Hims & Hers Stock Gains Momentum Amid Strategic Shifts and Novo Nordisk Snub

Hims & Hers US4330001060

Shares of telehealth provider Hims & Hers Health have demonstrated unexpected resilience in early 2026. Despite the company's notable absence from a newly announced distribution network for a key weight-loss drug, its stock price has posted significant gains. This investor confidence appears rooted in the firm's diversification efforts, though recent stock sales by a top executive introduce a note of caution.

Adding complexity to the investment thesis, Chief Financial Officer Oluyemi Okupe sold shares worth over $300,000 on January 5. This transaction reduced his holdings by approximately 9%. Market observers often scrutinize such insider activity, as consistent selling by executives can imply doubts about near-term price appreciation. For Okupe, this was part of a pattern, following significant sales also executed in October, November, and December of the previous year.

Exclusion from a Major Pharmaceutical Rollout

The positive share performance comes even as Hims & Hers was left off a crucial partner list. Danish pharmaceutical giant Novo Nordisk announced on Monday that the oral version of its weight-loss medication, Wegovy, is now widely available in the United States. The distribution network includes major players like CVS Health, Costco, and GoodRx, but conspicuously excludes Hims & Hers.

Analysts at Citi interpret this exclusion as evidence of ongoing strategic disagreements between the companies. The conflict likely centers on Hims & Hers' strategy of offering "compounded" semaglutide medications. In response, Citi reaffirmed its "Sell" rating on the stock, maintaining a $30 price target. The investment bank warned that broader availability of the branded oral tablets could pressure Hims & Hers' GLP-1 business throughout the year.

A Broader Strategy Beyond Weight Management

The company's leadership is actively working to reduce reliance on the weight-loss segment alone, pursuing expansion across several fronts:

• Geographic Growth: Launching its weight-management program in the United Kingdom and entering the Canadian market through the acquisition of the Livewell platform.
• Technology Acquisition: A planned purchase of YourBio Health aims to leverage its proprietary technology for painless blood collection.
• Diagnostic Services: The introduction of "Hims Labs" provides comprehensive biomarker testing focused on areas like heart health and hormones.

Divergent Analyst Views and Technical Positioning

Wall Street remains divided on the equity's valuation. Bullish analysts, such as those at BTIG Research, have issued price targets as high as $85. More skeptical voices, however, see fair value in the $30 to $32 range.

From a technical perspective, the share price has recently stabilized. Closing at $35.46 on Wednesday, the stock trades above its 50-day moving average of $32.58. It remains, however, far below its 52-week high of over $66.

Looking Ahead

The next major catalyst for investors is scheduled for early March 2026, when the company reports fourth-quarter results. Analysts anticipate year-over-year revenue growth of around 28%. Key factors will be whether a $250 million share repurchase program authorized in November, coupled with long-term growth targets extending to 2030, can sustain investor confidence amidst persistent competitive pressures.