Form 4: Hims & Hers Health Chief Legal Officer Sells Shares Under 10b5-1 Plan

Soleil Boughton, Chief Legal Officer of Hims & Hers Health, Inc., executed stock option exercises and sales of Class A Common Stock under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On March 13, 2024, Soleil Boughton, the Chief Legal Officer of Hims & Hers Health, Inc., exercised stock options to acquire 63,621 shares of Class A Common Stock at a price of $2.43 per share.
• Simultaneously, Boughton sold 63,621 shares of Class A Common Stock at an average weighted price of $15.1682, with prices ranging from $15.00 to $15.375.
• These transactions were conducted under a Rule 10b5-1 trading plan adopted on September 8, 2023.
• Following these transactions, Boughton directly owns 154,345 shares of Class A Common Stock and 113,769 stock options.
• The stock options vest monthly over a four-year period from February 12, 2020, and are now fully vested.

Sentiment

Score: 6

Explanation: Neutral sentiment as the transactions were part of a pre-planned trading plan and do not necessarily indicate a change in the executive's confidence in the company.

Positives

• The transactions were conducted under a pre-arranged 10b5-1 trading plan, which is generally viewed as a positive corporate governance practice.

Risks

• Executive stock sales can sometimes be perceived negatively by investors, although the use of a 10b5-1 plan mitigates this concern.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies. The use of a 10b5-1 plan is a standard practice to avoid accusations of insider trading.

Comparison to Industry Standards

• The vesting schedule of the options (four years with monthly vesting) is a fairly standard practice in the tech and healthcare industries.
• The use of a 10b5-1 trading plan is a common practice among executives at publicly traded companies, including those in the telehealth sector like Teladoc and Amwell, to manage their stock sales in a compliant manner.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in ownership, but the use of a 10b5-1 plan should mitigate concerns about insider trading.

Key Dates