Key Takeaways
- David Wells, a Hims & Hers board member, acquired 48,400 shares worth approximately $1.2 million — marking his first purchase on the open market in almost five years.
- Following the disclosure, HIMS stock surged roughly 6.8% to reach $25.46.
- Year-to-date, HIMS has declined over 21% in 2026, significantly lagging the S&P 500’s 9.9% advance.
- Shares plummeted more than 14% in early May following disappointing first-quarter earnings results.
- The telehealth company is transitioning away from compounded GLP-1 medications as pharmaceutical giants Novo Nordisk and Eli Lilly restore their market dominance.
David Wells, a member of the Hims & Hers Health (HIMS) board of directors, acquired 48,400 shares on Tuesday, paying between $24.19 and $24.25 per share for a combined investment of approximately $1.2 million. This transaction increased his holdings to 224,400 shares and represented his first purchase on the open market since August 2021.
Hims & Hers Health, Inc., HIMS
The market responded enthusiastically. HIMS stock climbed approximately 6.8% to $25.46 on the trading day following the filing, with market participants interpreting the insider transaction as a signal of confidence in the company’s prospects.
Wells, who previously held the position of Chief Financial Officer at Netflix and joined the Hims board in 2020, had exclusively been selling shares in recent periods — disposing of 260,000 shares in February 2024 and an additional 40,000 in November of that year. His decision to switch from seller to buyer after nearly half a decade caught the attention of market observers.
What’s Behind HIMS’s 2026 Decline?
Shares of HIMS have tumbled more than 21% year-to-date, a stark contrast to the S&P 500’s 9.9% increase during the same timeframe. This underperformance highlights the challenges facing the telehealth provider.
Earlier this month, the stock experienced a sharp decline of over 14% following the release of first-quarter financial results that fell short of analyst forecasts. The company reported a quarterly loss alongside revenue figures that disappointed Wall Street — a combination that rattled investor confidence.
The primary source of investor anxiety centers on the company’s GLP-1 weight-loss medication business. While major pharmaceutical manufacturers Novo Nordisk and Eli Lilly faced supply constraints for their branded weight-loss drugs, Hims capitalized on the opportunity by providing more affordable compounded alternatives. However, as supply chains have normalized, these pharmaceutical powerhouses are recapturing their lost market position.
Strategic Shift in GLP-1 Strategy
In March, Hims announced a partnership to distribute Novo Nordisk’s branded weight-loss medication through its digital platform, effectively replacing the compounded versions it had previously offered. The following month, the company expanded its model by enabling healthcare providers to issue prescriptions that can be filled through independent pharmacies, including LillyDirect.
This represents a fundamental strategic transformation. Compounded GLP-1 medications had emerged as a critical component of Hims’s value proposition to both consumers and the investment community. The company now confronts the challenge of sustaining revenue growth while stepping away from this business segment.
Separately, Wells was granted 957 restricted stock units on May 20 as part of routine director compensation.
As of Wednesday’s market close, HIMS was priced at $25.46, reflecting a 6.8% gain on the day the insider purchase was disclosed.
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