We recently published a list of 12 Most Shorted Stocks in 2025. In this article, we are going to take a look at where Hims & Hers Health, Inc. (NYSE:HIMS) stands against other shorted stocks in 2025.
Reuters reported that President Trump’s tariffs have impacted the broader stock markets, weighing on investors’ sentiments, as worries related to the economic slowdown drove a market sell-off which wiped out ~$4 trillion from the S&P 500’s peak last month, when the markets cheered Trump’s agenda. New Trump policies have resulted in increased uncertainty for businesses, consumers, and investors.
Average Short Interest Saw a Decline
Reuters, while highlighting the comments made by Peter Orszag (CEO of Lazard), mentioned that the uncertainty which is created by tariff wars regarding Canada, Mexico and Europe continues to prompt the top executives to reconsider the forward-looking strategies. Furthermore, while the tensions with China remain understandable, investors are confused with worries related to Canada, Mexico, and Europe. If this doesn’t get resolved over the next month or so, there can be real damage to the broader economic prospects of the US and M&A activity, says Orszag.
As per S&P Global’s long/short report (February 2025) dated February 14, the average short interest throughout US equities fell to 76 basis points over the month. However, short interest increased throughout several sectors during the period. That being said, Consumer Durables saw a 5-bps rise and REITs encountered a 4-bps increase. Notably, the largest decreases were seen throughout the Household and Personal Products sector (-7 bps), and the Consumer Services (-6 bps) sectors.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Trends in US Short Selling
The US markets have reversed their January rally with a weak February, says Ihor Dusaniwsky (Managing Director of Predictive Analytics). On February 28, Dusaniwsky stated that markets are down for the year, with the Nasdaq index seeing the brunt of the sell-off. The US short sellers were down $45.8 billion (3.42%) in January mark-to-market losses. Notably, two-thirds of every dollar shorted in January remained unprofitable and only 33% were profitable. With markets trending downward, there has been an increase in short selling throughout most of the sectors in the US/Canadian markets, says Dusaniwsky. If the weakness in the market continues, there can be increased short selling.
Our Methodology
To list the 12 Most Shorted Stocks in 2025, we used a screener and shortlisted the most shorted stocks. Next, we mentioned the hedge fund sentiment around each stock. Finally, the stocks are arranged in ascending order of their hedge fund holdings, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A nurse in a telehealth platform talking with a patient on video call for consultation.
Hims & Hers Health, Inc. (NYSE:HIMS)
Number of Hedge Fund Holders: 38
Short % of Shares Outstanding (as of February 28): ~23.3%
Hims & Hers Health, Inc. (NYSE:HIMS) operates a telehealth platform, connecting consumers to licensed healthcare professionals. Analyst Craig Hettenbach from Morgan Stanley gave a “Hold” rating, setting a price objective of $60.00. The company has been showcasing a differentiated and scalable platform, increased gross margins, and strong leadership, which are positive indicators. Furthermore, the analyst’s rating demonstrates a disciplined investment approach, acknowledging Hims & Hers Health, Inc. (NYSE:HIMS)’s solid business momentum and the expectations of future entry points becoming more favourable. Elsewhere, BTIG analyst David Larsen upped the company’s price target, setting it at $85.00, an increase from the prior target of $35.00, while reiterating a “Buy” rating.
Hims & Hers Health, Inc. (NYSE:HIMS)’s revenue excluding its GLP-1 offering went up by 43% YoY to more than $1.2 billion in 2024, meeting its previous 2025 revenue target a year early. Consolidated revenue rose 69% YoY to ~$1.5 billion as the company’s weight loss offering has been providing an accelerant to such trends. This demonstrates the platform’s growing ability to enter new specialties and scale rapidly. Therefore, Hims & Hers Health, Inc. (NYSE:HIMS) continues to focus on building a set of core capabilities that can scale with efficiency.
Cedar Grove Capital Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The point of a hedge fund is to quite literally hedge the portfolio (shocking). When done right, it can be a great strategy to boost returns and reduce the impact of drawdowns as they occur.
While our recent hedge had a great outcome, investing is a constant learning journey, and we recently had a learning lesson with Hims & Hers Health, Inc. (NYSE:HIMS). This wasn’t a learning lesson because we were wrong (we weren’t) but because our view, or lack thereof, of an irrational market, acected our timing.
Below is our shared takeaway. Throughout this year, we’ve been very vocal about HIMS, mainly because it’s our second-largest holding and also because the long-term potential of cash-pay telehealth is immense. The name has done quite well for us, and if you’ve been a paid investor in our research, you know how frequently we update our research and commentary as news headlines come out that could materially alter the long thesis…” (Click here to read the full text)
Overall, HIMS ranks 3rd on our list of most shorted stocks in 2025. While we acknowledge the potential of HIMS as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than HIMS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
