Hims & Hers Health CEO Sells More Than $747,000 in Company Shares by Investing.com

Andrew Dudum, CEO of Hims & Hers Health, Inc. (NYSE:HIMS), sold a total of $747,433 worth of company stock, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on September 20, 2024, involved sales of shares at prices ranging from $16.2922 to $16.7798.

Specifically, Dudum unloaded 42,099 shares at an average price of $16.2922 and another 3,668 shares at an average price of $16.7798. The sales were made pursuant to a prearranged Rule 10b5-1 trading plan, which allows company insiders to sell stock at predetermined times to avoid insider trading charges.

Following these transactions, the CEO continues to own a significant number of shares in Hims & Hers Health, directly and indirectly through trusts. Direct holdings that were affected by the recent sell-off now stand at 67,015 shares.

Investors often watch insider sales because they can provide insight into an executive’s perspective on the company’s current valuation and future prospects. However, it is not uncommon for executives to sell shares for personal financial management reasons, including diversification and liquidity.

Hims & Hers Health, Inc. continues to be an outstanding player in the healthcare industry, providing affordable and convenient digital healthcare services. The company’s stock performance and insider trading are of particular interest to investors who follow the growth of the healthcare sector and the movements of its executives.

In other recent news, Hims & Hers Health, a health and wellness platform, has announced some significant developments. The company reported 52% year-over-year revenue growth in Q2 2024 to $316 million, along with adjusted EBITDA of $39 million. In addition, the company issued 976,341 shares of Class A common stock to Nivagen Pharmaceuticals as part of its acquisition of MedisourceRx, expanding its product offering and market coverage.

In terms of analyst reviews, Citi maintained a Neutral rating, while Needham initiated a Buy rating. Instead, Jefferies cut its price target, citing the need to update its financial model. Deutsche Bank raised its target, highlighting the company’s growth prospects.

Hims & Hers Health also launched a Service Appreciation Initiative designed to provide low-cost weight loss treatments to US military, veterans, teachers, nurses and first responders. The company’s entry into the compound GLP-1 space has been a point of interest among analysts. For 2024, the company expects its revenue to fall between $1.37 billion and $1.4 billion, with adjusted EBITDA between $140 million and $155 million.

InvestingPro Insights

Given CEO Andrew Dudum’s recent selloff, some key metrics and insights from InvestingPro are worth noting that may provide additional context for investors considering Hims & Hers Health, Inc. (NYSE:HIMS). According to InvestingPro, the company boasts solid revenue growth, with the trailing twelve months to Q2 2024 showing significant growth of over 50%. This impressive growth rate indicates strong market demand for the company’s digital health services.

InvestingPro Tips points out that management has been actively involved in share buybacks, which often reflects confidence in the company’s future performance. Additionally, Hims & Hers Health is expected to post a rise in net income this year, which could reassure investors looking for profitability on their investments. Additionally, with three analysts revising their earnings upward for the coming period, there is an optimistic outlook on the company’s financial outlook.

From a valuation perspective, Hims & Hers Health is currently trading at a high multiple to earnings with a P/E ratio of 193.29. This valuation suggests that investors are willing to pay a premium for the company’s stock, possibly because of anticipated growth and profitability. However, it’s important to consider that the company is also trading at a high P/E ratio relative to near-term earnings growth, indicating that the stock may be bullishly valued.

For those interested in additional information, InvestingPro offers additional advice on Hims & Hers Health, Inc., which can be found at https://www.investing.com/pro/HIMS. These tips provide additional analysis and data points that could be critical to making informed investment decisions.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.