Hims & Hers health COO sells over $800k in company stock By Investing.com

Melissa Baird, the Chief Operating Officer of Hims & Hers Health, Inc. (NYSE:HIMS), recently engaged in significant trading activity involving the company’s stock, according to the latest filings. On multiple occasions between August 5 and August 7, Baird sold a total of $846,808 worth of Class A Common Stock at prices ranging from $16.2171 to $17.7111.

The transactions included the sale of 6,433 shares at an average price of $16.8156 on August 5, with prices varying between $16.22 and $17.21. On the same day, Baird also sold 10,351 shares at an average price of $17.7111, with individual sales prices ranging from $17.26 to $18.045. On August 6, the COO sold 9,524 shares at an average of $16.7147, with a price range of $16.09 to $17.08, and an additional 7,260 shares at an average of $17.3715, with prices between $17.21 and $17.74. The final sale on August 7 involved 16,649 shares at an average price of $16.2171, with sales prices ranging from $15.89 to $16.57.

In addition to the sales, Baird also exercised options to acquire shares of Class A Common Stock at a price of $0.40 per share. On August 5 and 6, Baird exercised options for 16,784 shares on each day, and on August 7, Baird exercised options for 16,649 shares. The total value for these option exercises amounted to $20,086.

These transactions were conducted under a Rule 10b5-1 trading plan, which was adopted on November 21, 2023. Such plans allow company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, providing a defense against potential claims of insider trading.

Investors often monitor insider transactions as they can provide insights into an executive’s view of the company’s future performance. However, it’s important to note that there can be many personal or financial reasons behind an insider’s decision to sell stock, and such sales do not always indicate a lack of confidence in the company.

Hims & Hers Health, Inc. continues to be a notable player in the healthcare sector, providing telehealth services and wellness products. The company’s stock performance and insider trading activity remain areas of interest for investors tracking the healthcare industry.

In other recent news, Hims and Hers Health Inc. experienced significant growth in the second quarter, with a 52% year-over-year increase in revenue to $316 million and an adjusted EBITDA of $39 million. The company added nearly 155,000 new users, bringing its total subscriber count to 1.9 million. Hims and Hers Health’s weight management specialty achieved a $100 million annual revenue run rate within its first year, with the company projecting it as a key specialty in the future.

Jefferies recently adjusted the company’s price target to $18.00, maintaining a Hold rating on the company’s shares. The revision came after the company’s second-quarter results and initial comments from management regarding GLP-1s, a class of drugs. Despite this, Jefferies increased their revenue estimates for Hims and Hers Health, reflecting the company’s significant initial growth after entering a new product category.

On the other hand, Deutsche Bank raised its price target on Hims and Hers Health to $23.00, also maintaining a Hold rating. This adjustment followed the company’s Q2 earnings report, which highlighted a substantial focus on the near-term opportunities presented by GLP-1 injections. The company’s recent acquisition of an FDA-registered 503B facility is anticipated to facilitate faster product adoption and improve long-term margins.

For the future, Hims and Hers Health projected its 2024 revenue to be between $1.37 billion and $1.4 billion, with an adjusted EBITDA between $140 million and $155 million. The company also aims to have over 1 million personalized subscriptions by year-end. These recent developments underscore the company’s robust growth and focus on expanding its personalized healthcare offerings.

InvestingPro Insights

Amid the recent trading activity by Melissa Baird, COO of Hims & Hers Health, Inc. (NYSE:HIMS), the company’s financial health and market performance offer key insights. According to InvestingPro data, Hims & Hers boasts a robust market capitalization of $3.49 billion, underscoring its significant presence in the telehealth sector. The company’s revenue has shown impressive growth, with a 50.15% increase over the last twelve months as of Q2 2024, and an even higher quarterly growth rate of 51.82% for the same period. This indicates a strong upward trajectory in the company’s earnings capability.

InvestingPro Tips highlight that Hims & Hers is expected to see net income growth this year, with three analysts revising their earnings expectations upwards for the upcoming period. This suggests a positive outlook on the company’s profitability, which may be of interest to investors considering the recent insider trading activity. Furthermore, the company’s management has been actively buying back shares, a move that often reflects confidence in the company’s value and prospects.

However, the stock has experienced volatility, with a significant hit over the past week and underperformance over the last month. Despite this, Hims & Hers has delivered a high return over the past year, which could be indicative of its long-term potential. It’s worth noting that the company is trading at a high Price/Earnings (P/E) ratio of 190.71, and even after adjustments, the P/E ratio stands at 167.34 for the last twelve months as of Q2 2024. This high valuation metric suggests that the market has high expectations for the company’s future earnings.

For investors seeking more detailed analysis, there are additional InvestingPro Tips available on the platform, providing a comprehensive view of Hims & Hers Health, Inc.’s financials, stock performance, and market valuation.

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