📉 'Shorts are doubling down' on HIMS stock, with BoA, Citigroup adding to bearish calls

Shares of Hims & Hers (HIMS) surged as much as 19% Tuesday on news of a major European acquisition, but the rally didn’t last.

The pop came after the telehealth company announced plans to acquire Zava, a digital health platform with more than 1.3 million active customers across Europe.

The acquisition boosts Hims’ customer base by over 50% and offers an instant footprint in international markets. Investors initially welcomed the move, with HIMS stocks spiking in pre-market trading.

But by midday, the gains had all but vanished. HIMS closed flat, as a fresh wave of short sellers seemed to catch up with the stock.

According to Jonathan Stern, an analyst who writes under the Hims House alias, trading data shows that HIMS is currently “the most-shorted stock in the entire S&P 500 MidCap 400.”

$HIMS IS THE MOST-SHORTED STOCK IN THE ENTIRE S&P MIDCAP 400 🤯

#2 is Valaris, the offshore driller that literally went bankrupt four years ago

Valaris' short interest is 18%$HIMS sits at 34% pic.twitter.com/8Vxs7kKrUw

undefined Hims House (@himshouse) June 2, 2025

At the time, short interest stood at 34%, more than double that of the next-most shorted stock, Valaris (VAL), which came in at 18%.

Tuesday’s reversal was a clear signal that “shorts are doubling down,” Stern added.

HIMS has been one of the most explosive names on Wall Street this year, with shares up 123% since the start of 2025. Its market cap now sits around $12.6 billion.

The Street, though, doesn't buy into the HIMS euphoria.

📉 Wall Street bears mobilize

Bank of America doubled down on its “underperform” rating this week, setting a $28 price target on the stock. That implies nearly 50% downside from current levels.

The bank’s analysts remain skeptical about Hims’ overseas expansion plans, pointing to past missteps by health-tech names like Cerner and BetterHelp as cautionary tales.

Citigroup analyst Daniel Grosslight also reiterated a “sell” rating, with a price target of $30.

While he acknowledged Hims’ revenue surge, fueled in large part by GLP-1 weight loss drugs, he said weak net subscriber growth in Q1 is a big concern.

Hims reported $586 million in revenue last quarter, including $230 million from GLP-1s alone. Analyst Riyado Sofian believes the company could “easily” generate $1 billion in weight loss drug revenue this year.

According to $HIMS 10-Q:
Q1 GLP-1 Revenue was $230M, undefineda significant majority of which came from personalized dosesundefined.

For context, this is higher than the company's GLP-1 Revenue in the whole of 2024, which was $225M.

Also, $230M annualized is $920M.

As a reminder, management…

undefined Riyado Sofian (@riyadosofian) May 6, 2025

But some of the recent buzz may have little to do with fundamentals.

As Investors Observer noted, HIMS’ recent listing in South Korea has attracted retail traders who often treat U.S. names like a “casino,” according to Acadian Asset Management. That could set the stage for a rollercoaster ride in HIMS stock moving forward.