The telehealth stock's top-line whiff is a sore spot
Hims & Hers Health (NYSE:HIMS) shares were last seen down 7% to trade at $29.54. after the telehealth company posted second-quarter results showing a wider-than-expected loss of 37 cents per share versus the 5 cent loss estimate, though revenue of $753 million beat estimates. No fewer than six analysts hiked their price targets after the event, including Needham to $42 from $35, citing growth and expansion from its
GLP-1 product.
The 40-day moving average is keeping a tight lid on the shares this month, though support appears to be emerging at the $30 level, which kept gains in check from mid April to mid June. The stock currently sits a hair below its year-to-date breakeven.
Options traders are also chiming in, with 32,000 calls and 23,000 puts exchanged so far -- double the intraday average volume. The weekly 8/14 35-strike call is the most popular, followed by the 36-strike call in the same series, with new positions opening at the latter.
Short sellers are firmly in control, with 29.27% of the stock’s available float now sold short. It would take short sellers roughly three days to buy back the 61.41 million shares sold short at the stock's average pace of trading.
Lastly, HIMS' Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 80 out of 100, indicating the stock has tended to exceed option traders' volatility expectations during the past year.