Why Hims & Hers Health (HIMS) Stock Is Falling Today
Shares of telehealth company Hims & Hers Health (NYSE:HIMS) fell 6.3% in the afternoon session after Cigna Group's Evernorth division introduced a monthly $200 price cap for weight-loss medications such as Wegovy and Zepbound, a move that could significantly disrupt pricing in the weight loss drug market.
For Hims & Hers, which offers both compounded Semaglutide and branded GLP-1 treatments, this introduces a direct competitive threat, particularly if Evernorth's pricing becomes a benchmark in the industry.
The shares closed the day at $53.52, down 7.7% from previous close.
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, it's free.
Hims & Hers Health's shares are extremely volatile and have had 94 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 16 days ago when the stock gained 20.2% on the news that the company reported strong first quarter 2025 results which significantly beat analysts' expectations on revenue, EPS, and EBITDA.
Sales more than doubled from the previous year driven by higher monthly spending per subscriber and a broader product mix tailored to personalized health needs. While subscriber growth slowed to 38% year over year, average revenue per user climbed over 50%, indicating deeper wallet share from existing customers and more engagement with premium offerings.
On the other hand, revenue guidance was softer than anticipated. Still, we think this was a decent quarter.
Hims & Hers Health is up 112% since the beginning of the year, but at $53.35 per share, it is still trading 22.4% 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 $5,340.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
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