Hims & Hers Health, Inc. (HIMS) is facing significant selling pressure in today’s trading session. As of 11:10 AM EDT, the telehealth company’s stock is trading at 1.98, or 4.13%, for the day.
The stock, which closed yesterday at $47.98, opened slightly lower at $47.03. After trading in a relatively tight range for the first hour, shares experienced a sharp and sudden drop around 9:30 AM, plunging to a daily low of $45.04. The stock has since attempted a minor recovery from that low but remains firmly in negative territory.
The day’s trading has occurred within a range of $45.04 to $47.20. While today’s volume of 10.5 million shares is still below its average, a significant portion of that volume occurred during the sharp morning decline, indicating strong selling momentum. Fundamentally, Hims & Hers carries a positive EPS (TTM) of $0.68 and a P/E Ratio of 67.47, suggesting investors have high growth expectations for the profitable company.
Should You Buy or Sell HIMS Stock Today?
The current chart action presents a critical decision point for investors and traders.
For potential sellers: The sharp, high-volume breakdown is a clear bearish signal. The stock has decisively broken below its opening price and the previous day’s close. This suggests a shift in sentiment, and traders who are risk-averse or looking to protect profits might consider this a signal to sell. The failure to mount a significant recovery so far could lead to further downside.
For potential buyers: The bounce off the day’s low of $45.04 could indicate that buyers are stepping in at this level, viewing the drop as an overreaction. This “buy the dip” scenario is attractive for those who believe in the company’s long-term story. The 1-year analyst target estimate of $48.53, while only slightly above the previous close, is well above the current price, suggesting potential upside.
Opinion
Hims & Hers (HIMS) is a growth stock, and today’s sharp pullback is a reminder of the volatility that can come with such names. The high P/E ratio indicates that the stock is priced for strong future growth, making it sensitive to any shifts in market sentiment or perceived headwinds.
The key level to watch for the remainder of the day is the low of $45.04. If the stock can hold above this level and build a base, it may have a chance to recover some of its losses. However, a break below this support could trigger another wave of selling.
For long-term investors, this dip could represent a more attractive entry point into a profitable and growing company. For short-term traders, the high volatility presents both opportunity and significant risk. Caution is warranted until the stock shows signs of stabilization.
