Hims and Hers, Inc. (NYSE: HIMS) shows strongly bullish signs that begin and end with the stock price action. It reflects volatility, but the bias is upward with rising support and the most recent swing, a bullish rebound, looks very strong within the pattern.
It consists of Three White Soldiers or Three Green Soldiers, technically, a bullish pattern formed by three consecutive weeks of buying activity.
It is a continuation pattern that suggests the rally will continue and potentially increase by an amount equal to or greater than the pattern itself. In this case, the pattern is equal to the 2025 trading range, roughly $40, sufficient to put this market at a new all-time high and above the $100 mark.
The signal is not limited to price action. There is a convergence of convergences, with the monthly, weekly, and daily charts in bullish alignment and indicators like trading volume, MACD and stochastic reflecting an increasingly strong market.
The volume is especially telling, steadily increasing since early 2024 when the rally began, with spikes increasing and converging with the price action. Likewise, the MACD momentum indicator peaks also converge with price action, indicating upward momentum is growing and new highs will likely be set.
The critical resistance point in mid-May is the current all-time high near $73, a price point likely reached before mid-summer.
A Short-Squeeze in HIMS Stocks Is Happening Now
The sell-side data suggests that a short squeeze in HIMS stock could lead to a significant market shift and sustained rally. The short interest at the end of April was nearly 28%, up 3% from the previous report and trending near record levels.
It has likely fallen in the three weeks since, with institutional activity supporting market action. The institutional activity in 2025 is mixed, with buying and selling elevated relative to previous quarters, reflecting profit taking and group rotation, but is bullish on balance.
They own about 70% of the stock, including fund and wealth managers and venture capital, so the tailwind is significant.
[content-module:Forecast|NYSE: HIMS]Analyst activity is a hurdle for this telehealth company. The analysts are generally bullish on the stock, rating it as a Hold with a bullish bias and revising their stock price targets higher over the past year.
Still, another catalyst is needed to spur them to continue the trend. The consensus implies a 40% downside, with high-end targets assuming fair value near mid-May trading levels.
The Q2 release could be the catalyst for analysts. The company’s Q1 results were better than expected, with hyper revenue growth accelerating to 110% and profitability improving.
The company also issued solid guidance for the year, indicating revenue in a range above the consensus target and for profitability improvement to persist.
The question is how badly the loss of compounded semaglutide sales will impact revenue and whether the addition of Wegovy will be enough to offset the difference. Either way, the company expects a high and accelerating 70% top-line growth and improved profitability in Q2, with strength building as the year progresses.
Hims & Hers Health, Inc. Has a Healthy Balance Sheet
Hims & Hers Health uses debt to help fund the growth of its healthcare operations. It recently issued some senior convertible notes, but no red flags were raised. The company’s balance sheet is robust, with total liabilities running at less than 0.5x assets, about 1.25x cash, and about 0.6x equity.
It can sustain operations while investing in growth and continuing to build leverage for investors. Equity, a measure of shareholder value, increased by 15% in Q1 and will likely continue growing as the fiscal year progresses.
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