Hims & Hers Stock Faces Mounting Short Seller Pressure

Hims & Hers US4330001060

A stark divergence in market sentiment is emerging around Hims & Hers Health. Despite the telehealth company reporting robust revenue growth and initiating a share repurchase program, it has recently landed on a notable watchlist: the top ten most heavily shorted stocks. This significant bearish bet raises questions about whether the firm's solid operational performance can ultimately outweigh growing skepticism on Wall Street.

From a fundamental perspective, Hims & Hers continues to execute its growth strategy effectively. Third-quarter revenue surged 49% year-over-year to approximately $599 million. In a move designed to support the share price, the company's board authorized a stock buyback program worth $250 million.

However, these positive developments have failed to halt a recent downward trend in the stock. After a strong rally in early 2025—fueled by a partnership with Novo Nordisk in the GLP-1 medication space—the equity underwent a pronounced correction. The shares now trade at $33.99, a level far below the 52-week high of $66.06. Market technicians point out that the price has also fallen below key indicators like the 200-day moving average, situated at $40.24, which is often viewed as a bearish signal.

Institutional Bulls Versus Short Sellers

The company's new position on the high short interest list dominates the current conversation. This status indicates a substantial cohort of traders is either betting on a price decline or hedging against volatility. Concerns cited for this pessimism include the stock's valuation and intensifying competition within the online weight management sector.

Interestingly, this wave of short selling contrasts sharply with the actions of certain institutional investors. Regulatory filings reveal that Carnegie Investment Counsel increased its stake by more than 25% during the third quarter of 2025. A clear divide is evident: short-term traders are focusing on perceived technical vulnerabilities and sector risks, while longer-term investors appear to be concentrating on the company's expansion roadmap.

The Road Ahead and Critical Milestones

Looking forward, a key focus will be whether the ongoing buyback initiative can help establish a price floor at current levels. Management remains committed to its aggressive long-term targets through 2030. For the full 2025 fiscal year, the company forecasts revenue in the range of $2.335 billion to $2.355 billion.

All eyes are now on the next quarterly report, due in early 2026. This upcoming release will be crucial in demonstrating whether the underlying business possesses sufficient strength to counteract the substantial pressure being applied by short sellers.