Deceleration in Growth Momentum: Hims & Hers Health’s App Downloads and Web Traffic Slowdown

Analyst Craig Hettenbach from Morgan Stanley maintained a Hold rating on Hims & Hers Health (HIMS – Research Report) and keeping the price target at $40.00.

Craig Hettenbach’s rating is based on a noticeable slowdown in the growth of Hims & Hers Health’s app downloads and web traffic. In May, app downloads increased by only 4% year-over-year, marking the weakest growth since January 2023. This slowdown is further highlighted by a 6% month-over-month decline in app downloads, contrasting with a 13% growth in the same period last year. The decline in downloads has been consistent over the past four months, with current figures falling back to levels seen before the launch of their compounded semaglutide offerings.
Additionally, while the Hers platform experienced a 51% year-over-year growth, this was a significant moderation from the 100% or higher growth observed in the previous year. The proportion of downloads from the Hers platform increased to 38%, up from 26% the previous year, while Hims app downloads fell by 13% year-over-year. Web traffic also showed a decline, with unique visitors increasing by only 8%, below the six-month average growth rate of 15%. These factors contribute to the Hold rating, as they indicate a deceleration in the company’s growth momentum.

In another report released on June 3, TD Cowen also reiterated a Hold rating on the stock with a $38.00 price target.

Based on the recent corporate insider activity of 229 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HIMS in relation to earlier this year.