Can Hims & Hers Stock Find Its Footing?

The telehealth sector presents a study in contrasts, and Hims & Hers Health, Inc. is a prime example. While the company’s underlying business demonstrates remarkable strength, its share price tells a different, more troubled story. A recent strategic move by management—a substantial share repurchase authorization—has investors questioning whether this could be the catalyst that finally stabilizes the equity.

A Tale of Strong Growth and Weak Performance

Fundamentally, Hims & Hers continues to execute impressively. The company’s third-quarter 2025 financial results revealed a powerful 49% year-over-year revenue surge, reaching approximately $599 million. This robust growth rate underscores a rapidly expanding customer base and sustained high demand for digital health solutions.

Despite these solid operational metrics, the market’s reception has been lukewarm. The stock is currently trading well below the psychologically significant $40 threshold and sits more than 48% below its 52-week high of nearly $73. This disconnect suggests investor skepticism about whether the company’s rapid top-line expansion can successfully translate into sustainable profitability, with concerns potentially centered on rising customer acquisition costs pressuring future margins.

Management Deploys a $250 Million Vote of Confidence

In a decisive move during November, the company’s leadership authorized a share repurchase program worth up to $250 million. This initiative serves as a clear signal of the board’s belief that the stock is undervalued. While the amount represents a modest portion of the firm’s $8.7 billion market capitalization, in the current weak pricing environment, even sporadic buybacks could provide noticeable support.

Should investors sell immediately? Or is it worth buying Hims & Hers?

The underlying message to the market is unambiguous: management is confident in the company’s intrinsic value and is willing to commit capital to generate shareholder returns. The effectiveness of this strategy in countering the prevailing downward technical pressure will become clearer in the coming trading sessions.

Technical Picture: Damaged but Poised for Recovery?

From a technical analysis perspective, Hims & Hers shares are navigating a critical juncture. The equity is trading below its 50-day moving average, situated around $48, and is currently testing support near the $37 level—a recent intraday low. A decisive break below this support zone could trigger another wave of selling. Conversely, a successful hold and stabilization at this level might establish a foundation for a technical rebound.

The stock’s high Beta, exceeding 2.0, adds another layer of complexity. This characteristic means the share price tends to be more volatile than the broader market, amplifying both upward and downward movements. Investors should therefore anticipate and be prepared for significant price swings, which are typical for a stock with this risk profile.