Hims & Hers Health (NYSE:HIMS) Shares Gap Down – Time to Sell?

Shares of Hims & Hers Health, Inc. (NYSE:HIMS) gapped down before the market opened on Tuesday . The stock had previously closed at $31.77, but opened at $29.71. Hims & Hers Health shares last traded at $30.9070, with a volume of 6,076,303 shares traded.

Key Stories Impacting Hims & Hers Health

Here are the key news stories impacting Hims & Hers Health this week:

• Positive Sentiment: Raised revenue outlook: Hims & Hers increased its 2026 revenue forecast to $3.1 billion-$3.3 billion from $2.8 billion-$3.0 billion. Third-quarter revenue guidance of $880 million-$900 million also exceeds the current consensus estimate. Hims & Hers Boosts Revenue Target, Swings to Second-Quarter Loss
• Positive Sentiment: Solid growth drivers: Second-quarter revenue reached approximately $753.2 million, up 38.2% year over year and above analysts’ expectations. Subscriber growth, personalized healthcare offerings, AI-driven engagement and expansion of specialty care supported management’s optimistic outlook. Hims & Hers raises annual forecast revenue on strong subscriber growth
• Positive Sentiment: Analyst support: Needham raised its price target for HIMS from $35 to $42 and maintained a Buy rating, citing potential upside from the company’s growth initiatives. Needham raises Hims & Hers price target
• Neutral Sentiment: AI and international expansion: Management highlighted artificial intelligence, broader specialty-care services and Eucalyptus’s international reach as long-term growth opportunities, although these initiatives may require continued investment.
• Negative Sentiment: Large earnings miss: Hims & Hers reported a second-quarter loss of $0.37 per share, versus expectations for a loss of about $0.05, reversing year-ago earnings of $0.17 per share. The loss was also wider than some data providers’ estimates. Hims & Hers Health Slides on Wider-Than-Expected Q2 Loss
• Negative Sentiment: Margin pressure: Spending on branded GLP-1 weight-loss treatments and international expansion is weighing on profitability. Investors appear more concerned about the cost and timing of these investments than about the company’s revenue growth. Hims & Hers shares slide as costly weight-loss push squeezes margins
• Negative Sentiment: Legal overhang: Several law firms have announced investigations into potential securities-law violations or alleged fiduciary-duty breaches. These announcements do not establish wrongdoing but add uncertainty and headline risk for shareholders. Kaplan Fox investigation announcement

Analyst Ratings Changes

A number of analysts recently weighed in on HIMS shares. Jefferies Financial Group set a $24.50 price target on Hims & Hers Health in a research note on Tuesday, May 12th. Truist Financial raised their target price on Hims & Hers Health from $23.00 to $27.00 and gave the company a “hold” rating in a report on Friday, July 24th. Bank of America boosted their target price on shares of Hims & Hers Health from $36.00 to $37.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Citigroup upped their price target on shares of Hims & Hers Health from $28.00 to $35.00 and gave the stock a “neutral” rating in a research note on Thursday, July 23rd. Finally, Needham & Company LLC increased their price target on shares of Hims & Hers Health from $35.00 to $42.00 and gave the company a “buy” rating in a report on Tuesday. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $32.43.

Hims & Hers Health Price Performance

The company has a debt-to-equity ratio of 2.18, a current ratio of 1.69 and a quick ratio of 1.56. The company has a 50-day moving average price of $31.94 and a 200-day moving average price of $26.07. The firm has a market capitalization of $7.18 billion, a PE ratio of -343.16, a P/E/G ratio of 88.90 and a beta of 2.40.

Hims & Hers Health (NYSE:HIMS) last posted its quarterly earnings data on Monday, May 11th. The company reported ($0.40) EPS for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.44). Hims & Hers Health had a positive return on equity of 6.10% and a negative net margin of 0.56%.The company had revenue of $608.10 million for the quarter, compared to analysts’ expectations of $616.84 million. During the same quarter in the prior year, the business posted $0.20 EPS. The company’s revenue for the quarter was up 3.8% compared to the same quarter last year. Sell-side analysts forecast that Hims & Hers Health, Inc. will post 0.03 EPS for the current year.

Insider Activity at Hims & Hers Health

In other news, CFO Oluyemi Okupe sold 7,163 shares of Hims & Hers Health stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $36.49, for a total transaction of $261,377.87. Following the completion of the sale, the chief financial officer directly owned 284,321 shares in the company, valued at $10,374,873.29. The trade was a 2.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director David B. Wells acquired 48,400 shares of Hims & Hers Health stock in a transaction that occurred on Tuesday, May 26th. The shares were purchased at an average cost of $24.23 per share, for a total transaction of $1,172,732.00. Following the purchase, the director directly owned 224,417 shares of the company’s stock, valued at approximately $5,437,623.91. This trade represents a 27.50% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold 83,126 shares of company stock worth $2,711,339 over the last three months. Company insiders own 11.76% of the company’s stock.

Institutional Investors Weigh In On Hims & Hers Health

Several hedge funds have recently made changes to their positions in HIMS. Bank of New York Mellon Corp acquired a new position in Hims & Hers Health in the second quarter valued at $46,220,000. Handelsbanken Fonder AB boosted its stake in Hims & Hers Health by 4.0% in the 2nd quarter. Handelsbanken Fonder AB now owns 60,000 shares of the company’s stock worth $2,080,000 after buying an additional 2,300 shares during the last quarter. Valeo Financial Advisors LLC purchased a new stake in Hims & Hers Health in the 2nd quarter valued at about $225,000. FNY Investment Advisers LLC purchased a new stake in Hims & Hers Health in the 2nd quarter valued at about $347,000. Finally, GAMMA Investing LLC increased its stake in shares of Hims & Hers Health by 32.0% during the 2nd quarter. GAMMA Investing LLC now owns 4,654 shares of the company’s stock valued at $161,000 after acquiring an additional 1,128 shares during the last quarter. Institutional investors and hedge funds own 63.52% of the company’s stock.

About Hims & Hers Health

Hims & Hers Health, Inc is a telehealth platform providing direct-to-consumer personal care products and virtual medical services in the United States. Operating under the Hims & Hers brand, the company offers an integrated digital experience that connects users with licensed healthcare providers, enabling online consultations and prescriptions for a range of conditions. Its telemedicine infrastructure supports both prescription medications and over-the-counter products, with home delivery to patients’ doorsteps.

The company’s product portfolio addresses key areas of men’s and women’s health, including hair loss treatments, sexual wellness therapies, skincare regimens and mental health support.