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Hims & Hers health CEO Andrew Dudum sells over $1m in company stock

Published 06/21/2024, 04:33 PM

In a recent transaction, Andrew Dudum, CEO of Hims & Hers Health, Inc. (NYSE:HIMS), sold a total of $1,051,087 worth of company stock, according to a Form 4 filed with the Securities and Exchange Commission. The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading.

The transactions, dated June 20, 2024, involved the sale of shares at prices ranging from $22.3457 to $24.3075. The average weighted prices for the shares sold were reported to be $22.3457, $23.3661, and $24.3075, with the shares being sold in various price ranges: from $21.92 to $22.91, from $22.92 to $23.91, and from $24.03 to $24.49, respectively.

This sale has adjusted Dudum's direct ownership in the company to a total of 33,502 shares of Class A Common Stock. Additionally, Dudum holds indirect ownership through various trusts, with significant holdings reported by trustees, indicating a diversified investment in the company's equity.

It is not uncommon for executives to sell part of their stake in the company they manage, and such sales are often planned in advance for personal financial management reasons. Investors typically monitor insider selling for insights into executive sentiment and potential future company performance, although such transactions do not always indicate a lack of confidence in the company's prospects.

Hims & Hers Health, Inc., headquartered in San Francisco, operates in the healthcare sector, specifically focusing on providing services through offices and clinics of doctors of medicine. The company has been publicly traded and continues to be a notable player in the healthcare industry.

In other recent news, Hims & Hers Health, Inc. has been the focus of several updates from financial firms. BofA Securities recently raised its price target for Hims & Hers twice, first from $17.25 to $22.00, and then to $26.00, maintaining a Buy rating each time. The firm cited the successful launch of the company's GLP-1 product and the potential for increased online revenue growth as key factors.

In contrast, Citi downgraded Hims & Hers from Buy to Neutral, despite raising its price target from $16.00 to $20.00. The firm cited potential risks associated with the launch of the GLP-1 program, despite acknowledging the company's cautious approach. Meanwhile, Canaccord Genuity increased its price target for Hims & Hers to $24.00 from $20.00, following the announcement of a new addition to the company's weight loss treatment options.

Truist Securities held steady, maintaining a Hold rating on Hims & Hers shares with a stock price target of $13.00, following the expansion of its weight loss program. These are the latest developments in the company's ongoing growth and diversification efforts.

InvestingPro Insights

Amidst the news of CEO Andrew Dudum's recent stock sale, Hims & Hers Health, Inc. (NYSE:HIMS) demonstrates a mix of financial metrics that could be of interest to investors. According to the latest data from InvestingPro, the company boasts a market capitalization of $4.73 billion, showcasing its substantial presence in the healthcare sector. Despite a negative P/E ratio of -2000, reflecting challenges in profitability, the company's revenue growth paints a more optimistic picture. The last twelve months as of Q1 2024 have seen a notable revenue increase of 55.65%, indicating strong sales performance.

InvestingPro Tips suggest that Hims & Hers Health, Inc. is expected to grow its net income this year, which may align with the observed revenue uptrend. Additionally, the company has been trading at a high EBITDA valuation multiple, which could suggest investor confidence in its future earning potential. With a Price / Book ratio of 13.8, the company is valued above its book value, which could be attributed to the market's expectations of future growth or potentially undervalued assets.

For investors seeking a deeper analysis, there are further InvestingPro Tips available, with a total of 13 additional insights that could help in making a more informed decision. These include observations on the company's liquidity, debt levels, and profitability forecasts. Interested readers can unlock these insights and benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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