Hims & Hers Health (NYSE:HIMS) Shares Gap Down After Earnings Miss

Hims & Hers Health, Inc. (NYSE:HIMS)’s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $31.77, but opened at $29.71. Hims & Hers Health shares last traded at $30.9070, with a volume of 6,076,303 shares trading hands.

The company reported ($0.37) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.32). Hims & Hers Health had a negative return on equity of 5.89% and a negative net margin of 5.51%.The company had revenue of $753.21 million for the quarter, compared to analyst estimates of $698.90 million. During the same quarter in the previous year, the company posted $0.17 earnings per share. The company’s quarterly revenue was up 38.2% compared to the same quarter last year.

Key Hims & Hers Health News

Here are the key news stories impacting Hims & Hers Health this week:

• Positive Sentiment: Second-quarter revenue increased 38.2% year over year to $753.2 million, exceeding analysts’ expectations of approximately $699 million. Subscriber growth, AI-driven engagement, specialty care and international expansion supported the performance. Management also raised its 2026 revenue outlook. Hims & Hers Q2 revenue beat offset by wider-than-expected loss
• Positive Sentiment: Needham raised its price target from $35 to $42 and maintained a Buy rating, indicating that some analysts believe current valuation reflects much of the near-term weakness and that investments could support longer-term growth.
• Neutral Sentiment: Hims plans to offer certain legally available compounded peptides in 2026. However, analysts cited by Reuters expect the new offering to contribute little revenue this year, making it more of a longer-term opportunity than an immediate catalyst. As Hims prepares for peptides launch, Wall Street cautious on prospects this year
• Negative Sentiment: The company reported a $0.37-per-share quarterly loss, substantially worse than the expected $0.05 loss. Gross-margin compression and negative free cash flow—partly tied to the shift toward branded GLP-1 weight-loss drugs, restructuring and international expansion—overshadowed the revenue beat and guidance increase. Hims & Hers shares slide as costly weight-loss push squeezes margins
• Negative Sentiment: Multiple law firms announced investigations into potential securities-law violations, fiduciary-duty breaches, data-sharing practices, billing and subscription-cancellation policies. The FTC and consumer plaintiffs have also pursued legal action. These announcements increase uncertainty around potential costs, liabilities and reputational damage, although they represent allegations rather than findings of wrongdoing. Berger Montague investigation
• Negative Sentiment: Wall Street remains cautious: Morgan Stanley highlighted pressure from gross margin and free cash flow, while Citi lowered its target to $33 and kept a Neutral rating. The stock’s decline reflects concern that higher revenue is not yet translating into sustainable earnings.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on HIMS shares. JPMorgan Chase & Co. dropped their price objective on Hims & Hers Health from $35.00 to $33.00 and set an “overweight” rating for the company in a research note on Tuesday, May 12th. Wall Street Zen lowered Hims & Hers Health from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. Canaccord Genuity Group raised their price target on Hims & Hers Health from $32.00 to $40.00 and gave the company a “buy” rating in a research report on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft raised their price target on Hims & Hers Health from $25.00 to $26.00 and gave the company a “hold” rating in a research report on Tuesday. Finally, Barclays lifted their price target on Hims & Hers Health from $29.00 to $39.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 17th. Four research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $32.43.

Insider Activity

In related news, Director David B. Wells bought 48,400 shares of the stock in a transaction on Tuesday, May 26th. The shares were purchased at an average price of $24.23 per share, for a total transaction of $1,172,732.00. Following the acquisition, the director owned 224,417 shares in the company, valued at $5,437,623.91. This represents a 27.50% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Patrick Harrison Carroll sold 23,726 shares of the firm’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $35.00, for a total value of $830,410.00. Following the transaction, the insider directly owned 181,861 shares of the company’s stock, valued at $6,365,135. The trade was a 11.54% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 83,126 shares of company stock worth $2,711,339. 11.76% of the stock is owned by corporate insiders.

Institutional Trading of Hims & Hers Health

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in Hims & Hers Health by 7.2% in the 4th quarter. Vanguard Group Inc. now owns 20,925,666 shares of the company’s stock valued at $679,456,000 after purchasing an additional 1,407,651 shares in the last quarter. State Street Corp boosted its stake in shares of Hims & Hers Health by 1.8% during the 4th quarter. State Street Corp now owns 7,305,525 shares of the company’s stock worth $237,210,000 after purchasing an additional 132,311 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Hims & Hers Health by 12.4% during the fourth quarter. Geode Capital Management LLC now owns 5,509,764 shares of the company’s stock worth $183,485,000 after buying an additional 608,950 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of Hims & Hers Health by 194.4% during the first quarter. Bank of America Corp DE now owns 4,357,672 shares of the company’s stock worth $90,465,000 after buying an additional 2,877,550 shares in the last quarter. Finally, Invesco Ltd. raised its position in shares of Hims & Hers Health by 62.7% in the third quarter. Invesco Ltd. now owns 4,152,409 shares of the company’s stock valued at $235,525,000 after buying an additional 1,600,004 shares during the last quarter. Institutional investors and hedge funds own 63.52% of the company’s stock.

Hims & Hers Health Trading Down 2.2%

The company has a debt-to-equity ratio of 2.18, a current ratio of 1.69 and a quick ratio of 1.56. The firm has a market cap of $6.90 billion, a price-to-earnings ratio of -47.35, a price-to-earnings-growth ratio of 85.86 and a beta of 2.40. The business’s 50-day moving average price is $32.06 and its two-hundred day moving average price is $26.08.

Hims & Hers Health Company Profile

Hims & Hers Health, Inc is a telehealth platform providing direct-to-consumer personal care products and virtual medical services in the United States. Operating under the Hims & Hers brand, the company offers an integrated digital experience that connects users with licensed healthcare providers, enabling online consultations and prescriptions for a range of conditions. Its telemedicine infrastructure supports both prescription medications and over-the-counter products, with home delivery to patients’ doorsteps.

The company’s product portfolio addresses key areas of men’s and women’s health, including hair loss treatments, sexual wellness therapies, skincare regimens and mental health support.