Hims & Hers Stock Crashes 30% Despite $250M Buyback Plan
Hims & Hers Health has faced a turbulent month as its stock plummeted nearly 30% despite a major share buyback. The company announced a $250 million repurchase programme on November 17, 2025, aiming to reassure investors about its undervaluation in the stock market. Yet, the move failed to halt the decline, raising further doubts about its financial outlook.
On November 17, 2025, management launched a $250 million share buyback to signal confidence in the stock's value. This followed an earlier $100 million repurchase effort, neither of which stopped the downward trend in the stock market. Within a month, shares fell by almost 30%.
Two days after the latest buyback announcement, CFO Oluyemi Okupe sold 23,187 shares at an average price of $36.81. The timing of the sale, amid the stock's sharp decline in the stock market, has led some to question insiders' faith in a quick recovery.
The company's valuation remains a key concern. Its price-to-earnings (P/E) ratio sits between 61 and 66, far above the healthcare sector average of 21.9 and competitors' average of 28.4. Analysts warn that such a premium leaves little margin for error, especially as competition in the GLP-1 weight-loss drug market intensifies.
A November 20 analysis stressed the need for urgent action. Investors are now watching closely to see if Hims & Hers can deliver strong fundamentals to justify its high valuation and restore confidence in the stock market.
The stock's continued decline, despite buybacks, highlights growing investor scepticism. With a lofty valuation and rising competition, the company must now prove its financial strength to stabilise shareholder trust. The coming months will be critical in determining whether Hims & Hers can turn the tide in the stock market.
