HIMS is brushing off a downgrade from TD Cowen
Hims & Hers Health Inc (NYSE:HIMS) stock is soaring today, up 22.6% at $34.92 at last glance, after news that the telehealth platform will offer Novo Nordisk's (NVO) popular weight-loss drug, Wegovy. The report has HIMS brushing off a downgrade to "hold" from "buy" at TD Cowen, though BofA Global Research also chimed in with a price-target hike, lifting its price target to $26 from $22.
Today's pop has Hims & Hers stock gapping above the 50-day moving average -- which kept a cap on gains in March -- and above recent pressure at the $30 level. Since the start of the year, the equity is up 48.7%.
There's massive contrarian potential around the equity that could unwind. Of the 14 brokerages covering HIMS, nine maintain a "hold" or worse rating, while a whopping 30.7% of HIMS' total available float is sold short. Overdue upgrades and/or a short squeeze could keep the tailwinds blowing.
Options traders are answering the bell. So far, 135,000 calls and 62,000 puts have been exchanged, volume that is already 2.7 times the average amount. The weekly 5/2 40-strike call is the most popular, with new positions being bought to open there.
Options look like a good way to go when weighing in on the stock's next move. HIMS' Schaeffer's Volatility Scorecard (SVS) of 90 out of 100 means it has outperformed options traders' volatility expectations for the past year.