Jim Cramer Says Hims & Hers is a “Very Hard Stock to Own”

Hims & Hers Health, Inc. (NYSE:HIMS) is one of the stocks Jim Cramer recently talked about. A caller asked whether the stock is overvalued and if they should sell their position or consider buying more during the pullback. In response, Cramer said:

“It’s what I call football stock. I mean, there’s just every day there’s a short crushing it or a long bull in it. I think it’s a very hard stock to own. So, therefore, I say find an easier one. This one is too tough.”

A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels

Hims & Hers Health, Inc. (NYSE:HIMS) runs a telehealth platform and provides prescription and non-prescription health and wellness products through its websites and mobile app. Cramer discussed the stock in the episode aired on June 25, as he commented:

“No matter how much you love these speculative winners, you don’t have a gain until you actually ring the register. At the end of last week, for example, Hims & Hers Health, the online healthcare company, was trading at $64. But then yesterday, the stock fell 22 bucks for an almost 35% decline… What I care about is that this stock… [has] almost tripled in two months. If you owned Hims & Hers up almost 200% and you hadn’t sold any at that point, you were being a knucklehead.

Why? Because this is one of the most heavily shorted stocks in the market. 35% of the shares sold short. A lot of people have been betting against it. The haters are plentiful. In that situation, the stock can erupt on any good news. And there was a lot of good news when HIMS was making money with the Wegovy deal.

But a lot of those gains came on the backs of the short sellers who were forced to cover or buy back the shares they sold short because they couldn’t take the pain. That’s why when a stock goes up that fast and there’s a big short position, you gotta generate some discipline here.”

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Disclosure: None. This article is originally published at Insider Monkey.