Hims & Hers Stock Slumps Pre-Q3 as Drug Pricing Concerns Rattle Investors
Hims & Hers shares have come under renewed pressure this week, as insider selling and drug pricing remarks overshadow optimism ahead of...
Quick overview
- Hims & Hers shares have dropped 23% this week, falling below the 200-day moving average amid concerns over drug pricing and insider selling.
- CEO Andrew Dudum's recent sale of 175,000 shares has raised investor unease about management's confidence in the company's near-term prospects.
- Despite the decline, analysts project a 45% year-over-year revenue increase for Q3, with earnings expected to rise 50% to $0.09 per share.
- The company has reaffirmed its 2025 revenue forecast, but growing political scrutiny and market volatility have created caution among investors.
Hims & Hers shares have come under renewed pressure this week, as insider selling and drug pricing remarks overshadow optimism ahead of its Q3 earnings report.
Market Reversal Wipes Out Recent Gains
After surging above $65 on the launch of its menopause and perimenopause service, Hims & Hers Health (NASDAQ: HIMS) stock suffered a steep 23% decline, tumbling toward the $50 level before breaking below its 200-day moving average to close at $44.06 on Thursday. The selloff followed comments from President Trump, who pledged to lower prices for popular weight-loss drugs like Ozempic — a move that could directly affect Hims’ telehealth revenue stream.
HIMS Chart Daily – Breaking Below the 200 SMA
The policy remarks sparked fears of tighter price controls, unsettling investors who worry that aggressive cost reductions could compress margins across the weight-loss and telehealth sectors.
HIMS Chart Weekly – Sellers Face the 50 SMA
Insider Sale Deepens Investor Unease
Concerns intensified when SEC filings revealed that CEO Andrew Dudum sold roughly 175,000 shares valued at about $11 million shortly after the stock’s brief rebound. While insider transactions aren’t always a red flag, the timing of this sale — just as shares regained strength — fed speculation about management’s near-term confidence and added to selling pressure.
Volatility Tests Long-Term Growth Story
Despite this week’s slide, analysts remain cautiously optimistic about the company’s fundamentals. The Zacks Consensus Estimate pegs third-quarter revenue at $583.7 million, up 45% year over year, with earnings expected to rise 50% to $0.09 per share.
However, with political scrutiny rising and investor sentiment cooling, the company’s earlier momentum — fueled by partnerships with Novo Nordisk and booming demand for telehealth solutions — has faced a sharp test.
Outlook: Stable Guidance, Shaky Confidence
Hims & Hers reaffirmed its 2025 revenue forecast of $2.3–$2.4 billion, projecting Q3 revenue between $570 million and $590 million with adjusted EBITDA in the $60–$70 million range. While executives maintain confidence in long-term opportunities, especially in hormone and mental health segments, the stock’s recent breakdown signals growing caution as the market awaits the November 3 earnings release.
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