Hims & Hers (HIMS) stock tanked on July 29 after the Federal Trade Commission, alongside Utah and Los Angeles County, filed a lawsuit against the telehealth provider. The regulators allege HIMS misled consumers about recurring subscriptions, deliberately obstructed cancellations, and illegally shared private patient health data with ad platforms like Meta (META) and Snap (SNAP).
Hims & Hers shares have rebounded slightly on July 30 and are now down about 32% versus their recent high.
What the FTC News Means for Hims & Hers Stock
The FTC news is bearish for HIMS stock as it strikes right at the heart of the company’s lucrative direct-to-consumer (DTC) business.
Beyond the threat of substantial financial penalties, forced compliance will likely increase churn rates and elevate customer acquisition costs.
Plus, allegations that Hims & Hers leaked highly sensitive medical data destroy consumer trust — a critical asset for any telehealth platform — directly threatening the firm’s long-term revenue.
Note that this FTC-driven selloff in HIMS crashed it below its 100-day moving average (MA), indicating bearish momentum could sustain in the near term.
Should You Buy the Dip in HIMS Shares Today?
Hims & Hers stock has been in a sharp downtrend in recent weeks, but buying it on the dip carries significant risk.
Despite the selloff, the company’s forward multiple appears stretched considering it’s expected to report a loss of $0.07 per share for its current quarter on Aug. 10, which would represent a 141% decline on a year-over-year basis.
Moreover, its GLP-1 relationship with Novo Nordisk (NVO) has been tense and marked by legal battles, which further dulls its investment appeal in 2026.
Investors should also note that insiders have recorded 11 sell transactions against only one buy over the past three months, suggesting management is not entirely confident in significant upside potential, at least in the near term.
And it’s not like HIMS pays a healthy dividend to somewhat offset these risks either.
How Wall Street Recommends Playing Hims & Hers
On the flip side, however, Wall Street analysts believe the recent selloff in HIMS shares has gone a bit too far.
According to Barchart, while the consensus rating on Hims & Hers Health sits at “Hold," the mean price target of about $30 signals potential upside of an exciting 20% from current levels.
