SAN FRANCISCO—Michael Chi, Chief Commercial Officer of Hims & Hers Health, Inc. (NYSE:HIMS), recently executed a series of transactions involving the company's Class A common stock. On October 15, Chi sold 75,493 shares at a price of $22 per share, amounting to a total of approximately $1.66 million.
In addition to the sale, Chi exercised stock options to acquire shares at various prices. These included purchasing 15,000 shares at $13.90, 34,607 shares at $5.01, 21,777 shares at $6.82, and 4,109 shares at $11.53. The total value of these acquisitions was approximately $577,776.
These transactions were conducted under a Rule 10b5-1 trading plan adopted on March 1, 2024. Following these transactions, Chi holds 193,980 shares directly.
In other recent news, Hims & Hers Health, Inc. reported a 52% year-over-year revenue increase in Q2 2024, reaching $316 million, with an adjusted EBITDA of $39 million. The company also expanded its product offerings and market reach through the acquisition of MedisourceRx, issuing 976,341 Class A common shares to Nivagen Pharmaceuticals, Inc. In recent analyst evaluations, BofA Securities raised Hims & Hers' price target to $23.00, while Truist Securities and Citi maintained their Hold and Neutral ratings respectively.
Notably, the FDA's decision to revisit the shortage of Tirzepatide and the continued authorization for compounding pharmacies to produce its compounded version has been cited as significant. Canaccord Genuity (TSX:CF) maintained its Buy rating on Hims & Hers, highlighting the potential of its compounded GLP-1 medications amid rising obesity trends, with an estimated total addressable market of approximately $6 to $8 billion.
In addition, Hims & Hers launched a Service Appreciation Initiative offering discounted weight loss treatments to service members. These recent developments reflect the ongoing evolution of Hims & Hers amidst regulatory decisions and market trends.
InvestingPro Insights
The recent stock transactions by Hims & Hers Health's Chief Commercial Officer Michael Chi come at a time when the company is experiencing significant growth and market attention. According to InvestingPro data, Hims & Hers has seen impressive revenue growth, with a 50.15% increase in the last twelve months as of Q2 2024, reaching $1.07 billion. This strong performance is reflected in the stock's remarkable 263.06% price return over the past year.
InvestingPro Tips highlight that the company's net income is expected to grow this year, and analysts predict profitability for the current fiscal year. This positive outlook aligns with the company's recent financial performance, as Hims & Hers has been profitable over the last twelve months.
However, investors should note that the stock is trading at a high earnings multiple, with a P/E ratio of 268.24. This valuation suggests that market expectations for future growth are substantial. The company's strong revenue growth and improving profitability may justify this premium, but it also indicates that the stock could be sensitive to any changes in growth projections or market sentiment.
It's worth noting that InvestingPro offers 16 additional tips for Hims & Hers Health, providing a more comprehensive analysis for investors interested in deeper insights into the company's financial health and market position.
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