Aug 15 - Hims & Hers Health (NYSE:HIMS) slipped about 3% in early trading on Friday after Bloomberg published fresh details about a Federal Trade Commission probe into the company's business practices. The report says the FTC opened an inquiry following consumer complaints that Hims & Hers makes it hard for customers to cancel subscriptions and questions the company's advertising practices.
Hims & Hers first told investors about a regulatory review in July 2024, but Bloomberg's report adds new color on what regulators are investigating. According to people familiar with the matter, the agency looks at cancellation flows, disclosure language, and whether marketing crosses legal lines. The company hasn't released a new statement tied to the Bloomberg story.
For investors, the short-term hit reflects the subscription model's vulnerability: when regulators probe cancellation or billing, churn can rise and trust can fall. Analysts will watch complaint volumes, any formal FTC subpoenas, and whether the firm needs to change its renewal mechanics or face penalties. Until that clarity arrives, expect volatility around HIMS shares as traders price regulatory risk into the stock.
Based on the one year price targets offered by 13 analysts, the average target price for Hims & Hers Health Inc is $51.22 with a high estimate of $85.00 and a low estimate of $28.00. The average target implies a upside of +8.67% from the current price of $47.13.
Based on GuruFocus estimates, the estimated GF Value for Hims & Hers Health Inc in one year is $36.25, suggesting a downside of -23.09% from the current price of $47.13. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.