GET DAILY SIGNALSWhy Is Hims & Hers Health (HIMS) Stock Down -11.29% Today?
Key Takeaways
- Down 11.29%: HIMS shares fell to $20.35 in Tuesday's session, a sharp drop from the prior close of $22.94.
- Primary catalyst: A disappointing third-quarter earnings report that swung to a surprise net loss and included a cut to full-year profit guidance.
- Secondary drivers: A collapse in gross margin from 74% to 57%, plus the company's first sequential subscriber decline.
- Broader context: Major indices were little changed, meaning the decline was company-specific rather than macro-driven.
- What to watch: Fourth-quarter execution, the weight-loss product lineup reset planned for early 2027, and management's path back to profitability.
- For more detail on Price Targets, Earnings, and Forecast, explore Tickeron's dedicated pages.
- Curious how automated strategies are navigating this volatility? Explore Trending AI Robots.
Opening Summary
Hims & Hers Health, Inc. (HIMS), the direct-to-consumer telehealth platform known for weight-loss, sexual health, hair loss, and dermatology treatments, is down 11.29% on Tuesday. The stock was trading near $20.35, compared with Monday's closing price of $22.94. The selloff extends losses that began after the company reported third-quarter results following Monday's close, revealing an unexpected net loss, significant margin compression, and reduced forward guidance.
Earnings-Driven Move: A Surprise Loss and Lower Guidance
The dominant driver behind Tuesday's decline is the company's third-quarter report. Revenue rose 49% year over year to $890.4 million, but that figure narrowly missed consensus estimates near $893 million. More damaging, HIMS swung to a GAAP net loss of $33 million, or $0.14 per share, versus net income of $15.8 million a year earlier and analyst expectations for a modest profit of about $0.06 per share.
Investors also reacted to lowered guidance. The company cut its full-year 2026 adjusted EBITDA forecast to a range of $257 million to $277 million, down from $275 million to $325 million, marking the third such reduction this year. Full-year revenue guidance was narrowed to $3.13 billion to $3.15 billion, with a midpoint below Wall Street estimates, and fourth-quarter revenue guidance of $875 million to $895 million fell short of consensus expectations near $955 million.
Margin Compression and the Branded-Drug Pivot
A central concern for the market is the rapid deterioration in profitability. Gross margin fell to 57% from 74% a year ago, reflecting a deliberate shift away from higher-margin compounded medications toward lower-margin, FDA-approved branded weight-loss drugs, including partnerships with NVO (Novo Nordisk) and LLY (Eli Lilly). Aggressive international expansion, including the Eucalyptus acquisition, further pressured margins. While this strategy accelerates revenue growth, it meaningfully dilutes the economics of each sale, and investors are signaling they want a clearer path back to profitability.
First Subscriber Decline Raises Engagement Concerns
Adding to the negative tone, the company reported its first sequential decline in subscribers, with the base falling by roughly 100,000 to nearly 2.8 million, even as subscribers still grew 13% year over year. Management attributed the decline partly to a deliberate pullback in U.S. weight-loss marketing ahead of a planned product-lineup reset in early 2027. Monthly revenue per subscriber climbed 30% to $105, but the shrinking base, combined with softer margins, complicates the growth narrative that has underpinned the stock.
Market Context and Trading Activity
The move is decidedly company-specific. Broader equity indices were roughly flat on Tuesday, offering no macro cushion for the decline. Trading volume was elevated as investors digested the report, and the stock's slide follows a choppy stretch that included a sharp pre-earnings de-risking on Monday amid concerns over branded GLP-1 margins, softer weight-loss billings, and elevated short interest. Technical support levels have broken decisively, with the shares now trading well below their recent range and down sharply from their 52-week high.
What Comes Next for HIMS
The focus now shifts to whether HIMS can stabilize margins while sustaining its revenue momentum. Investors will watch fourth-quarter results closely for evidence that the branded-drug and international pivots are translating into durable, profitable growth. Key risks include further margin erosion from the weight-loss product reset, integration challenges from recent acquisitions, ongoing litigation overhangs, and the possibility of additional guidance adjustments. On the positive side, the company retains strong revenue growth, rising revenue per subscriber, and recently added Stanford neuroscientist Andrew Huberman to its board, signaling an emphasis on expanding its clinical and wellness offerings.
Trending AI Robots
Tickeron offers hundreds of AI-powered trading bots covering thousands of tickers, but only the strongest performers under current market conditions are featured in its curated Trending AI Robots section. These bots vary by strategy, timeframe, performance metrics, and traded symbols, giving traders a range of automated approaches to consider. Explore the section to see which strategies are currently leading the market.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HIMS in +5.63% Uptrend, growing for three consecutive days on November 04, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where HIMS advanced for three days, in 240 of 279 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
HIMS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HIMS as a result. In 66 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 80%.
The Moving Average Convergence Divergence Histogram (MACD) for HIMS turned negative on October 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 36 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
HIMS moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for HIMS crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 85%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HIMS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 82%.
The Aroon Indicator for HIMS entered a downward trend on November 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 62 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (18.719) is normal, around the industry mean (6.379). P/E Ratio (-41.935) is within average values for comparable stocks, (0.548). Projected Growth (PEG Ratio) (2.624) is also within normal values, averaging (2.202). Dividend Yield (0.000) settles around the average of (0.062) among similar stocks. P/S Ratio (2.686) is also within normal values, averaging (183.387).
The Tickeron Price Growth Rating for this company is 73 (best 1 - 100 worst), indicating slightly worse than average price growth. HIMS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 79 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HIMS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a company, which is involved in real estate investment trusts
Industry PharmaceuticalsGeneric
Advertisement