On October 4, 2023, Melissa Baird, the COO of Hims & Hers Health Inc (HIMS, Financial), sold 18,266 shares of the company. This move is part of a series of transactions made by the insider over the past year, which have seen Baird sell a total of 244,576 shares and purchase none.
Hims & Hers Health Inc is a direct-to-consumer health company that provides a range of health products and services. The company's mission is to eliminate stigmas and make it easier for people to access care and treatment for a wide range of conditions. It's known for its modern approach to health and wellness, and its commitment to providing high-quality, personalized, and affordable care.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 53 insider sells and no insider buys. This trend is illustrated in the following chart:
The relationship between insider transactions and the stock price is complex. While insider selling can sometimes be a bearish signal, it's important to consider the context. In this case, the insider has been selling shares consistently over the past year, which could suggest a personal financial strategy rather than a lack of confidence in the company.
On the day of the insider's recent sell, shares of Hims & Hers Health Inc were trading at $6.25, giving the company a market cap of $1.308 billion. Despite the insider's sell-off, the stock appears to be undervalued according to the GuruFocus Value. With a price of $6.25 and a GuruFocus Value of $11.30, the stock has a price-to-GF-Value ratio of 0.55, indicating that it is significantly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It's calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell-off may raise some eyebrows, the stock's undervaluation and the company's strong fundamentals suggest that Hims & Hers Health Inc remains a compelling investment opportunity.
