Leadership Exodus at Hims & Hers Sparks Investor Concern

Hims & Hers US4330001060

While U.S. markets were quiet for the Thanksgiving holiday, fresh regulatory filings from telehealth provider Hims & Hers revealed significant turbulence behind the scenes. Corporate leaders have offloaded shares worth nearly $33 million over the past quarter, with CEO Andrew Dudum personally divesting almost $7 million in stock. This internal selling coincides with dramatic polarization among major institutional investors, creating a landscape of conflicting signals for the company's future.

Portfolio data released on November 27 exposes unusual disagreement among financial heavyweights, with two institutions implementing virtually opposite approaches.

In a striking vote of no confidence, DNB Asset Management AS has nearly completely exited its stake. The Norwegian asset manager liquidated 95% of its position, retaining just 5,635 shares valued at approximately $281,000. Such a drastic reduction suggests profound concerns about the company's prospects.

Conversely, Franklin Resources has dramatically increased its commitment. The investment firm expanded its holdings by 53.4%, acquiring an additional 248,038 shares. Franklin now controls 712,861 shares worth about $35.5 million, indicating strong belief in the company's long-term value.

Executive Team Liquidates Holdings

The scale of insider selling has raised particular alarm among market observers. Over the last three months, company executives disposed of 616,431 shares in total:

• CFO Oluyemi Okupe: Sold 145,000 shares on September 15 for $8.03 million (average price $55.35)
• CEO Andrew Dudum: Divested 128,127 shares on September 16 for $6.85 million (average price $53.48)
• Michael Chi: Liquidated 13,749 shares on September 17 for approximately $690,000

In what appears to be a response to these transactions, the board authorized a $250 million stock repurchase program on November 17. This initiative could remove roughly 3% of outstanding shares from the market.

Quarterly Results Fuel Market Division

The company's third-quarter 2025 financial performance provided ammunition for both bullish and bearish perspectives. Revenue surged an impressive 49.2% to $598.98 million, exceeding analyst expectations of $579 million. However, earnings per share disappointed at $0.06, falling short of the projected $0.09.

This divergence between robust revenue growth and weaker profitability has attracted short sellers. The short interest currently stands at a substantial 38.12%, ranking among the highest in the sector. This creates significant volatility potential, particularly if the buyback program forces short sellers to cover their positions.

Research Firms Reflect Market Uncertainty

Equity researchers mirror the divided sentiment among investors. While BTIG maintains an $85 price target and Canaccord Genuity projects $68, expressing optimistic outlooks, Bank of America ($32, "Underperform") and Truist ($37, "Hold") foresee considerable downside risk. The average price target across analysts sits at $45.27. With the next quarterly report anticipated for late February 2026, market unease is likely to persist.