested GLP-1 customers remain engaged, supporting the company’s growth prospects. Truist price target report Bullish weight-loss revenue forecast
• Neutral Sentiment: The National Advertising Division issued a mixed decision in a dispute involving Hims & Hers’ hair-treatment advertising. It found support for one combination-efficacy message but recommended modifying or discontinuing other claims, creating some compliance and marketing uncertainty. NAD advertising decision
• Negative Sentiment: Visa reportedly placed Hims & Hers in its Acquirer Monitoring Program following a rise in credit-card billing disputes. The move could add penalty costs and intensify concerns about subscription billing, cancellations and pressure on margins. Visa monitoring program report
• Negative Sentiment: The company faces scrutiny from the FTC and state authorities over alleged health-data sharing with advertisers, deceptive billing practices and difficult subscription cancellations. Multiple law firms have also announced investigations into possible securities-law violations and potential breaches of fiduciary duty by the board. These announcements do not establish wrongdoing but increase litigation, regulatory and reputational risk. FTC and state scrutiny Board investigation
• Negative Sentiment: An analyst downgrade contributed to a gap lower, adding to investor caution after reports of payment disputes. Analyst downgrade report

Analyst Ratings Changes

HIMS has been the topic of several recent analyst reports. Weiss Ratings reissued a "sell (d)" rating on shares of Hims & Hers Health in a report on Friday, August 7th. Morgan Stanley lifted their price target on Hims & Hers Health from $21.00 to $28.00 and gave the company an "equal weight" rating in a report on Tuesday, August 11th. BTIG Research reissued a "neutral" rating on shares of Hims & Hers Health in a research note on Tuesday, May 12th. Deutsche Bank Aktiengesellschaft increased 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, August 11th. Finally, Wall Street Zen upgraded Hims & Hers Health from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. 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 MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $32.50.

Hims & Hers Health Trading Down 6.0%

The company has a debt-to-equity ratio of 4.21, a current ratio of 0.93 and a quick ratio of 0.87. The firm has a market capitalization of $6.96 billion, a price-to-earnings ratio of -47.46 and a beta of 2.40. The business has a 50 day moving average of $32.39 and a 200 day moving average of $26.23.

Hims & Hers Health (NYSE:HIMS - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported ($0.37) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.32). Hims & Hers Health had a negative net margin of 5.51% and a negative return on equity of 6.51%. The firm had revenue of $753.21 million during the quarter, compared to the consensus estimate of $698.90 million. During the same quarter in the prior year, the company earned $0.17 EPS. Hims & Hers Health's quarterly revenue was up 38.2% on a year-over-year basis. As a group, research analysts predict that Hims & Hers Health, Inc. will post -0.14 earnings per share for the current fiscal year.

Insider Activity at Hims & Hers Health

In other news, insider Soleil Boughton sold 25,111 shares of the company's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $27.55, for a total transaction of $691,808.05. Following the completion of the sale, the insider directly owned 313,964 shares in the company, valued at approximately $8,649,708.20. This represents a 7.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Chi sold 14,027 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $31.50, for a total transaction of $441,850.50. Following the sale, the chief operating officer owned 432,124 shares in the company, valued at $13,611,906. This represents a 3.14% 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. In the last ninety days, insiders have sold 186,769 shares of company stock valued at $6,035,648. 11.76% of the stock is currently owned by insiders.

Institutional Trading of Hims & Hers Health

Hedge funds and other institutional investors have recently modified their holdings of the stock. Binnacle Investments Inc bought a new position in shares of Hims & Hers Health during the third quarter valued at $28,000. Versant Capital Management Inc boosted its position in Hims & Hers Health by 801.2% during the second quarter. Versant Capital Management Inc now owns 748 shares of the company's stock valued at $26,000 after acquiring an additional 665 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its holdings in Hims & Hers Health by 70.0% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 775 shares of the company's stock worth $27,000 after acquiring an additional 319 shares during the period. Silicon Valley Capital Partners acquired a new position in shares of Hims & Hers Health in the 3rd quarter valued at about $48,000. Finally, Bogart Wealth LLC boosted its position in shares of Hims & Hers Health by 235.8% during the 4th quarter. Bogart Wealth LLC now owns 900 shares of the company's stock valued at $29,000 after purchasing an additional 632 shares in the last quarter. Institutional investors own 63.52% of the company's stock.

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.

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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