Hims & Hers Health (HIMS) has priced an upsized offering of $870 million in convertible senior notes due in 2030. The offering was initially planned for $450 million but was increased due to strong demand from institutional investors. The health and wellness platform intends to use the proceeds to fuel its global expansion efforts and invest in artificial intelligence (AI) and personalized treatments.
Further, the underwriters have been granted an option to purchase an additional $130 million in notes. If they use this option fully, the total money raised will go up to about $968.8 million.
The company will use the funds to improve its data systems and create AI-driven personal treatments, making healthcare better for consumers.
HIMS stock declined 2% yesterday, likely because investors are concerned about future share dilution. If the company turns these notes into stock, it would increase the total shares, which could lower the value of each share for current investors.
HIMS Appoints New CTO to Lead AI Healthcare Expansion
At the same time, Hims & Hers Health has appointed Mo Elshenawy as its new Chief Technology Officer, marking a major step in its AI-driven healthcare strategy.
Elshenawy, formerly President and CTO at Cruise, brings deep expertise in AI, robotics, and large-scale infrastructure. His skills will help HIMS grow its AI-powered healthcare, improving diagnosis, treatment, and delivery.
Is HIMS Stock a Good Buy?
Turning to Wall Street, HIMS stock has a Hold consensus rating based on four Buys, eight Holds, and two Sells assigned in the last three months. At $45.54, the average Hims & Hers stock price target implies an 11.4% downside potential. Shares of the company have gained 112.57% year-to-date.
