HIMS attracted four price-target hikes after a quarterly win
Hims & Hers Health Inc (NYSE:HIMS) beat top- and bottom-line estimates for the first quarter, with net profits seeing a 300% jump. While the telehealth giant issued a dismal outlook, it still attracted four price-target hikes, including from Leerink Partners to $42 from $40. At last glance, HIMS was up 9.9% to trade at $46.06, erasing premarket losses.
Options traders are chiming in, with 267,000 calls and 188,000 puts traded so far today, which is 6 times the intraday average volume. The most popular contract is the weekly 5/9 45-strike call, followed by the 50-strike call in that series, with new positions being opened at both.
HIMS is trading at its highest level since February, after last week conquering resistance at the $40 level, which had been capping price action since early March. Shares are also on track for their fourth-straight daily gain as they consolidate above the 60-day moving average and extend their impressive 296% year-over-year lead.
The security looks ripe for a short squeeze, too. Short interest is up 10.8% in the last two reporting periods, and the 60.88 million shares sold short make up 31.9% of the equity's available float. Should some of this pessimism begin to unwind, HIMS could surge even higher.