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HIMS Dark Pool Activity

DAN WRITES THIS PART

HIMS Stock Analysis

Hims and Hers Health Inc (NYSE:HIMS) is an American telehealth company that also operates as an online pharmacy which sells prescriptions and over the counter products. The company went public through a SPAC merger with Oaktree Acquisition, and has become a popular stock amongst the meme investor crowd on sites like Reddit. I’m not here to say that HIMS is a bad company, but often when short squeezes happen it separates the stock price from the underlying fundamentals of the company. 

HIMS advertises itself as the very first digitally native, fully vertical medical platform, which provides integrated care from start to finish. What does that mean? You can get complete healthcare from diagnosis to prescription treatments all in the same platform. Sounds great! HIMS products operate in four main markets: erectile dysfunction, hair loss, dermatology, and anxiety and depression. Between those four product markets, HIMS estimates a total market size worth $65 billion. 

Its financials are impressive too thus far, with a 136% CAGR in revenue from 2018 to 2020, and a 275% CAGR in gross margins during the same period. So how has the stock responded? Meme investors took shares for a ride in early February when HIMS reached an all-time high price of $25.40 per share. Since then the stock has been in steady decline, currently trading at just over $9.00 per share, which is well below both the 50-day and 200-day moving averages, a bearish indicator.

HIMS Trading Activity

Recently HIMS was rejected at a resistance level of around $14.25 and has been hammered back down through previous support levels to its current trading price. In terms of how market sentiment is viewing the stock, HIMS has seven consecutive red candle weeks, which is about as bearish as you can get. Obviously the initial popularity of the stock has worn off, and like with many meme stocks, there are some investors that were left holding some hefty bags. 

Can another short squeeze happen with HIMS? According to Yahoo Finance, the short ratio currently sits at 11.68%, which isn’t really considered a high enough percentage for a short squeeze to take place. The one good thing about HIMS at its current valuation, is that it is only trading at a multiple of about 10 times revenue which is surprisingly reasonable for a company that has gained the reputation of being a meme stock. It’s also trading below its $10.00 NAV price for the SPAC merger, so HIMS looks like it is nearing oversold territory.

Dark Pool Charts $HIMS

When you are looking at meme stocks, it is especially important to check out the dark pool activity to see how the smart money is trading the stock. $HIMS may have a bright future as a telehealth provider, but until it can stabilize after the short squeeze, the stock may see increased volatility. 

All that being said, you can now see why using specific dark pool data can be invaluable to your trading or investing process. If you are a long term investor, watching the activity on dark pool charts can alert you to opportunities to buy and sell. However, it should be only one factor in your decision making process.

Mastering the charts will give you a serious edge over other retail traders or investors. As far as software goes, FlowTrade is the ultimate smart money algorithm that can provide real time dark pool data and flow. The best part about it is the fact you only need to look visually to understand what is going on. No heavy calculations need to be done, the software does it all.

The intuitive user-friendly platform allows you to track four different stocks simultaneously on your computer or mobile phone, with plenty of scanners and even the ability to draw your own stock charts. Try a free 7-day trial today and see why Dark Pool Charts is the best way to track the smart money and see where that flow is heading before anyone else on the market!

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