SAN FRANCISCO—Michael Chi, Chief Commercial Officer at Hims & Hers Health, Inc. (NYSE:HIMS), recently executed a series of stock transactions involving the company's Class A Common Stock, as disclosed in a recent SEC filing.
On November 11, Chi sold 7,259 shares of Hims & Hers Health stock at a price of $24.77 per share, amounting to a total of $179,805. This sale was part of a pre-established trading plan under Rule 10b5-1, which Chi adopted on March 1, 2024.
In addition to the sale, Chi exercised stock options to acquire 7,259 shares at a price of $6.82 per share, totaling $49,506. Following these transactions, Chi's direct ownership in Hims & Hers Health stands at 193,980 shares.
Additionally, Chi made a gift of 10,000 shares to a Donor Advised Fund, a transaction that did not involve any financial exchange. This philanthropic gesture leaves Chi with a remaining balance of 183,980 shares.
These transactions reflect Chi's ongoing management of his equity stake in the company, aligning with his long-term investment and philanthropic strategies.
In other recent news, Hims & Hers Health, Inc. has been the subject of multiple analyst adjustments following strong third-quarter results. Piper Sandler raised its target to $21, citing solid growth, while Needham increased its price target to $28, highlighting the company's impressive performance. TD (TSX:TD) Cowen reiterated a Buy rating with a $25 target, Citi lifted its target to $24, and Truist Securities maintained a Hold rating with a $23 target. BofA Securities also raised its target to $27, maintaining a Buy rating. These adjustments reflect the company's robust financial performance, which saw a 77% year-over-year increase in Q3 sales, surpassing $400 million, and a significant rise in adjusted EBITDA to over $50 million.
The company has also revealed plans to increase Q4 marketing expenditures and launch liraglutide, the first generic GLP-1, in 2025. Hims & Hers is forecasting Q4 2024 revenue between $465 million and $470 million, marking an 89% to 91% year-over-year increase, and full-year revenue between $1.46 billion and $1.465 billion, reflecting a 67% to 68% increase. These are recent developments in the company's operations.
InvestingPro Insights
Recent transactions by Hims & Hers Health's Chief Commercial Officer, Michael Chi, offer a glimpse into the company's robust performance and market position. According to InvestingPro data, Hims & Hers Health has experienced remarkable growth, with a staggering 199.89% year-to-date price total return as of the latest available data. This impressive performance aligns with the company's strong financial metrics.
InvestingPro Tips reveal that Hims & Hers Health's net income is expected to grow this year, and the company has been profitable over the last twelve months. This positive outlook is further supported by the fact that four analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's future performance.
The company's revenue growth has been particularly noteworthy, with a 56.7% increase in the last twelve months, reaching $1.24 billion. This growth is complemented by a healthy gross profit margin of 81.13%, indicating efficient cost management.
While Chi's stock sale might raise questions, it's important to note that the company's stock is trading at a high P/E ratio of 59.2, which could explain the timing of the sale. Additionally, the exercise of stock options at a lower price suggests continued confidence in the company's prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Hims & Hers Health, providing deeper insights into the company's financial health and market position.
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