Shares of Hims & Hers (HIMS) have tumbled more than 20% since the telehealth company’s second-quarter earnings revealed a sharp slowdown in its core business — and now its CEO has executed the largest insider sale in the company’s history.
CEO Andrew Dudum sold $33.4 million worth of shares in an open-market transaction, according to company tracker Hims House. The sale, which was not part of a pre-arranged trading plan, is the biggest open-market disposal ever recorded for Hims & Hers.
Insider sales don’t always signal trouble — executives often sell stock for reasons like portfolio diversification or tax planning — but the timing of Dudum’s move couldn’t be worse.
Hims moved into damage-control mode after news of Dudum’s sale broke, saying the transactions were “indirectly associated” with the CEO and made for “tax and philanthropic purposes.”
However, biotech analyst Adam May, a long-time Hims critic, said Dudum’s sale likely represents opportunistic profit-taking — a move that aligns with the bear case.
“The core business acceleration is slowing badly, GLP1s won’t save their growth forever [...] and upcoming vertical launches are going to be massive challenges compared to stuff like ED and hair loss,” May wrote, warning that future products may target far smaller addressable markets.
In addition to insider sales reports, investor sentiment toward Hims & Hers has been shaken by a sequential revenue decline and growing skepticism over whether the company can hit its full-year revenue targets.
Adding to the concerns, Investors Observer reported that App Store data show Hims’ new customer growth is also under pressure, with downloads falling to a 52-week low in mid-July.
Hims has been down this road before
While Hims & Hers’ recent 20% drop may look steep compared to the broader market, such swings are nothing new for its investors.
The stock’s implied volatility (IV) percentile rank sits above 77, signaling that traders expect large price moves ahead, according to market data.
HIMS shares saw an even sharper correction in June after partner Novo Nordisk ended its collaboration with the telehealth firm. But the stock quickly rebounded, rallying into the second-quarter earnings release.
For active traders, these extreme fluctuations have been a double-edged sword — but also a source of outsized gains.
HIMS shares have surged roughly 100% year-to-date and more than 200% over the past 12 months, according to Yahoo Finance data. That momentum has propelled the company’s market capitalization to $11.3 billion.
Despite mounting growth challenges, Hims is pushing aggressively into international markets. It plans to enter Canada’s weight-loss drug market early next year and has completed its acquisition of European telehealth platform Zeva, which could add up to $50 million in revenue in the second half of the year.
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