Is it an opportunistic time to buy HIMS?


Aime
The opportunistic time to buy HIMS might not be currently. Here's why:
- Financial Performance: Hims & Hers Health (HIMS) has shown strong revenue growth with a 51.82% increase to $315.65 million by Q2 20241. However, the net income has significantly declined with a 285.79% growth rate to $13.3 million1, and the diluted EPS has decreased by 56.45%2. This indicates a concerning trend in profitability.
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HIMS Total Revenue (FY), Net Income (FY)...
- Market Sentiment: The stock's P/E ratio is negative at -2131.093, which typically suggests that investors expect further losses in the future. However, the P/S ratio is 4.223, indicating that the market is willing to pay a premium for the company's sales. The RSI is 65.354, which is close to the overbought territory and suggests that the stock may be overextended.
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HIMS Trend
- Technical Indicators: The stock is currently trading above its 5-Day, 10-Day, and 20-Day moving averages5, which could be seen as a bullish signal. However, it is below its 30-Day, 50-Day, and 60-Day moving averages6, and the 120-Day, 200-Day, and 250-Day moving averages7, which could indicate a bearish outlook in the longer term.
HIMS Trend
- Analyst Ratings: The consensus rating is a "Strong Buy" with an average price target of $22.178, and the stock has been rated as "Moderate Buy" by analysts with an average 1-year target price of $20.219. This suggests that analysts are optimistic about the stock's future performance.
- Recent Developments: The company has seen significant insider transactions, with the Chief Commercial Officer selling a substantial amount of stock10, which could be interpreted as a lack of confidence in the company's short-term prospects.
- Market Position: The company has been experiencing significant growth, but it faces regulatory challenges and the potential impact of FDA decisions10. The market is also cautious due to the high P/E ratio and the recent insider selling.
In conclusion, while there are some positive indicators, such as strong revenue growth and a "Strong Buy" consensus rating, the negative trends in profitability, the high and negative P/E ratio, and the recent insider selling suggest that it might not be an opportune time to buy HIMS. Investors should carefully consider these factors and their own investment strategy before making a decision.
Source:
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HIMS Revenue Growth Rate, Net Income Growth Rate, Diluted EPS Growth Rate
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