SAN FRANCISCO – Hims & Hers Health, Inc. (NYSE:HIMS) Chief Legal Officer Boughton Soleil has sold shares in the company, according to a recent SEC filing. The transaction, which took place on July 23, involved the sale of 2,335 shares of Class A Common Stock at a price of $20.29 per share, totaling approximately $47,377.
This sale was conducted under a Rule 10b5-1 trading plan, which was adopted by the reporting person on September 10, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a legal defense against insider trading accusations by pre-establishing trades at a time when the insider does not possess any private information.
Following the sale, Soleil still owns a substantial number of shares in Hims & Hers Health, with a remaining total of 166,809 shares of Class A Common Stock. The transaction may be of interest to investors as they monitor the actions of high-level executives and their confidence in the company's performance and stock valuation.
Hims & Hers Health, Inc., headquartered in San Francisco, California, operates in the healthcare sector, focusing on providing accessible and convenient healthcare and wellness services to consumers. The company has been incorporated in Delaware and is known for its direct-to-consumer telehealth and wellness products.
The details of the sale were made public through the SEC's Form 4 filing, which insiders of publicly traded corporations use to report transactions in their company's shares. While the reasons for the sale are not disclosed, such filings provide transparency to the market and allow investors to see the trading activities of the company's insiders.
In other recent news, Hims & Hers Health, Inc. has made significant strides, appointing Kåre Schultz as a new independent director, expanding the board's size. This strategic addition is anticipated to offer valuable insights as the company continues to grow in the telehealth industry. Meanwhile, Hims & Hers has been the focus of multiple financial firms adjusting their price targets and ratings. Truist Securities revised its price target for the company to $23.00, maintaining a Hold rating. The company is expected to exceed revenue estimates by approximately $15 million for the second quarter of 2024. BofA Securities twice raised its price target for Hims and Hers, first to $22 and then to $26, after analyzing online revenue growth data and the potential of the company's GLP-1 product for weight loss. However, Citi downgraded the company from Buy to Neutral, despite raising the price target to $20, due to potential regulatory risks associated with the GLP-1 launch. These are recent developments that investors should note.
InvestingPro Insights
In light of the recent insider sale at Hims & Hers Health, Inc. (NYSE:HIMS), investors may find additional context in some key metrics and insights from InvestingPro. The company, which has been gaining attention for its innovative approach to healthcare and wellness, has a current market capitalization of $4.97 billion. Despite a negative P/E ratio, which stands at -2100, there are indications of positive momentum and future growth prospects.
One particularly notable metric is the company's impressive revenue growth over the last twelve months as of Q1 2024, which has surged by 55.65%. This growth is further reflected in the quarterly figures, with a 45.81% increase reported in Q1 2024. Additionally, the gross profit margin remains robust at 82.41%, suggesting efficient cost management relative to its revenues.
Investors may also be encouraged by two specific InvestingPro Tips: analysts have recently revised their earnings estimates upwards for the upcoming period, and the company is expected to become profitable this year. These insights suggest a positive outlook for Hims & Hers Health's financial performance, which could be a factor in the insider's decision to sell shares.
For those looking to delve deeper into the company's prospects, InvestingPro offers a wealth of further analysis, including 13 additional tips for Hims & Hers Health. These can be accessed through a subscription, and using the coupon code PRONEWS24, new subscribers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With this information, investors can make more informed decisions based on comprehensive data and expert insights.
Lastly, the company's stock has shown significant returns over the past week, with a 10.51% price total return, which could be indicative of current market sentiment and the stock's performance potential. Whether this insider sale signals a strategic move or simply a personal financial decision, the broader financial metrics and analyst optimism paint an intriguing picture for Hims & Hers Health.
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