Hims & Hers Health shares have slumped in 2026 as the telehealth provider moves away from selling compounded GLP-1 medications.
Hims & Hers Health stock might be falling out of favor on Wall Street, but one prominent insider is using the steep selloff to flip from seller to buyer.
Board member David Wells, the former chief financial officer of Netflix, bought Hims shares for the first time in nearly five years on Tuesday. Wells snapped up 48,400 shares at prices ranging from $24.19 to $24.25 apiece, or roughly $1.2 million in total, a securities filing shows.
Wells separately received 957 restricted stock units on May 20, according to a different form. RSUs are convertible to shares of class A common stock on a one-to-one basis. Hims directors typically receive equity awards in connection with their board service.
For Wells, who has served on the board of the telehealth provider since 2020, Tuesday’s purchase of Hims shares was his first on the open market since August 2021. Since then, he has only been a seller, unloading 260,000 shares in February 2024 and another 40,000 shares that November.
Investors cheered the latest move, sending Hims stock up 6.8% to $25.46 on Wednesday following the disclosure.
The director’s purchase comes as stock is deep in the red for the year. Hims shares have dived more than 21% in 2026, most recently driven lower by an underwhelming earnings report this month. The benchmark S&P 500 has gained 9.9% over the same period.
Investors are concerned Hims is losing its edge, as Novo Nordisk and Eli Lilly reclaim the market share the telehealth provider had gained during a shortage of GLP-1 weight-loss drugs.
In March, Hims agreed to sell Novo’s branded weight-loss medications through its digital platform in place of cheaper “copycats.” The following month, Hims announced that it would allow providers on its platform to prescribe scripts filled by independent pharmacies, including LillyDirect.
Hims is now tasked with finding a way to pivot from its business of selling compounded GLP-1 medications, which has become a crucial part of its identity and marketing.
The company’s latest earnings report didn’t soothe investor concerns. Shares tumbled earlier this month after Hims surprised Wall Street with a quarterly loss and lower-than-expected revenue.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com