SAN FRANCISCO—Boughton Soleil, the Chief Legal Officer of Hims & Hers Health, Inc. (NYSE:HIMS), has sold a portion of the company's Class A common stock, according to a recent SEC filing. The transaction, which took place on October 15, involved the sale of 2,339 shares at an average price of $20.41 per share, totaling approximately $47,738.
Following this sale, Soleil retains ownership of 172,274 shares in the company. The transaction was conducted under a Rule 10b5-1 trading plan, which was adopted on September 10, 2023. These plans allow company insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest.
Hims & Hers Health, known for its telehealth services, continues to be a focal point for investors watching the health and wellness sector.
In other recent news, Hims & Hers Health, Inc. reported a 52% year-over-year revenue increase in Q2 2024, reaching $316 million, and an adjusted EBITDA of $39 million. The company also issued 976,341 Class A common shares to Nivagen Pharmaceuticals, Inc., expanding its product offerings and market reach through the acquisition of MedisourceRx. Amid these developments, the U.S. Food and Drug Administration (FDA) is reassessing the availability of tirzepatide, a drug previously on the agency's shortage list. This follows a lawsuit from the Outsourcing Facilities Association arguing that tirzepatide was still in short supply. BofA Securities and Canaccord Genuity (TSX:CF) have maintained their Buy rating on Hims & Hers, while Citi and Truist Securities have kept a Neutral stance. These recent developments illustrate the dynamic environment in which Hims & Hers operates, with regulatory decisions and market trends influencing the company's trajectory.
InvestingPro Insights
While Boughton Soleil's recent stock sale might raise eyebrows, it's important to contextualize this transaction within Hims & Hers Health's broader financial landscape. According to InvestingPro data, the company's market capitalization stands at an impressive $4.87 billion, reflecting strong investor confidence in its telehealth model.
Hims & Hers has demonstrated remarkable growth, with revenue increasing by 50.15% over the last twelve months as of Q2 2024, reaching $1.07 billion. This robust revenue growth aligns with an InvestingPro Tip suggesting that net income is expected to grow this year. The company's gross profit margin is notably high at 82.19%, indicating efficient cost management in its telehealth operations.
However, investors should note that HIMS is trading at a high earnings multiple, with a P/E ratio of 268.24. This valuation suggests that the market has priced in significant future growth expectations. Another InvestingPro Tip indicates that the stock's RSI suggests it may be in overbought territory, which could be relevant for investors considering the recent insider sale.
For those seeking a deeper understanding of Hims & Hers' financial health and market position, InvestingPro offers 16 additional tips, providing a comprehensive analysis for informed investment decisions.
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