News
Hims & Hers Health (HIMS) Stock Trades Up, Here Is Why
What Happened?
Shares of telehealth company Hims & Hers Health (NYSE:HIMS) jumped 12.5% in the afternoon session after the company revealed it will offer Eli Lilly's weight-loss medications (Zepbound) on its platform, marking a significant expansion beyond its previous focus on lower-cost alternatives to Novo Nordisk's Wegovy. This move positioned the company to tap into the growing demand for weight loss solutions and attract a broader customer base. The company added, "As we look ahead, we plan to continue to expand our weight loss offering to deliver an even more holistic, personalized experience."
The shares closed the day at $31.09, up 5.2% from previous close.
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What The Market Is Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 82 moves greater than 5% over the last year. But moves this big are rare even for Hims & Hers Health and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 14 days ago when the stock dropped 8% on the news that the U.S. Food and Drug Administration raised concerns about unapproved GLP-1 drugs used for weight loss, including versions (compounded) prescribed by Hims & Hers. There had been growing market demand for weight loss drugs and they've evolved to be a significant driver of sales growth for manufacturers and distributors. The FDA's concerns could indicate tighter regulatory scrutiny, which restricts the ability of suppliers like Hims & Hers to get the affected versions to consumers.
Hims & Hers Health is up 22.6% since the beginning of the year, but at $30.90 per share, it is still trading 55% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $3,101.
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