Anja Manuel, a director at Hims & Hers Health (HIMS), recently bought 5,000 shares. The buy is a new position for the director, and came to a total cost of $132,260.
It’s also the first insider buy at the company since May, when another director bought 110,000 shares to build an initial stake at a cost of $1.9 million. Otherwise, company insiders have largely been sellers of shares, mostly following the exercise of stock options.
Overall, Hims & Hers insiders own 11.4% of shares.
The telehealth platform is up 165% over the past year, in part due to soaring sales. Revenues are up over 77%.
Plus, HIMS just turned a profit, with shares trading at about 50 times earnings. While that’s a high level, the higher growth indicates that the company is still priced for fast growth ahead.
Action to take: Shares just saw a pullback on news of a potential competitor with Amazon (AMZN), which could create a good entry point for speculative traders.
Amazon’s track record on health care endeavors isn’t too strong, and HIMS has already built a solid brand. If anything, it’s likely that HIMS could be a buyout candidate for a larger healthcare player.
For traders, the January 2025 $25 calls, last trading for about $2.60, could see mid-double-digit returns from a trend higher into the start of next year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
