GET DAILY SIGNALSWhy Is Hims & Hers Health (HIMS) Stock Down -12.69% Today?
Key Takeaways
- Hims & Hers Health (HIMS) shares fell 12.69% to $20.03, down $2.91 from Monday's close of $22.94, on heavy turnover.
- The trigger was the third-quarter report released after Monday's close: a surprise net loss, revenue just below consensus, and a fresh cut to profit guidance.
- Fourth-quarter revenue guidance of $875 million–$895 million landed roughly 7% below analyst expectations, while full-year adjusted EBITDA guidance was reduced for the third time this year.
- Subscribers fell about 100,000 sequentially to nearly 2.79 million — the company's first sequential decline — as marketing spend was deliberately pulled back.
- Analysts cut price targets across the board on Tuesday morning, deepening the selling once regular trading opened.
- Selling was company-specific: major U.S. indices were little changed, leaving no macro cushion for the stock.
- News Significance Score: 63/100 — A third guidance cut and a surprise quarterly loss met a move about 3.5x the stock's normal swing.
- Traders are now watching margin recovery, the Q4 subscriber trend, the late-November Peptides+ launch, and the reset of the weight-loss lineup in early 2027.
- For deeper research, explore the Price Targets, Earnings, and Forecast pages.
- Compare this setup with the market's strongest automated strategies on Trending AI Robots.
The Move at a Glance
Hims & Hers Health Inc. (HIMS) is a direct-to-consumer telehealth platform that sells subscription access to prescription treatments for weight loss, sexual health, hair loss, dermatology and mental health, increasingly leaning on branded GLP-1 obesity drugs and overseas expansion. Shares were trading at $20.03 at the latest check, a decline of $2.91, or 12.69%, from the prior session's close of $22.94. The direction is unambiguously lower, and the immediate cause is the company's third-quarter earnings release, which hit the wires after Monday's closing bell and was followed by a wave of analyst target reductions before Tuesday's open.
A Surprise Loss and a Third Guidance Cut
Revenue rose 49% year over year to $890.4 million, marking a second consecutive quarter of acceleration but finishing just shy of the roughly $893 million consensus. The bottom line was the problem: Hims & Hers swung to a net loss of $33.0 million, or $0.14 per share, from net income of $15.8 million a year earlier, against expectations for a profit of about $0.06 per share.
Gross margin collapsed to 57% from 74%, reflecting the deliberate mix shift toward lower-margin branded weight-loss medications and fast-growing international revenue, which carries structurally thinner economics. Management then guided fourth-quarter revenue to $875 million–$895 million versus consensus near $953 million, and cut full-year adjusted EBITDA guidance to $257 million–$277 million from $275 million–$325 million — the third reduction this year. The full-year revenue range narrowed to $3.13 billion–$3.15 billion, below the $3.21 billion consensus midpoint. Growth, in other words, is being bought rather than earned, and the market repriced the profitability story accordingly.
Subscribers Shrink and Margins Compress
Subscribers rose 13% year over year to nearly 2.79 million, but that marked a sequential decline of roughly 100,000 and fell well short of expectations near 3.04 million. Management framed the drop as intentional, citing reduced U.S. weight-loss marketing ahead of planned platform expansions and a product-lineup reset. Monthly revenue per average subscriber climbed 30% to $105, evidence that the remaining base is spending more, but investors focused on the first sequential subscriber decline in the company's history as a public issuer.
Analyst Targets Cut Across the Street
Sell-side revisions arrived within hours of the release and reinforced the downside. JPMorgan lowered its target to $24 from $32 with a Neutral rating, Leerink cut to $24 from $30, and Needham trimmed to $32 from $42 while keeping a Buy. Truist reiterated a Hold. The consensus stance remains Hold, and the breadth of the cuts mattered as much as the individual numbers: six analysts have revised earnings estimates lower recently, and the resets removed much of the near-term valuation support the stock had built after its Eli Lilly (LLY) distribution agreement last week, which had lifted shares 8% on Friday.
Market Context and Trading Activity
Volume has been exceptional. Monday's session traded roughly 50 million shares — about 4.4 times the three-month average of some 11.4 million — and turnover was heavy again from Tuesday's opening bell, with the stock gapping down more than 10% before extending losses. The move was not a sector event: the S&P 500 and Nasdaq were essentially flat, so HIMS diverged sharply from both benchmarks and from the broad healthcare tape.
Technically, the decline is decisive. Shares sit well below their 50-day and 200-day moving averages, near $28.31 and $26.91 respectively, and at their lowest price since mid-May, extending a year-to-date loss to roughly 38%. The stock is now down more than half from its summer highs, and the gap lower left little in the way of nearby support.
News Significance Score
The score runs from 0, meaning no meaningful news and a price move that is normal for the stock, to 100, meaning transformative news and an extreme, rare move. Hims & Hers scores 63 out of 100.
The verified news was substantial: a surprise quarterly loss, a third cut to profit guidance this year, a sequential subscriber decline and a fourth-quarter revenue outlook roughly 7% below consensus, all material relative to a company valued near $4.7 billion. The price move was also uncommon — more than triple the stock's typical daily swing of about 3.6%, and only one session in the past 69 traded further. Strong news and an outsized but not unprecedented reaction combine into that score.
What Comes Next for HIMS
Attention shifts to whether margins stabilize. Management has guided to a fourth quarter with revenue roughly flat sequentially and an EBITDA margin near 9%, and it is pacing marketing spend ahead of the late-November launch of Peptides+ and multi-month subscriptions arriving before January. The company expects another quarter of subscriber headwinds as it resets its U.S. weight-loss lineup in early 2027, and international markets — the U.K., Germany and Australia — will be scrutinized for both growth and profitability.
Risks cut both ways. Ongoing FTC litigation, regulatory uncertainty around compounded peptides, continued GAAP losses and $1.37 billion of convertible notes all weigh on the story, while the expanded Lilly and Novo Nordisk assortment, testosterone therapy and a $1 billion international run rate targeted for 2027 provide the bull case. The fourth-quarter report, expected in late February, is the next major test.
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
HIMS in +5.63% Uptrend, rising 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 RSI Indicator entered the oversold zone -- be on the watch for HIMS's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 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 64 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 78%.
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 10 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 77%.
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 81%.
The Aroon Indicator for HIMS entered a downward trend on November 10, 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 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 79 (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 85 (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 worse 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.
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