Hims and Hers Stock Drops Weight as Earnings Loom

Core Insights - Hims & Hers Health Inc (NYSE:HIMS) experienced significant stock volatility, with a 17.5% increase on Tuesday despite a downgrade from Morgan Stanley [1] - The stock is currently down 21.5% to $52.16 following the resolution of a weight-loss drug shortage by Novo Nordisk and the acquisition of a U.S.-based peptide facility [2] - Year-to-date, HIMS is up 115$9.22 [3] Earnings and Market Reactions - HIMS is set to report earnings on February 24, with historical post-earnings reactions showing five out of the last eight resulted in declines, although there was a 31% surge following the February 2024 earnings report [4] - The options market anticipates a 24.6% post-earnings move, significantly higher than the average two-year move of 8.9% [4] Short Interest and Analyst Ratings - There is notable short squeeze potential, with short interest increasing by almost 12% recently, amounting to 31.6% of the stock's total float [5] - Among 14 brokerages covering HIMS, nine maintain "hold" or worse ratings, with a consensus 12-month price target of $34.92, representing a 33% discount to the current price [5] Options Market Activity - Bearish sentiment has been prevalent, with a 10-day put/call volume ratio of 1.94, placing it in the 97th percentile of its annual range [6] - HIMS has shown a tendency to deliver larger-than-expected moves, as indicated by a Schaeffer's Volatility Scorecard (SVS) score of 91 [6]