Hims & Hers Health Inc (NYSE:HIMS) shares are climbing in Thursday’s premarket session. This follows a double-digit gain during Wednesday’s regular trading hours.
Novo Nordisk Partnership Boosts Sentiment
Investor optimism stems from a new partnership with Novo Nordisk A/S (NYSE:NVO). The deal brings branded GLP-1 treatments like Ozempic and Wegovy to the Hims platform. The move removes a legal overhang. It also signals a collaborative relationship with the major drugmaker.
Shifting Weight-Loss Strategy
The company is moving its U.S. weight-loss business toward FDA-approved treatments. Hims & Hers said it is shifting away from actively advertising compounded GLP-1 drugs. Existing patients may transition to branded therapies when clinically appropriate.
High Short Interest Fuels Momentum
Recent data shows short interest in HIMS increased from 81.01 million to 84.96 million shares. Currently, 46.09% of the company’s public float is held short. With an average daily volume of 32.93 million shares, it would take 2.58 days for short sellers to cover their positions.
Technical Analysis
HIMS is trading 59.9% above its 20-day simple moving average (SMA) ($17.06) and 16% below its 100-day SMA ($32.49), which shows a strong short-term bounce that still hasn’t repaired the intermediate trend.
Shares are down 23.73% over the past 12 months and are positioned closer to their 52-week low ($13.74) than their 52-week high ($70.43).
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the May 4, earnings report.
- EPS Estimate: 2 cents (Down from 20 cents YoY)
- Revenue Estimate: 62 cents Billion (Up from 59 cents Billion YoY)
- Valuation: P/E of 50.7x (Indicates premium valuation relative to peers)
HIMS Stock Price Activity: Hims & Hers Health shares were up 5.41% at $27.28 during premarket trading on Thursday, according to Benzinga Pro data.
Photo courtesy: Lori Butcher / Shutterstock.com
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