Harrison Patrick Carroll, Chief Medical Officer at Hims & Hers Health HIMS, disclosed an insider sell on November 7, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Carroll executed a sale of 15,000 shares of Hims & Hers Health with a total value of $331,093.

Hims & Hers Health shares are trading up 0.17% at $23.46 at the time of this writing on Friday morning.

All You Need to Know About Hims & Hers Health

Hims & Hers Health Inc is a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals, enabling them to access high-quality medical care for numerous conditions related to mental health, sexual health, dermatology, primary care, and more.

A Deep Dive into Hims & Hers Health’s Financials

Revenue Growth: Hims & Hers Health’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 77.13%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 79.16%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Hims & Hers Health’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.35.

Debt Management: Hims & Hers Health’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.03.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 53.68 is lower than the industry average, implying a discounted valuation for Hims & Hers Health’s stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.33, Hims & Hers Health’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Hims & Hers Health’s EV/EBITDA ratio stands at 86.9, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Uncovering the Importance of Insider Activity

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Hims & Hers Health’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.