Hims & Hers Health, Inc. (NYSE:HIMS) saw its shares edge 1.5% higher on Monday after unveiling a fresh $250 million stock repurchase authorization, expanding its capital return strategy following the completion of its prior $100 million buyback plan launched in July 2024.
The new three-year authorization gives the digital health platform flexibility to repurchase Class A shares through various methods, including open-market buying, negotiated transactions, and 10b5-1 trading arrangements. The company emphasized that execution will remain opportunistic and guided by broader market conditions and internal investment priorities.
“We continue to see opportunities where the market value of our Class A common stock may not fully reflect what we believe is its intrinsic value,” said Co-founder and CEO Andrew Dudum. “With our strong balance sheet and projected future cash flows, this new program gives us the flexibility to capitalize on those moments and continue delivering value for our shareholders.”
The stock initially traded slightly lower earlier in the day after reports that Novo Nordisk planned to reduce cash prices on its weight-loss drugs Wegovy and Ozempic — categories that overlap with Hims & Hers’ telehealth offerings.
Hims & Hers said the expanded buyback plan underscores its balanced capital allocation philosophy, pairing ongoing investments in product innovation and growth with the ability to repurchase shares when management believes they are undervalued. The company added that the program may begin, pause, or end at any time.