HIMS Should I Buy
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Hims & Hers Health Inc. is not a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock is facing significant legal and regulatory challenges, declining financial performance, bearish technical indicators, and negative sentiment from analysts. The lack of strong positive catalysts and the absence of proprietary trading signals further support this conclusion.
The technical indicators are bearish. The MACD is negatively expanding (-1.051), RSI is extremely oversold (5.205), and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels (S1: 17.009, S2: 13.553), indicating further downside potential.
Hedge funds have increased their buying activity by 211.82% over the last quarter, which could indicate some institutional confidence.
The company is under regulatory scrutiny from the FDA and DOJ, facing lawsuits from Novo Nordisk, and has stopped offering its oral semaglutide product. Analysts have significantly lowered price targets, citing legal risks and revenue challenges. The stock has dropped 11% recently, and the broader market sentiment is negative.
In Q3 2025, revenue increased by 49.16% YoY to $598.98M, but net income dropped by 79.13% YoY to $15.77M. EPS declined by 81.25% to $0.06, and gross margin fell to 73.8%, down 6.77% YoY. The financial performance reflects declining profitability and margin compression.
Analysts have a negative outlook on the stock. Deutsche Bank, TD Cowen, BofA, and Citi have all lowered price targets significantly, with most maintaining Hold, Underperform, or Sell ratings. Concerns center around legal risks, regulatory scrutiny, and the sustainability of the company's GLP-1 business model.
