SAN FRANCISCO—Michael Chi, the Chief Commercial Officer of Hims & Hers Health, Inc. (NYSE:HIMS), recently sold shares in the company valued at approximately $165,000, according to a regulatory filing with the Securities and Exchange Commission.
The transaction, executed under a Rule 10b5-1 trading plan, involved the sale of 7,500 shares of Class A Common Stock at a price of $22.00 per share. This sale reduced Chi's direct ownership to 183,980 shares following the transaction.
In addition to the sale, Chi also exercised stock options to acquire 7,500 shares at a price of $13.90 each. These option exercises were also part of the trading plan adopted earlier this year on March 1, 2024. Following this exercise, Chi's total holdings include 59,082 shares of Class A Common Stock.
These transactions reflect Chi's strategic financial maneuvers within the framework of the pre-established trading plan, ensuring compliance with regulatory guidelines.
In other recent news, Hims & Hers Health, Inc. has been the focus of various analyst updates. BofA Securities downgraded the company's rating from Buy to Underperform, citing Amazon (NASDAQ:AMZN)'s entry into key markets as a potential challenge. However, Piper Sandler, Needham, and TD Cowen have shown confidence in the company's growth, raising their price targets to $21, $28, and $25 respectively, while maintaining neutral to positive ratings.
Hims & Hers has demonstrated robust financial performance, with third-quarter sales showing a 77% year-over-year increase, surpassing $400 million. The company's adjusted EBITDA also grew significantly, reaching over $50 million, indicating a healthy 13% margin. For the fourth quarter of 2024, the company is forecasting revenue between $465 million and $470 million, marking an 89% to 91% year-over-year increase.
The company has revealed plans to diversify its product offerings, including the launch of liraglutide, the first generic GLP-1, in 2025. This move is expected to bolster the company's market position and address concerns regarding future business performance. These are recent developments in the company's operations.
InvestingPro Insights
While Michael Chi's recent stock transactions provide insight into insider activity, a broader look at Hims & Hers Health's financial metrics offers a more comprehensive view of the company's performance. According to InvestingPro data, Hims & Hers Health has shown impressive revenue growth, with a 56.7% increase in the last twelve months as of Q3 2024, reaching $1.24 billion. This strong top-line performance is complemented by a robust gross profit margin of 81.13% for the same period.
The company's stock has also demonstrated significant momentum, with a 171.19% price total return over the past year. This aligns with an InvestingPro Tip indicating that the company has enjoyed a high return over the last year. Despite this strong performance, the stock is currently trading at 77.3% of its 52-week high, suggesting there may still be room for growth.
Interestingly, another InvestingPro Tip notes that management has been aggressively buying back shares, which could signal confidence in the company's future prospects. This insider activity, coupled with Chi's recent transactions, paints a picture of a dynamic and potentially optimistic outlook from those closest to the company's operations.
For investors seeking a deeper understanding of Hims & Hers Health, InvestingPro offers 17 additional tips that could provide valuable insights into the company's financial health and market position.
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