Michael Chi, the Chief Commercial Officer of Hims & Hers Health, Inc. (NYSE:HIMS), has sold a total of 17,303 shares of company stock, according to a recent SEC filing. The transactions, which took place on June 24, 2024, were executed at an average price of $22.07 per share, resulting in a total value of $381,877.
The sale was conducted under a Rule 10b5-1 trading plan, which was previously adopted by Chi on March 1, 2024. Such plans allow company insiders to set up a predetermined schedule for buying and selling shares at a time when they are not in possession of material non-public information, thereby helping to avoid any accusations of insider trading.
On the same day, Chi exercised options to purchase 17,303 shares of Hims & Hers Health at a price of $5.01 per share, amounting to a total transaction value of $86,688. The options exercised are part of a service-based vesting agreement that began on March 24, 2022, with portions of the options vesting monthly over a 4-year period.
Following these transactions, Chi's direct ownership in the company stands at 185,326 shares of Class A Common Stock. The filing also noted that the options exercised are set to expire on February 24, 2032.
Hims & Hers Health, Inc. is a telehealth company that provides a modern approach to health and wellness. The company's offerings include a range of prescription medications, over-the-counter products, and personal care items designed to address a wide spectrum of health needs.
Investors and stakeholders often monitor insider transactions as they can provide insights into an executive's view of the company's stock value and future performance. However, it's important to note that these transactions do not necessarily indicate a change in company strategy or performance and may simply reflect an individual's financial or tax planning needs.
In other recent news, Hims & Hers Health, Inc. has been the subject of several analyst notes. BofA Securities twice raised its price target for Hims & Hers, initially to $22 from $17.25, and later to $26 from $22, maintaining a Buy rating on both occasions. The firm cited accelerated online revenue growth and the successful launch of the company's GLP-1 product as key drivers. Canaccord Genuity (TSX:CF) also increased its price target for Hims & Hers to $24 from $20, following the introduction of a new addition to the company's weight loss treatment options.
However, amid the positive revisions, Citi downgraded Hims & Hers from Buy to Neutral, even as it raised the price target to $20 from $16. Citi cited potential regulatory and legal risks associated with the launch of the new GLP-1 program. Meanwhile, Truist Securities maintained a Hold rating on Hims & Hers shares, with a steady stock price target of $13, following the expansion of its weight loss program. These are recent developments, and investors should take note of these analyst notes as they reflect the latest perspectives on the company's performance and growth prospects.
InvestingPro Insights
Amidst the recent insider trading activity at Hims & Hers Health, Inc., a closer look at the company's financial health and market performance through InvestingPro data and tips can provide investors with additional context. The telehealth firm, currently with a market capitalization of $4.97 billion, has displayed a significant revenue growth of 55.65% over the last twelve months as of Q1 2024. This growth trajectory is further underscored by a quarterly revenue growth of 45.81% in Q1 2024, signaling a robust expansion in its telehealth and wellness offerings.
Despite not being profitable over the last twelve months, Hims & Hers Health has a notable gross profit margin of 82.41%, which suggests a strong underlying efficiency in its business operations. Additionally, an InvestingPro Tip highlights that analysts are optimistic about the company's prospects, predicting that Hims & Hers Health will become profitable this year. This anticipated turnaround in net income, along with a high return over the last year and a particularly strong return over the last month of 37.2%, positions the company as a potentially attractive investment for those looking at growth potential.
Investors considering Hims & Hers Health may also be interested in the company's performance metrics, such as the impressive 166.51% price total return over the last six months and a 181.75% return over the last year. These figures suggest that the stock has been gaining momentum in the market. Furthermore, with liquid assets surpassing short-term obligations, as pointed out by another InvestingPro Tip, the company maintains a sound liquidity position.
For those looking to delve deeper into Hims & Hers Health's financials and market performance, there are additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/HIMS. The platform offers a total of 12 additional tips to help investors make informed decisions. To enhance your investing toolkit, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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