Hims & Hers Health (HIMS) used to be the darling of the telehealth world. It was the "cool" brand that made talking about hair loss or ED as normal as ordering a pizza. But lately, checking the ticker feels a lot like watching a slow-motion car crash. If you're looking at your portfolio and asking why is hims stock down today, you aren't alone.
The short answer? It’s complicated.
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Honestly, the market is currently throwing a bit of a temper tantrum. On Friday, January 16, 2026, HIMS shares are hovering around $31.41. That’s a far cry from the highs we saw just a year ago. To understand the "why," you have to look past the surface-level charts and dig into the messy world of GLP-1 compounding and legislative bickering.
The GLP-1 Weight Loss Bubble is Leaking
The biggest weight on the stock right now—literally and figuratively—is the weight loss category. For a while, Hims was riding the semaglutide wave. They were offering compounded versions of popular GLP-1 drugs, and investors were salivating over the margins.
Then, the FDA stepped in.
By late 2025, the FDA had essentially declared the semaglutide shortage "resolved." This was a massive blow. Under the rules, compounding pharmacies can only mass-produce "essentially a copy" of a drug when it’s on the official shortage list. When Novo Nordisk and Eli Lilly finally got their supply chains in order, the legal loophole for companies like Hims began to shrink.
Wait, it gets worse.
Legislators are now circling. The "SAFE Drugs Act of 2025," introduced by Representatives Rudy Yakym and André Carson, is gaining traction this week. This bill is specifically designed to tighten the screws on mass-compounded drugs. It’s not just a suggestion; it’s a direct threat to the revenue stream that sent HIMS stock to the moon in the first place.
Why Is Hims Stock Down Today and Who is to Blame?
Investors hate uncertainty. Right now, Hims is practically a case study in it.
Bank of America recently slashed its price target for HIMS to a "Street-low" of $29. That kind of move from a major institution is like a lighthouse warning ships away from a rocky shore. They aren't just worried about the drugs themselves; they’re worried about the 2026 revenue goals. If the weight loss segment stalls, the math for the whole company stops making sense.
Then there’s the CEO, Andrew Dudum.
He’s been doing a lot of selling. In late 2025, he offloaded about $11 million worth of shares. Sure, it was a "prearranged plan," but the timing was... well, it wasn't great. It happened right as the company was trying to pivot into new markets like menopause care. When the guy at the top is cashing out, the folks at the bottom tend to get nervous. It’s human nature.
A Quick Look at the Numbers
- Current Price: Roughly $31.41.
- 52-Week High: $72.98 (Ouch).
- Forward P/E: 58.81.
- Recent Momentum: Down over 15% in the last few weeks.
The stock is currently trading at a massive premium compared to its peers. Its Forward P/E is nearly double the industry average. Basically, investors were paying for a "growth story" that is now facing a very real regulatory wall.
The Amazon Factor
We can't talk about Hims without mentioning the giant in the room. Amazon Pharmacy recently announced it would start carrying Novo Nordisk’s Wegovy pill.
Think about that.
Instead of going through a specialized telehealth platform for a "compounded alternative," people can now just go to the place they already buy their toilet paper and get the name-brand stuff covered by insurance. Competition isn't just coming from other startups like LifeMD; it’s coming from the most efficient logistics machine on the planet.
Is This Just a "Buy the Dip" Moment?
Some analysts, like those at Evercore ISI, are a bit more level-headed. They recently initiated coverage with an "In-Line" rating and a $33 target. They aren't screaming "sell," but they aren't exactly doing backflips either.
The core of the bull case is that Hims is more than just a weight loss company. They have hair loss, sexual health, and dermatology. They’re expanding into the UK and Canada. They’re using AI to personalize treatments.
But—and this is a big but—the weight loss hype was the engine. If you take the engine out, you've just got a very pretty, very expensive car that isn't moving very fast.
The "SAFE Drugs Act" is the real wild card here. If that bill passes and effectively kills the GLP-1 compounding business, Hims will have to reinvent itself again. And pivots are expensive.
What You Should Actually Do Now
If you’re holding HIMS or thinking about jumping in, you need to be realistic. This isn't the same stock it was in 2024. The "easy money" from the GLP-1 shortage is gone.
Keep a close eye on the SEC filings. If you see more insider selling from Dudum or other executives, take it as a sign. Also, watch the FDA’s shortage list like a hawk. The moment semaglutide is officially "removed" from any remaining shortage categories, the clock starts ticking for the compounding pharmacies.
Actionable Next Steps:
- Check your exposure: If HIMS is more than 5% of your portfolio, you might be over-leveraged in a highly speculative regulatory play.
- Monitor the SAFE Drugs Act: Follow the bill’s progress through the House Energy and Commerce Committee. Its success or failure will likely dictate the stock's direction for the rest of 2026.
- Review the competition: Look at how Amazon Pharmacy and Eli Lilly’s "LillyDirect" are performing. If they continue to gain market share, the "convenience" moat for Hims starts to look more like a puddle.
The reality of why is hims stock down today is that the market is finally pricing in risk that it ignored for a year. It's a sobering reminder that in the world of healthcare, the government always has the final say.