Key Stats for Hims & Hers Stock
- Price change for Hims & Hers stock in last 6 months: 96%
- $HIMS Stock Price as of Aug. 24: $31
- 52-Week High: $65
- $HIMS Stock Price Target: $31
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Hims & Hers (HIMS) stock had its worst day in nearly a month on Monday, falling 8% and breaking a three-session winning streak. The trigger was a report that Visa flagged a jump in credit card disputes tied to the company’s weight-loss subscriptions.
According to Bloomberg, which cited internal documents, Visa placed Hims in its Acquirer Monitoring Program after disputes climbed in July. Hims’ payment processor, Stripe, reportedly told the company about the decision earlier this month.
To get out of the program, Hims needs to bring its dispute rate under 1.5% of transactions and hold it there for three straight months.
Every dispute now comes with an $8 surcharge. That adds up to roughly $75,000 in September alone. It’s a small number for a company this size, but it spotlights how customers experience Hims’ weight-loss business, which is growing fast.
That weight-loss segment is also where the trouble is concentrated. It accounted for 75% of all credit card disputes at Hims. Membership starts at $39 for the first month, then jumps to $149, with automatic renewals.
Prescription drugs are billed on top of that, with prices depending on the medication and dose. Hims is reportedly looking at ways to send clearer notices before charging customers, so people aren’t caught off guard.
This isn’t the only headache facing Hims & Hers stock right now.
Just last month, the FTC, along with Utah and Los Angeles County, sued the company over its subscription, cancellation, and privacy practices.
Regulators claim Hims didn’t make its recurring billing clear enough, made cancellations harder than they should be, and shared customer data with Meta and Snap for advertising.
Hims has pushed back, saying regulators ignored evidence the company handed over during a nearly three-year investigation.
See analysts’ growth forecasts and price targets for Hims & Hers stock (It’s free) >>>
What the Market Is Telling Us About Hims & Hers Stock
Not every analyst is turning bearish, though.
Truist raised its price target on Hims & Hers stock to $32 from $27, but kept a Hold rating, implying just 3% upside from here.
Using card data along with Hims’ own Q2 numbers, Truist said deferred revenue from compounded GLP-1 drugs likely helped results, and retention among existing GLP-1 customers came in stronger than expected.
So the picture is mixed. The billing and legal issues are real and add fresh uncertainty for Hims & Hers stock.
But the underlying business, especially customer retention in weight loss, still looks solid to at least one analyst.
Investors will likely be watching closely to see whether Hims can clean up its dispute rate and put the regulatory noise behind it.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Hims & Hers Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
