Michael Chi, Chief Commercial Officer of Hims & Hers Health, Inc. (NYSE:HIMS), reported selling 17,303 shares of the company's Class A Common Stock on November 25, 2024. The shares were sold at an average price of $26.49, amounting to a total transaction value of approximately $458,356.
Prior to the sale, Chi exercised stock options to acquire the same number of shares at a price of $5.01 per share, totaling $86,688. Following these transactions, Chi holds 184,947 shares directly, which includes an additional 967 shares acquired under the company's 2020 Employee Stock Purchase Plan.
The transactions were conducted under a Rule 10b5-1 trading plan adopted on March 1, 2024.
In other recent news, Hims & Hers Health, Inc. is experiencing notable developments. The company's third-quarter sales showed a significant 77% year-over-year increase, surpassing $400 million, with an adjusted EBITDA over $50 million. Projected Q4 2024 revenue is between $465 million and $470 million, marking an 89% to 91% year-over-year increase, and full-year revenue is expected to be between $1.46 billion and $1.465 billion, reflecting a 67% to 68% increase.
Hims & Hers Health also announced the expansion of its board of directors and the appointment of a new independent director, Deb Autor. On the analyst front, TD Cowen reaffirmed its Buy rating on Hims & Hers, while BofA Securities maintained its Underperform rating. Piper Sandler and Needham raised their price targets for the company.
The company is in the spotlight due to President-elect Donald Trump's nomination of Dr. Martin Makary for the Food and Drug Administration (FDA) commissioner. Analysts consider this potentially favorable for Hims & Hers and the broader market of compounded GLP-1 drugs. Lastly, BofA Securities downgraded Hims & Hers from Buy to Underperform due to Amazon (NASDAQ:AMZN)'s entry into key markets, potentially affecting pricing and customer acquisition.
InvestingPro Insights
The recent insider sale by Michael Chi comes at a time when Hims & Hers Health (NYSE:HIMS) is experiencing significant market momentum. According to InvestingPro data, the company's stock has shown remarkable performance, with a 273.24% price total return over the past year and a 91.15% return in the last three months alone. This strong performance aligns with the company's robust financial growth, as evidenced by a 56.7% revenue growth in the last twelve months.
InvestingPro Tips highlight that Hims & Hers is trading near its 52-week high, with the current price at 96.84% of its peak. This could explain the timing of Chi's stock option exercise and subsequent sale, potentially capitalizing on the stock's strong performance. Additionally, the company's net income is expected to grow this year, which may further support investor confidence.
Despite the high valuation multiples, with a P/E ratio of 65.89, the company's PEG ratio of 0.19 suggests that the stock may still be undervalued relative to its growth prospects. This could indicate why insiders like Chi might retain a significant portion of their holdings even after selling some shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for Hims & Hers Health, providing deeper insights into the company's financial health and market position.
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