SAN FRANCISCO—Michael Chi, the Chief Commercial Officer of Hims & Hers Health, Inc. (NYSE:HIMS), recently executed a series of stock transactions involving the company’s Class A Common Stock. According to the latest SEC filings, Chi sold 7,500 shares on December 19, 2024, at a price of $26 per share, resulting in a total transaction value of $195,000.
Prior to the sale, Chi exercised stock options to acquire 7,500 shares at a price of $13.90 per share. These transactions were carried out under a pre-established Rule 10b5-1 trading plan, which Chi adopted on March 1, 2024. Following these transactions, Chi’s direct ownership stands at 193,601 shares. The company maintains strong financial health with an "GREAT" rating from InvestingPro, which offers comprehensive analysis through its Pro Research Reports.
The stock option exercises are part of a service-based vesting schedule, with the options fully vesting over a four-year period. This schedule was initiated on April 19, 2022, with subsequent monthly vesting. Despite a recent 16% decline over the past week, the company maintains robust financials with a healthy current ratio of 2.14 and minimal debt levels.
In other recent news, Hims & Hers Health saw a significant shift in the market dynamics for obesity drugs following the FDA’s resolution of the tirzepatide injection shortage. The decision, which ends a period of leniency for pharmacies compounding, distributing, or dispensing the drug, has potential implications for the company’s compounded drug offerings. On a positive note, Morgan Stanley (NYSE:MS) initiated coverage on Hims & Hers Health, assigning the stock an Overweight rating and recognizing the company’s impressive revenue growth potential. The firm’s bullish stance is based on the company’s strong performance in the digital health and direct-to-consumer sectors.
In addition, Hims & Hers Health reported a 77% year-over-year increase in Q3 sales, surpassing $400 million, with an adjusted EBITDA over $50 million. The company also forecasted Q4 2024 revenue between $465 million and $470 million, marking an 89% to 91% year-over-year increase. Hims & Hers Health has also announced a collaboration with Eli Lilly (NYSE:LLY) to streamline access to FDA-approved obesity medication Zepbound, integrating with LillyDirect, a self-pay pharmacy channel.
In other developments, the company has seen its shares surge following a report suggesting potential benefits from President-elect Donald Trump’s nominee for the FDA commissioner, Dr. Martin Makary, an executive at a telehealth company. The implications of having an FDA commissioner with direct ties to the industry could be significant for Hims & Hers Health and the broader market of compounded GLP-1 drugs. These recent developments highlight the evolving landscape for Hims & Hers Health amid regulatory changes and strategic partnerships.
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