Andrew Dudum, CEO of Hims & Hers Health, Inc. (NYSE:HIMS), has sold a significant portion of the company's Class A Common Stock, according to a recent SEC filing. On November 5, Dudum sold a total of 337,332 shares, generating approximately $6.9 million. The shares were sold at prices ranging from $20.0502 to $21.763.
In addition to these sales, Dudum exercised stock options to acquire 188,888 shares at $2.43 per share, adding approximately $458,997 to his holdings. Following these transactions, Dudum's remaining direct and indirect holdings in the company reflect a substantial stake, indicating continued involvement with Hims & Hers.
These transactions were executed under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a schedule for selling stocks to avoid potential conflicts of interest.
In other recent news, Hims & Hers Health, Inc. has showcased impressive financial performance with a 77% year-over-year increase in third-quarter sales, surpassing $400 million. The company's adjusted EBITDA also grew significantly, reaching over $50 million, indicating a healthy 13% margin. Piper Sandler, Needham, TD Cowen, Citi, Truist Securities, and BofA Securities have all updated their outlooks on the company, with various price target adjustments. Hims & Hers also announced plans to increase marketing expenditures in Q4 and to launch liraglutide, the first generic GLP-1, in 2025. The company is forecasting Q4 2024 revenue between $465 million and $470 million, marking an 89% to 91% year-over-year increase. The full-year revenue is projected to be 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
While CEO Andrew Dudum's recent stock transactions have caught investors' attention, Hims & Hers Health, Inc. (NYSE:HIMS) continues to demonstrate strong financial performance. According to InvestingPro data, the company's revenue growth has been impressive, with a 56.7% increase in the last twelve months as of Q3 2024. This robust growth is further emphasized by a quarterly revenue growth of 77.13% in Q3 2024.
The company's profitability metrics are also noteworthy. Hims & Hers boasts a high gross profit margin of 81.13%, indicating efficient cost management. Moreover, the company has turned profitable over the last twelve months, with a basic EPS of $0.47.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. Additionally, net income is expected to grow this year, potentially supporting the stock's valuation.
It's worth noting that HIMS is trading at a high P/E ratio of 50.51, which may be justified by its strong growth trajectory. The stock has also shown significant returns, with a 236.01% price total return over the past year.
For investors seeking more comprehensive analysis, InvestingPro offers 18 additional tips for HIMS, providing a deeper understanding of the company's financial health and market position.
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