What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) fell 6.5% in the afternoon session after a Bank of America report highlighted weakening order trends and a lowered fourth-quarter revenue forecast.
The bank's analysis noted that orders were down 16% year-over-year in September, raising concerns about the company's growth trajectory into the fourth quarter. As a result, BofA Securities lowered its fourth-quarter revenue forecast for Hims & Hers to $590 million, which was 6.5% below the consensus estimate. The report pointed to several challenges, including slowing core growth, increased competition, and possible pressure on customer conversion rates.
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.
What Is The Market Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 99 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 8 days ago when the stock gained 3% after news of a new government prescription drug policy and a landmark deal with Pfizer eased investor concerns over stricter pricing regulations.
The pharmaceutical and biotech sectors rallied for a second consecutive day following the announcement of a direct-to-consumer prescription drug selling website. A key driver for the optimism is a deal between Pfizer and the administration, allowing the company to avoid potential tariffs by reducing drug prices. This outcome is seen as a relief for the industry, which had braced for more severe measures. The move has reduced uncertainty in the sector, with other major players like Eli Lilly reportedly in negotiations for a similar agreement, signaling a potentially favorable new landscape for drugmakers.
Hims & Hers Health is up 119% since the beginning of the year, but at $55.08 per share, it is still trading 19.9% 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 $5,296.
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