What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) fell 6.4% in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week.
The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
The shares closed the day at $42.17, down 6.5% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hims & Hers Health? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 94 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 7 days ago when the stock dropped 3.6% on the news that the disclosure of significant stock sales by top executives, including CEO Andrew Dudum. According to SEC filings, CEO Andrew Dudum sold 660,000 shares for a total of approximately $33.4 million. The selling was not limited to the CEO, as Chief Medical Officer Patrick Carroll also sold 60,000 shares valued at around $3.2 million, while the company's chief commercial officer also recently parted with shares. Such significant stock sales by a company's top leadership can raise concerns among investors about the firm's future prospects. These transactions come at a challenging time for the telehealth company, which has recently faced legal pressure from drugmaker Novo Nordisk and a class-action lawsuit related to its compounded weight-loss drug offerings.
Hims & Hers Health is up 66.8% since the beginning of the year, but at $42.03 per share, it is still trading 38.9% 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 $3,991.
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