Shares of Hims & Hers Health, Inc. (NYSE: HIMS) have seen a dramatic decline of approximately 75% since reaching an all-time high of $64.65 in May 2025, marking a challenging period for the telehealth company. This decline has intensified recently, driven mainly by a lawsuit filed on February 9 by Novo Nordisk, a leading pharmaceutical company. The lawsuit accuses Hims & Hers of unlawful mass-marketing of unapproved versions of their FDA-approved semaglutide medications, potentially endangering patients and misleading them regarding their health.
Novo Nordisk aims to protect its innovations that contribute to the management of serious chronic conditions such as obesity and diabetes. The company is seeking a court order to prevent Hims & Hers from selling the contested compounded drugs and is also pursuing damages. As a result, Hims & Hers has experienced a significant sell-off, dropping more than 48% in just one month.
Despite this bearish trend, analysts remain hopeful regarding HIMS’s prospects. They believe that much of the negative impact from the lawsuit may already be reflected in the stock’s price. The company is set to report earnings on February 23, and analysts predict it will not only post positive earnings per share but also achieve record quarterly revenues of $619 million. Over the past year, Hims & Hers has demonstrated impressive revenue growth, averaging nearly 82%.
Moreover, HIMS’s Relative Strength Index (RSI) stands at an exceptionally low 16.87, indicating that the stock may be oversold and due for a potential rebound. An RSI below 30 typically suggests that an asset is oversold and could be poised for a price recovery in the near term.
While the health care sector remains relatively flat as we move through 2026, the situation for Hims & Hers can be viewed with cautious optimism. The potential for recovery exists, bolstered by positive analyst sentiment and the company’s growth trajectory in an evolving telehealth marketplace.