Hims & Hers Shares Face Mounting Selling Pressure

Hims & Hers US4330001060

The stock of telemedicine provider Hims & Hers is encountering significant headwinds. A seven-day losing streak has erased nearly $700 million in market capitalization. While some institutional investors are making substantial additions to their holdings, corporate insiders are offloading shares, and the company's premium valuation is raising concerns among market participants.

Trading at a price-to-earnings multiple of 58, Hims & Hers is considered one of the more expensively valued growth stocks. Its margins came under pressure during the 2025 fiscal year, prompting questions about the path to sustained profitability. From a technical analysis perspective, the equity has broken below key moving average support levels.

This stands in contrast to a robust operational performance for the third quarter of 2025. The company reported revenue climbing 49% to approximately $600 million, while its subscriber base grew 21% to nearly 2.5 million. Adjusted EBITDA surpassed $78 million.

A Divergence Between Insiders and Institutions

The trading activity of corporate insiders has been particularly notable. Over the past six months, executives have executed 63 separate sale transactions without recording a single purchase. Chief Executive Officer Andrew Dudum disposed of shares worth roughly $62.7 million, and Chief Financial Officer Oluyemi Okupe sold stakes valued at about $19.7 million.

Institutional investor behavior, however, presents a mixed picture. JPMorgan Chase increased its position by a substantial 549%, and now holds shares worth approximately $853 million. Other major firms, including Renaissance Technologies and T. Rowe Price, also meaningfully expanded their stakes. On the opposite side, SRS Investment Management exited its position entirely by selling four million shares.

Analyst Opinions Remain Sharply Divided

Market researchers are deeply split on the outlook for Hims & Hers. The spectrum of price targets is wide: BTIG maintains a bullish $85 target, while Canaccord Genuity sets its objective at $68. In a more cautious stance, Bank of America issues an "Underperform" rating with a $32 target. Barclays initiated coverage with a $48 target, and Truist Securities advises holding the stock with a $37 target.

The median price target sits at $48, which is notably above the current trading price. This broad range underscores the significant uncertainty and divergent expectations regarding the company's future trajectory. Amid this, Hims & Hers is proceeding with a $200 million investment in Ohio and continues its geographic expansion into Canada and the United Kingdom.