Caution Emerges for Hims & Hers as New Year Approaches

The year 2025 concluded with substantial gains for Hims & Hers shares, yet the outlook for 2026 is clouded by growing investor apprehension. Wall Street sentiment has shifted from optimism to wariness, driven primarily by heightened concerns over potential regulatory scrutiny of its weight-loss medication business and notable bearish trading activity.

A primary source of skepticism stems from the regulatory environment. Market attention is focused on the official review of compounded GLP-1 medications, a significant revenue driver for the company in 2025. This concern was underscored recently when Maple Tree Capital disclosed it had completely exited its position in Hims & Hers, citing increased regulatory risks as its rationale.

This cautious stance is echoed by equity researchers. Bank of America Securities recently reaffirmed its "Underperform" rating, attaching a price target of $32.00. With the stock trading near this level, the analysts see minimal potential for upward movement. Their reservations center on the sustainability of growth rates and intensifying competition within the GLP-1 weight-loss product segment.

Bearish Bets and Technical Weakness

Market dynamics reveal a pronounced shift in sentiment. The final trading session of 2025 ended with the stock in negative territory, underperforming the broader market. More alarmingly for shareholders, derivatives market data from Wednesday showed a sharp spike in unusual options activity.

Should investors sell immediately? Or is it worth buying Hims & Hers?

A clear tilt toward pessimistic positioning was observed, with large market participants increasingly purchasing put options. This activity suggests institutional investors are either hedging against further declines or directly speculating on a correction in early 2026. Technically, the stock's closing price of $32.21 now sits slightly below its 50-day moving average of $32.77.

Performance Context and the Path Forward

Despite the recent pressure, the equity remains up more than 31% on a year-to-date basis. However, the stock has retreated significantly from its 52-week high of $66.06, representing a decline of over 51% from that peak. The current narrative is defined by the tension between the company's past growth story and these emerging challenges.

The beginning of 2026 will test the stock's key support levels. Investors are expected to scrutinize upcoming quarterly reports closely. The critical question will be whether newer revenue streams—such as personalized testosterone treatments—can generate sufficient strength to offset any potential softness in the weight-management segment. Only solid operational results are likely to counteract the prevailing bearish thesis currently held by major financial institutions.