Hims & Hers Health Stock up 4.9% Amid Net Insider Selling
HIMS shares rose 4.9% to $29.35 on September 21, 2026, trading well below the $45.30 fair value estimate despite ongoing losses.
Key points
- Hims & Hers Health shares rose 4.9% to $29.35, trading 35.2% below the $45.30 GuruFocus fair value estimate.
- The company has a GF Score of 77/100, driven by a 10/10 growth rating but offset by 4/10 scores in profitability and financial strength.
- Insiders sold a net $36.4 million in stock over the past 12 months, with $37.6 million in sales against only $1.2 million in purchases.
Hims & Hers Health Inc (HIMS) shares climbed 4.9% on September 21, 2026, to close at $29.35. The move brought the stock closer to its 52-week high of $65.30, though it remains significantly below that peak after a volatile year that saw the share price drop as low as $13.74.
The company remains unprofitable on a trailing twelve-month basis, rendering traditional price-to-earnings metrics inapplicable. However, the forward P/E ratio stands at 57.8x, reflecting market expectations for a future earnings recovery. This valuation sits above the five-year median P/E of 65.8x, indicating that investors are pricing in substantial growth despite current cash-flow negative status.
Valuation Metrics Indicate Undervalued Position
GuruFocus data suggests the stock is undervalued, with a calculated fair value of $45.30. This implies a potential upside of 35.2% from the current price of $29.35. The GF Score™ of 77 out of 100 places Hims & Hers Health in the above-average performance tier relative to its peers, driven primarily by a perfect 10/10 rating in the growth category.
Conversely, the company scores low in financial strength and profitability, both rated 4/10. This disparity highlights a value trap risk, where the attractive valuation margin may mask underlying fundamental weaknesses. Investors must weigh the strong growth trajectory against the lack of current earnings and negative cash flow, which complicate traditional earnings-based valuation models.
Insider Sales Outweigh Institutional Buys
Insider activity over the past 12 months shows a net selling position of $36.4 million. Insiders purchased $1.2 million in stock while selling $37.6 million, a pattern that often signals caution from those closest to the company’s operations. This net outflow contrasts with mixed sentiment among institutional investors, where four gurus hold positions but have shown divergent actions, with three adding and two trimming holdings.
The divergence between the high growth score and the net insider selling creates a complex investment profile. While the GF Score™ of 77 suggests robust momentum and expansion opportunities, the substantial insider disposals raise questions about near-term confidence. The current market price reflects a balance between optimistic forward-looking multiples and the reality of ongoing operational losses.
