Why Hims & Hers Health (HIMS) Shares Are Trading Lower Today

What Happened?

Shares of telehealth company Hims & Hers Health (NYSE:HIMS) fell 6.8% in the afternoon session after a Bank of America analyst maintained a Sell rating on the stock, citing multiple concerns about the company's near-term performance. 

The drop reversed some of the strong gains from the previous trading session, which occurred after the company announced a new care program for menopause. The analyst expressed concern over the company's ability to meet third-quarter sales expectations. The report highlighted weaker order growth, pointing to data that showed a 16% year-over-year decline in orders during September. The analyst also noted potential pressure on margins from rising customer acquisition costs, increased competition, and recent FDA reforms. The bank kept its price target at $28, which implied a significant potential downside from the stock's recent price levels.

The shares closed the day at $59.16, down 5.8% from previous close.

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What Is The Market Telling Us

Hims & Hers Health’s shares are extremely volatile and have had 99 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 5.7% on the news that the company announced the launch of perimenopause and menopause treatment options on its platform. This expansion into women's health offered customers access to personalized treatment plans and prescription medications, including estradiol and progesterone. The treatments were made available in various forms such as pills, patches, and creams. The move was seen as a significant step for the company, which was reportedly on a path to achieve over $1 billion in annual revenue by 2026. By adding these hormone-replacement therapies, Hims & Hers broadened its services for its large subscriber base.

Hims & Hers Health is up 135% since the beginning of the year, but at $59.13 per share, it is still trading 14% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $5,678.

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