HIMSWednesday, 27 May 2026
Insider buying and a BofA target cut
Director David Wells bought $1.17 million of stock on the open market, the first insider purchase since the Q1 results, which reverses the direction of the signal. BofA cut its price target for the fifth time, to $25, and the key variable is retention after Wegovy's price increase.
Analyst views
- BofA: price target cut from $28 to $25, Neutral maintained. Wegovy retention is the core variable, and BofA thinks the hurdle for hitting guidance is very high.
Key insights
- Director David Wells bought 48,400 shares at an average price of $24.235, a total of $1.173 million, raising his holding by 27.5% to 224,417 shares
- The first open-market insider purchase since the Q1 results. In previous months insiders were all sellers (CFO Okupe sold $1.46 million in April, and CLO Boughton sold $280,000 in April)
- Wells is also an executive at The Trade Desk. He is an experienced technology-industry figure with good judgement, so the purchase is not routine
- BofA cut its price target for the fifth time, from $28 to $25 (Neutral maintained), and published a Wegovy retention model for the first time
- To reach the midpoint of full-year revenue guidance, HIMS needs to add about 225,000 oral Wegovy subscribers in each of Q2 to Q4, equivalent to 45% of all new cash-paying oral Wegovy patients in the US
- The price rises from $39 in the first month to $149 a month thereafter, which BofA estimates will build to a revenue headwind of about $85 million by Q4
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- IQVIA data: the six-month retention rate for branded Wegovy is only about 42%
- BSM data for April show HIMS's share of new telehealth customers rebounding to about 46% (only 29-34% in January to March), back at the top of its historical range
- If churn is mild (the headwind falls to about $25 million), HIMS would need only about 35% market share to get there
Price action
Shares at $23.75 (26 May close). The 15-analyst consensus price target is $27.71 (implying upside of about 17%).
Sources (2)
- SEC Form 4 (filed 26 May 2026)
- Proactive Investors, citing the BofA research note
A brief is a lead for our research, not a verified conclusion or advice.