Hinge Health has priced its initial public offering (IPO) at $32 per share, which is the top end of the expected range on Wall Street.
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The digital physical therapy start-up company sold 8.52 million shares as part of the IPO, raising $273 million in the process. The stock will begin trading on the New York Stock Exchange under the ticker symbol “HNGE” today (May 22). The company hoped to sell its shares in a price range of $28 to $32.
At the IPO price, Hinge Health is worth about $2.60 billion, making it a small-cap stock defined as any security with a market capitalization of less than $10 billion. The company’s valuation is down from $6.20 billion in 2021 during the company’s last private funding round.
Digital Health
Hinge Health uses software to help treat acute musculoskeletal injuries, chronic pain, and carry out post-surgery rehabilitation with patients remotely. It competes against other digital health concerns such as Teladoc Health (TDOC) and Hims & Hers Health (HIMS).
The company’s revenue in this year’s first quarter increased 50% to $123.8 million from $82.7 million a year ago. Hinge Health also reported net income for the period of $17.1 million, rising from a loss of -$26.5 million a year ago.
Hinge Health’s IPO is the most notable one by a digital health provider since 2021. Digital health companies have struggled coming out of the Covid-19 pandemic. Prior to its IPO, Hinge Health raised more than $1 billion from investors.
Is HNGE Stock a Buy?
It is too early for analysts to have ratings and price targets on Hinge Health stock. So instead we’ll look at rival Teladoc Health. TDOC stock has a consensus Hold rating among 21 Wall Street analysts. That rating is based on five Buy and 16 Hold ratings issued in the last 12 months. The average TDOC price target of $9.22 implies 32.28% upside from current levels.
Read more analyst ratings on TDOC stock
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