Bought $40,000 of Hims & Hers (HIMS) Stock on a YOLO – Is it Time to Sell?

Key Points

Hims & Hers is an exciting stock in the telehealth sector, but as a growth stock, it’s not for the faint of heart. The digital health landscape is evolving, and investors might need to adapt.
If you jumped on the HIMS bandwagon and are considering unloading your shares, consider the potential risk and rewards before doing so.
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Hims & Hers (NYSE: HIMS) stock, a prominent player in the booming telehealth sector, has undeniably captured significant investor attention recently. Perhaps you, like many others, have been caught up in the enthusiasm, making a substantial investment in this growth stock. After scooping up $40,000 worth of Hims & Hers stock, you would hold approximately 727 shares in your portfolio based on the latest share price. Perhaps you are contemplating whether this online healthcare bet has run its course. You’re certainly not alone, as investors have been actively entering and exiting the stock, creating a revolving door of ownership.

Contents

Key Points Fundamentals and Analyst Views Risk vs. Reward “The Next NVIDIA” Could Change Your Life

Hims & Hers is a high-profile provider in the digital health space, which works both for and against the stock. While its partnership lineup might drum up short-term excitement, there’s also a risk that the company could be overreaching in a competitive and challenging field. The digital health segment is becoming increasingly crowded, with new public market entrants like Omada Health, while Hims & Hers has been pivoting toward significant international growth, a strategy that is still unfolding.

As of early June, HIMS stock is hovering around $55 per share, representing a roughly 33% decline from its all-time high reached in early 2025. Indeed, Hims & Hers has subjected investors to a genuine roller coaster ride, marked by impressive earnings highs and periods of decline often linked to aggressive expansion strategies. While the decision to cash out or hold HIMS for the long term rests with you, let’s explore the key risks and rewards that appear to be on the horizon for Hims & Hers investors.

Fundamentals and Analyst Views

In the first quarter of 2025, Hims & Hers reported an impressive more than doubling of revenue to $586 million. The company expanded its subscriber base by an impressive 38% year-over-year. This clear momentum recently led Hims & Hers to lift its long-term revenue target to a minimum of $6.5 billion by 2030, alongside $1.3 billion in adjusted EBITDA.

Hims & Hers also successfully increased its convertible senior notes offering, attracting a robust $1 billion, more than twice the original size, due to strong investor demand for these hybrid debt instruments. The company plans to direct these proceeds towards AI-powered healthcare innovations and a significant expansion of its global footprint.

On that note, Hims recently made headlines with its cash acquisition of Zava, a leading European digital health platform. Additionally, Hims & Hers recently forged a partnership with industry stalwart Novo Nordisk, a development that gives it access to sell popular weight loss drug Wegovy and has likely made short-sellers in HIMS stock nervous. Short interest remains notably high, hovering at approximately 62.34 million shares, representing about 34% of the stock’s float. This record high suggests a strong bearish sentiment among a significant portion of investors.

Among analysts, BofA maintains a “sell” rating with a $30 price target, citing concerns about a slowdown in U.S. growth and uncertainties surrounding the blockbuster Zava deal. Analysts at TD Cowen are slightly more optimistic, issuing a “hold” rating with a $38 price target, though they too express apprehension about the European acquisition.

Truist analysts advise investors to “hold” the stock, suggesting a fair price of $45 per share, while Citi remains unconvinced, recommending a “sell” with a $30 price target amid an intensifying and fiercely competitive weight loss drug landscape. Conversely, Needham analysts are decidedly bullish, recently raising their price target on HIMS stock by $4 to $65 per share with a “buy” rating, confident in the company’s momentum fueled by increasing subscriber numbers and innovative weight loss solutions.

Risk vs. Reward

Clearly, you’ve demonstrated an appetite for risk by holding Hims & Hers stock for this long, so a complete exit from your position might seem extreme. However, it’s important to acknowledge that Hims & Hers stock is not for the faint of heart. While Hims & Hers has been growing access to popular drugs, including Wegovy for weight loss, competition is fierce, prompting the company to look overseas for growth through an ambitious expansion plan.

While some Wall Street analysts seem to agree that the company’s ambitions might be overreaching, others remain firmly bullish on its long-term potential. Given the current dynamics, a balanced approach might be to consider selling a portion of your HIMS stock, assuming you are not doing so at a loss. Hold the remaining position for a specific amount of time. If you don’t observe the price appreciation you’re seeking, it might then be an opportune time to reassess your position and consider a more complete exit.