Hims & Hers Health (HIM) stock underwent a massive rally on Tuesday, prompting some traders to wonder if the shares have been targeted by meme investors for a short squeeze. Trading activity is certainly elevated today, with more than 99.3 million shares traded, compared to a three-month daily average of 29.22 million shares.
The heavy trading of HIM stock today drove a sharp rally. This had the shares up 9.98%, extending the meme stock’s 90.28% run year-to-date. Interest in the company spiked this year after it advertised GLP-1 weight-loss injections during Super Bowl LIX in February.
HIMS Stock Movement Catalyst
When considering the possibility that HIMS stock is under a short squeeze, traders need to keep a few things in mind. That includes the short interest and the short interest as a percentage of float for Hims & Hers Health. The former is estimated at roughly 60 million shares, while the latter appears to be around 31%. These figures are high enough for a short squeeze.
Acting as a catalyst for this squeeze is Hims & Hers Health Q1 2025 earnings report. The company reported results after markets closed on Monday and it impressed investors with its results. Diluted earnings per share of 20 cents and revenue of $586.01 million easily surpassed Wall Street’s estimates of 12 cents per share and $538.59 million in revenue.
Is HIMS Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Hims & Hers Health is Hold, based on four Buy, seven Hold, and two Sell ratings over the last three months. With that comes an average price target of $41.67, representing a potential 10.81% downside for HIMS stock. These ratings and price targets will likely change as analysts update their coverage after the earnings report.
