Hims & Hers Health, Inc. (NYSE:HIMS) Chief Commercial Officer Michael Chi has sold a total of $204,886 worth of company stock, according to a recent filing with the Securities and Exchange Commission. The transaction, carried out on July 12, involved the sale of 9,313 shares at a price of $22.00 each.
The filing also revealed that Chi exercised options to acquire 9,313 shares of Class A Common Stock, split between two transactions with prices of $6.82 and $11.53 per share, resulting in a total expenditure of $73,189. These transactions were executed under a pre-arranged trading plan established on March 1, 2024, known as a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule to buy or sell company stocks at a specified time.
The stock options exercised by Chi are part of a service-based vesting requirement, which will be satisfied over a four-year period. According to the footnotes in the SEC filing, a portion of the options began vesting on April 1, 2023, and September 10, 2022, with 1/48th of the options vesting monthly thereafter.
Following these transactions, Chi's ownership in the company stands at 185,326 shares of Class A Common Stock. The sale represents a significant transaction by a key executive of Hims & Hers Health, a company that operates in the healthcare sector providing services through offices and clinics of doctors of medicine.
Investors and market watchers often keep an eye on insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects.
In other recent news, Hims & Hers Health, Inc. has been the subject of several recent developments. The company's earnings and revenue prospects have been positively evaluated by multiple financial firms following the launch of its new GLP-1 treatment for weight loss. BofA Securities raised its price target for Hims & Hers twice, first to $22.00 and then to $26.00, based on the company's online revenue growth and the potential of its GLP-1 product.
Similarly, Canaccord Genuity increased its price target for Hims & Hers to $24.00, following the announcement of the new addition to its weight loss treatment options. TD Cowen also maintained a positive outlook on the company, raising its share price target from $15.00 to $25.00, reflecting the company's potential growth in the compounding pharmacy market.
However, Piper Sandler maintained a neutral stance, raising its price target to $18 from $16, expressing caution regarding the long-term outlook for Hims & Hers, particularly concerning the company's involvement with GLP-1 drugs. Citi also revised its stance on Hims & Hers, downgrading the company from Buy to Neutral, despite raising the price target to $20.00 due to potential regulatory risks associated with the GLP-1 launch. These recent developments provide a snapshot of the varying analyst perspectives on Hims & Hers' future growth and performance.
InvestingPro Insights
Hims & Hers Health, Inc. (NYSE:HIMS), a leading telehealth company, has shown notable market movements that could be of interest to investors monitoring insider transactions. As of the last twelve months leading up to Q1 2024, the company has reported a significant revenue growth of 55.65%, with the latest quarterly figure standing at a robust 45.81%. This growth trajectory is reflected in the company's gross profit margin, which impressively reaches 82.41%.
From an investment standpoint, the company's strong performance is further underscored by a remarkable 1-year price total return of 160.84%, signaling robust investor confidence. Additionally, with a market capitalization of 4.96 billion USD, Hims & Hers Health has demonstrated its ability to maintain a solid financial presence in the healthcare sector. It's also worth noting that the company's stock is currently trading at 89.78% of its 52-week high, with a previous close at 22.84 USD, indicating a relatively high valuation by the market.
Insightful InvestingPro Tips suggest that Hims & Hers Health is expected to see net income growth this year, with 3 analysts having revised their earnings upwards for the upcoming period. Moreover, the company is trading at a high EBITDA valuation multiple, which could be indicative of the market’s expectation of continued growth or potential overvaluation. For investors looking to delve deeper into the financial health and future prospects of Hims & Hers Health, there are additional InvestingPro Tips available, which can be accessed with a subscription. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
These insights, combined with the recent insider transactions by Chief Commercial Officer Michael Chi, may provide a broader understanding of the company's financial health and strategic direction. As always, investors should consider these data points within the context of their own investment strategy and objectives.
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