Shares of Hims & Hers Health, Inc. (NYSE:HIMS) have garnered a consensus rating of “Hold” from the seventeen brokerage firms monitoring the company, according to MarketBeat. The ratings reflect a range of perspectives, with four analysts recommending a sell, nine suggesting a hold, three advocating for a buy, and one issuing a strong buy recommendation.
The average 12-month price target among analysts covering the stock over the past year stands at approximately $44.54. Recent comments from equity analysts have provided further insight into the company’s performance and market positioning. Notably, Leerink Partners upgraded Hims & Hers Health from a “hold” to a “strong buy” on December 4, 2023, indicating growing confidence in the company’s prospects. Conversely, Zacks Research downgraded the stock from a “hold” to a “strong sell” on January 19, 2024.
Barclays initiated coverage with an “overweight” rating on December 8, 2023, setting a price target of $48.00. Meanwhile, Evercore ISI issued an “in-line” rating with a price objective of $33.00. On November 4, 2023, Bank of America raised its price target from $28.00 to $32.00 while maintaining an “underperform” rating.
Investor activity has also seen significant movements. Farallon Capital Management LLC increased its holdings by 30.8% in the third quarter, now owning approximately 10.75 million shares valued at around $609.56 million. Additionally, Invesco Ltd. expanded its holdings by a remarkable 502.2% during the second quarter, acquiring over 2.12 million shares worth about $127.24 million. As of now, institutional investors hold approximately 63.52% of the company’s stock.
Stock Performance and Financial Results
On November 3, 2023, Hims & Hers Health reported its quarterly earnings results, revealing earnings of $0.06 per share, which fell short of analysts’ expectations of $0.09 by $0.03. The company recorded revenue of $598.98 million, surpassing projections of $578.99 million. This revenue reflects a substantial year-over-year increase of 49.2%, although the net margin stood at 6.05%, with a return on equity of 24.67%. Analysts anticipate that the company will achieve earnings of $0.29 per share for the current fiscal year.
Hims & Hers Health’s stock is currently trading at around $29.63, with a 52-week range between $23.97 and $72.98. The company’s financial metrics include a debt-to-equity ratio of 1.67, a current ratio of 1.88, and a quick ratio of 1.64. The market capitalization is approximately $6.74 billion, with a price-to-earnings (P/E) ratio of 54.86 and a beta of 2.37.
In a strategic move, Hims & Hers Health announced a share repurchase program on November 17, 2023, authorizing up to $250 million to buy back shares, representing about 3% of its total shares. Such buyback initiatives often suggest that the board believes the stock is undervalued.
About Hims & Hers Health
Hims & Hers Health, Inc. operates as a telehealth platform, providing direct-to-consumer personal care products and virtual medical services in the United States. Under the Hims & Hers brand, the company offers an integrated digital experience that connects users with licensed healthcare providers. This enables online consultations and prescriptions for various health conditions. The firm’s product range encompasses men’s and women’s health issues, including treatments for hair loss, sexual wellness therapies, skincare products, and mental health support.
The evolving landscape of telehealth continues to grow, with Hims & Hers Health positioning itself as a significant player in the market. With its focus on accessibility and consumer-driven healthcare, the company’s future developments will be closely watched by investors and analysts alike.
