Significant short interest in Hims & Hers at critical points following strongest weekly growth, according to a recent report.
Revised Article:
Hims & Hers Health (NYSE: HIMS) has got the investment world's attention, thanks to a massive 45% surge this week—their best weekly leap yet. But let's take a gander at the scuttlebutt around short interest, shall we? According to financial gurus at S3 Partners, the situation's moving into critical territory.
Now, you might be wondering, what's so hot about this short interest? Well, as of April 15, 2025, short interest surged to an eye-popping 60.66 million shares(1). That's a whopping 33.32% bite out of the float(1), with a short ratio of 2.46 days to cover(1). Sounds like there's a whole passel of traders banking on the stock's price plummet.
This bearish sentiment carries some serious implications for HIMS. On the one hand, high short interest tends to inflate stock volatility, especially around key events like earnings reports. Keep an eye on May 5, when they drop their Q1 2025 results(2). If their performance impresses, it might trigger a buying frenzy that reduces short positions. But on the flip side, a lackluster report could fan the flames of selling pressure.
On the bright side, a positive surprise or bullish outlook during the J.P. Morgan conference on May 15(2) couldpt a wave of short sellers abandoning their positions, triggering a rapid price upswing due to short squeeze(2). Despite the bearish stance, HIMS trades at a whopping 2.4x FY25 sales, smack dab against projected revenues of $2.5B(1). That gap suggests some lingering skepticism about the company's long-term growth and profitability.
So, where do we go from here? In the coming weeks, keep an ear to the ground for updates on subscriber growth and product demand trends, crucial factors in the run-up to the earnings release(5). That sneaky short interest? Keep a close watch on it—it just might reveal some juicy trade opportunities.
- With the high short interest in Hims & Hers Health equating to 33.32% of the float and a short ratio of 2.46 days to cover, financial analysts at S3 Partners have indicated that the situation is critical, implying a possible steep decline in the stock's price.
- If Hims & Hers Health manages to deliver impressive quarterly results on May 5, 2025, the buying frenzy that could ensue may reduce short positions, potentially causing a rapid price upswing due to a short squeeze.
- Conversely, a less-than-impressive Q1 2025 report could exacerbate selling pressure, leading to a significant drop in the share price.
- Despite the company's current valuation of 2.4x FY25 sales and projected revenues of $2.5B, the substantial gap suggests lingering skepticism about Hims & Hers Health's long-term growth and profitability, making it crucial to monitor subscriber growth and product demand trends for potential trade opportunities.
