SAN FRANCISCO, CA – Lynne Chou O'Keefe, a director at Hims & Hers Health, Inc. (NYSE:HIMS), has sold all of her direct holdings in the company. On March 19, 2024, O'Keefe disposed of 10,044 shares of Class A Common Stock at an average price of $15.52 per share, totaling $155,882.
The sale was conducted in accordance with a Rule 10b5-1 trading plan, which was adopted on May 11, 2023. These plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information. This enables them to trade shares systematically and avoid accusations of insider trading.
In addition to the sold shares, O'Keefe is also deemed a beneficial owner of shares held by Define Ventures Fund I, L.P., which owns 157,874 shares of Class A Common Stock indirectly. This relationship is noted as she may have a significant influence over the fund's investment decisions.
Furthermore, O'Keefe engaged in transactions involving Restricted Stock Units (RSUs), which represent a contingent right to receive one share of Class A Common Stock for each RSU. On March 15, 2024, she converted RSUs into 9,134 shares of Class A Common Stock, but these transactions were not associated with any direct financial transaction as RSUs are typically granted as part of compensation packages and convert into stock upon vesting.
The RSUs are subject to a service-based vesting requirement, which is satisfied over a 4-year period. The vesting schedule is designed so that 25% of the RSUs vest after the first year, with the remainder vesting in equal quarterly installments over the following three years.
Investors often monitor the trading activity of insiders like O'Keefe for insights into the company's performance and future prospects. While insider sales can sometimes raise concerns among shareholders, it is not uncommon for executives to sell shares for personal financial planning purposes.
Hims & Hers Health, Inc., headquartered in San Francisco, operates within the healthcare sector, focusing on providing accessible and convenient healthcare and wellness services.
InvestingPro Insights
Amidst the insider trading activity at Hims & Hers Health, Inc. (NYSE:HIMS), investors are keeping a keen eye on the company's financial health and market performance. According to InvestingPro data, Hims & Hers has a market capitalization of $3.34 billion and has experienced a significant revenue growth of 65.49% over the last twelve months as of Q4 2023.
Despite not having paid dividends and reporting a negative net income over the last twelve months, analysts predict that the company will become profitable this year. This is a crucial InvestingPro Tip that may influence investor sentiment, especially considering the company's robust revenue growth and the recent insider transactions. Moreover, with a Price / Book multiple of 9.77 and a P/E ratio of -163.21 for the same period, the company's valuation metrics suggest a high growth expectation from the market.
InvestingPro Tips also highlight the stock's strong return over the last month, with a one-month total price return of 55.93% as of the recent date. This surge is part of a larger pattern, with the stock delivering a six-month price total return of 150.64%, indicating a considerable price uptick in the short term.
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