Shares of Hims & Hers Health (NYSE: HIMS) fell 9% on Thursday after Chief Operating Officer Melissa Baird sold $910,687 worth of company stock.
According to a recent SEC filing, Baird sold a total of 33,337 shares of Class A Common Stock on April 9, at prices between $25.82 and $29.23 per share. In addition to the stock sale, Baird exercised options to purchase the same number of shares at $1.75 each, totaling $58,339. Following these transactions, Baird retains 805,083 shares directly in the company.
The stock moves were made under a Rule 10b5-1 trading plan, which Baird initiated on November 26, 2024.
The development comes after Hims & Hers Health (NYSE: HIMS) announced the expansion of its pharmaceutical offerings to include Eli Lilly’s (NYSE: LLY) diabetes and weight-loss drug, Zepbound, and generic versions of liraglutide. The announcement has sparked mixed reactions from analysts.
Truist Securities maintained a Hold rating and set a $39.00 price target, noting that while the new products could attract more users, they may not significantly boost revenue. Leerink Partners also kept a Market Perform rating with a $40.00 target, citing concerns over the high cost of Zepbound potentially limiting demand.
However, BofA Securities reiterated its Underperform rating with a $22.00 target, noting that the margins on branded drugs like Zepbound are lower than Hims & Hers’ typical gross margins. The analysts believe the decision to offer Zepbound may be more about expanding consumer choice than driving major sales growth.
