Why Hims & Hers Stock Rebounded on Wednesday
Hims & Hers (NYSE: HIMS) stock was a heartening comeback story on Wednesday, following something of a rout earlier in the week. Several analysts raised their price targets on the specialty healthcare company on that slump, which helped Hims & Hers recover by more than 5% in mid-week action. That was more than good enough to top the S&P 500 index's essentially flat performance.
The source of investor bearishness in previous days was Hims & Hers' announcement on Monday that it might halt sales of a highly popular product -- compound versions of semaglutide, the white-hot molecule used in Novo Nordisk's Wegovy. Hims & Hers had been allowed to sell semaglutide due to a shortage in the market. However, the U.S. Food and Drug Administration (FDA) has declared the shortage over.
Investors can be rather unforgiving when a company even hints at abandoning a hot product or service. So not surprisingly, they traded aggressively out of Hims & Hers when disseminating the news.
Source Fool.com
