Hims & Hers Health, Inc. (NYSE:HIMS) Chief Financial Officer, Okupe Oluyemi, has recently sold a significant number of shares in the company. According to the latest filings, Oluyemi sold a total of 10,581 shares of Class A Common Stock at an average price range between $18.8815 and $19.0815, netting approximately $219,084 from the sale.
The transactions took place on October 2, 2024, and were reported through a Form 4 filing with the Securities and Exchange Commission. It was noted that the sales were conducted under a pre-arranged 10b5-1 trading plan, which allows insiders to sell shares at predetermined times to avoid accusations of insider trading.
In addition to the sales, the CFO exercised options to acquire 6,437 shares of Class A Common Stock at a price of $5.01 per share, totaling $32,249. These shares were part of a stock option plan with a vesting schedule that began in January 2022, as per the footnotes in the filing. Following these transactions, Oluyemi's direct ownership in the company stands at 205,856 shares of Class A Common Stock.
The sale of shares by a company's CFO can be of interest to investors, as it may provide insights into the executive's perspective on the company's current valuation and future prospects. However, it is important to note that trading plans like the one Okupe Oluyemi has in place are commonly used by corporate executives to manage their stock holdings and should not be solely interpreted as a lack of confidence in the company.
Hims & Hers Health, Inc. operates as a telehealth company offering a modern approach to health and wellness. Its shares are traded on the New York Stock Exchange under the ticker symbol HIMS.
In other recent news, Hims & Hers Health, Inc. reported significant growth, with Q2 2024 revenue up by 52% year-over-year, reaching $316 million, and an adjusted EBITDA of $39 million. The company also issued 976,341 Class A common shares to Nivagen Pharmaceuticals, Inc. as part of the MedisourceRx acquisition. The recent FDA removal of Tirzepatide from its shortage list, while not affecting Hims & Hers directly, could limit future expansion plans.
Hims & Hers also launched a Service Appreciation Initiative offering discounted weight loss treatments to U.S. military, veterans, teachers, nurses, and first responders. Analyst notes reveal a mix of ratings: Citi maintained a Neutral rating, Needham initiated a Buy rating, while Jefferies reduced its price target. Deutsche Bank increased its target, emphasizing the company's growth prospects.
Hims & Hers projects its 2024 revenue to be between $1.37 billion and $1.4 billion, with an adjusted EBITDA between $140 million and $155 million. These are recent developments, and as always, investors are advised to consider all available information before making investment decisions.
InvestingPro Insights
To provide additional context to the recent insider selling by Hims & Hers Health's CFO, it's worth examining some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Hims & Hers Health (NYSE:HIMS) has shown impressive growth, with revenue increasing by 50.15% over the last twelve months to $1.07 billion. This strong performance is reflected in the company's stock price, which has seen a remarkable 205.15% return over the past year.
Despite the CFO's recent share sale, there are positive indicators for the company. An InvestingPro Tip highlights that net income is expected to grow this year, and three analysts have revised their earnings upwards for the upcoming period. This suggests confidence in the company's near-term financial prospects.
However, investors should note that HIMS is trading at a high P/E ratio of 199.41, which may indicate that the stock is priced for significant future growth. This valuation metric aligns with another InvestingPro Tip stating that the company is trading at a high earnings multiple.
For those interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for HIMS, providing a deeper understanding of the company's financial health and market position.
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