Irene Becklund, the Principal Accounting Officer (PAO) of Hims & Hers Health, Inc. (NYSE:HIMS), has sold shares of the company's stock, according to a recent filing with the Securities and Exchange Commission. On July 16, 2024, Becklund sold 472 shares at a price of $23.23 per share, totaling approximately $10,964 in value.
This transaction follows the exercise of stock options under a Rule 10b5-1 trading plan, which Becklund adopted on September 11, 2023. The stock options exercised on the same date were priced at $9.41 per share, amounting to a total of $4,441 for 472 shares. The shares of Class A common stock that were involved in the option exercise vest monthly over four years, contingent on Becklund's ongoing service with the company.
Hims & Hers Health, Inc., headquartered in San Francisco, California, operates within the healthcare sector, providing services through offices and clinics of doctors of medicine. The company, incorporated in Delaware, has been publicly traded and has undergone a name change from Oaktree Acquisition Corp. since April 12, 2019.
The transactions were executed in accordance with pre-established trading plans, which allow company insiders to sell a predetermined number of shares at a specified time. These plans are often used by corporate executives to avoid any accusations of insider trading, as they are set up when the executive is not in possession of any material non-public information.
Following the sale, Becklund's direct ownership in Hims & Hers Health, Inc. has decreased, but she remains a significant holder of the company's securities. The details of the transactions were made public through the mandatory filing with the SEC, offering transparency into the trading activities of the company's executives.
Investors and market watchers often scrutinize insider transactions as they can provide insights into the executives' perspectives on the company's future prospects. However, it's important to note that these transactions do not necessarily indicate a lack of confidence in the company and can be motivated by various personal financial considerations.
In other recent news, Hims & Hers Health, Inc.'s recent endeavors have caught the attention of various financial firms. Piper Sandler increased its price target for the company to $18, maintaining a neutral stance. The firm highlighted potential risks associated with the company's involvement with GLP-1 drugs, including potential litigation and questions about the safety and effectiveness of compounded GLP-1s.
TD Cowen, on the other hand, expressed a positive outlook, raising the share price target to $25, reflecting the company's potential growth in the compounding pharmacy market. BofA Securities increased its price target for Hims & Hers twice, first to $22.00 and then to $26.00, citing the company's online revenue growth and the potential of its GLP-1 product for weight loss.
In contrast, Citi revised its stance on Hims & Hers, downgrading the company from Buy to Neutral, despite raising the price target to $20.00 due to potential regulatory risks associated with the GLP-1 launch. Canaccord Genuity also revised its price target for the company to $24.00, following the announcement of a new addition to its weight loss treatment options. These recent developments highlight the varied perspectives of different firms on Hims & Hers' future prospects.
InvestingPro Insights
As investors evaluate the recent insider transactions at Hims & Hers Health, Inc. (NYSE:HIMS), it's essential to consider the company's financial health and market performance. According to InvestingPro data, HIMS has experienced a notable 55.65% revenue growth over the last twelve months as of Q1 2024, which is a strong indicator of the company's growing market presence. Furthermore, the company's gross profit margin stands at an impressive 82.41%, underscoring its ability to maintain profitability on its services.
Despite the high Price / Book multiple of 14.24, which suggests a premium valuation, HIMS has demonstrated a significant return over the last week with an 11.7% price total return. This could reflect investor confidence in the company's trajectory. Moreover, HIMS has seen a remarkable 173.17% price total return over the last six months, indicating robust investor interest and potentially aligning with the InvestingPro Tip that analysts predict the company will be profitable this year.
InvestingPro Tips further reveal that three analysts have revised their earnings upwards for the upcoming period, and the company is expected to grow its net income. Such positive forecasts may provide a counterbalance to the insider selling activity and suggest a favorable outlook for HIMS. For those looking to delve deeper into HIMS's financials and market predictions, InvestingPro offers additional insights, including 13 more InvestingPro Tips for the company, available at https://www.investing.com/pro/HIMS. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, enhancing their investment research with comprehensive analysis and data.
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