HIMS - Hims & Hers Stock Drops 12.8% After Short Report
2024-06-27 15:07:07 ET
Shares of online pharmacy Hims & Hers (NYSE: HIMS) dropped as much as 12.8% on Thursday after a short-seller wrote a report about the company. Shares recovered slightly during trading and are down 7.8% at 2:30 p.m. ET today.
Hunterbrook Media put out what appears to be a journalistic article, but it's in fact tied to Hunterbrook Capital, which is short the stock. As with any short report, investors should read it with an open mind but remain skeptical of the motivations of the writers.
In this case, Hunterbrook criticized Hims & Hers' GLP-1 weight-loss treatment, which is a compound made by a pharmacy and temporarily approved to fill shortages of GLP-1 drugs, and not a government-approved medication itself. There are questions, even by the Food and Drug Administration, about how effective the treatment is compared to approved versions of GLP-1.
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Hims & Hers Stock Drops 12.8% After Short Report