Hims & Hers Health stock surges 21.11% as investors await Q2 earnings report amid legal challenges and expansion plans.

Hims & Hers Health's stock has risen 21.11% due to heightened investor interest and a significant increase in call option trading ahead of its upcoming earnings report. Despite challenges like declining core sales growth and litigation risks, Truist has raised its price target, reflecting a bullish sentiment. The company's strong online revenue and subscriber growth, as well as efforts to expand globally, have contributed to its recent performance. However, Hims & Hers is facing legal challenges following the termination of its partnership with Novo Nordisk.

Hims & Hers Health, Inc. (NYSE: HIMS) saw its stock rise by 21.11% amidst heightened investor interest and a surge in call option trading ahead of its upcoming earnings report. The company has been experiencing a significant increase in call option trading, which is often seen as a positive indicator of investor optimism [1].

Despite challenges such as declining core sales growth and ongoing litigation risks, Truist has raised its price target for HIMS, reflecting a bullish sentiment. The company's strong online revenue and subscriber growth, along with efforts to expand globally, have been key drivers of its recent performance [1].

However, Hims & Hers is facing legal challenges following the termination of its partnership with Novo Nordisk. A securities fraud class action lawsuit has been filed against the company, alleging that it made materially false and misleading statements and failed to disclose significant risks [2]. The lawsuit, filed in the United States District Court for the Northern District of California, alleges that the company promoted and sold illegitimate, knockoff versions of Wegovy, putting patient safety at risk and potentially leading to the termination of its collaboration with Novo Nordisk.

The legal challenges could pose a significant risk to Hims & Hers' operations and financial health. The company will need to navigate these challenges effectively to maintain investor confidence and ensure its long-term success.

References:
[1] https://www.marketbeat.com/instant-alerts/hims-hers-health-nysehims-stock-price-down-2-on-insider-selling-2025-07-24/
[2] https://www.marketscreener.com/news/hims-investor-alert-a-securities-fraud-class-action-lawsuit-has-been-filed-against-hims-hers-heal-ce7c5fdbd181f022