Hinge Health (NYSE:HNGE) Shares Up 9.5% After Strong Earnings

Key Points

• Strong quarterly results drove the rally: Hinge Health reported $0.59 in earnings per share, well above the $0.28 consensus estimate, while revenue rose 53% year over year to $212.8 million. Shares climbed 9.5% to about $87.
• Growth outlook remains positive: Management projected third-quarter revenue of $223 million to $225 million, above analyst expectations of roughly $211 million. The company also agreed to acquire Cylinder Health for $105 million in cash to expand into virtual gastrointestinal care.
• Risks and sentiment remain mixed: Analysts maintain a “Moderate Buy” consensus with a $90.73 average price target, but Hinge Health continues to post a negative net margin and return on equity, while significant insider selling and acquisition-integration risks warrant attention.

Shares of Hinge Health Inc. (NYSE:HNGE - Get Free Report) traded up 9.5% during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $87.36 and last traded at $86.97. Approximately 1,235,878 shares traded hands during trading, a decline of 18% from the average session volume of 1,498,308 shares. The stock had previously closed at $79.42.

The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.31. The company had revenue of $212.82 million for the quarter. Hinge Health had a negative return on equity of 310.62% and a negative net margin of 78.95%.Hinge Health's revenue for the quarter was up 53.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.59 earnings per share.

More Hinge Health News

Here are the key news stories impacting Hinge Health this week:

• Positive Sentiment: Strong second-quarter performance: Hinge Health reported $212.8 million in revenue, up 53% year over year, and earnings of $0.59 per share. That exceeded the $0.28 consensus estimate cited by MarketBeat, although Zacks characterized the result as in line with its own consensus. The company also said free cash flow more than tripled from the prior year. Hinge Health reports record second-quarter 2026 financial results
• Positive Sentiment: Above-consensus third-quarter outlook: Management forecast third-quarter revenue of $223 million to $225 million, well above the roughly $211 million analyst consensus. The guidance reinforces expectations for continued strong growth. Hinge Health earnings conference call
• Positive Sentiment: Analyst target raised: Needham increased its price target from $76 to $97 and assigned a “Buy” rating, implying substantial upside from recent trading levels. Benzinga analyst update
• Positive Sentiment: Expansion into gastrointestinal care: Hinge Health agreed to acquire Cylinder Health for $105 million in cash. The deal is intended to add a virtual-first GI Care Program to its existing musculoskeletal and migraine offerings, expanding its addressable market. Hinge Health to acquire Cylinder Health
• Neutral Sentiment: CEO Daniel Perez’s earnings interview and the Q2 earnings call provide additional detail on the company’s operating performance, strategy and outlook. Daniel Perez Hinge Health CEO interview
• Negative Sentiment: Profitability remains a risk: Despite the quarterly EPS beat, Hinge Health continues to report a negative net margin and negative return on equity. The $105 million all-cash acquisition also creates execution and integration risks.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on HNGE shares. Wall Street Zen cut shares of Hinge Health from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 6th. Citizens Jmp raised their price objective on Hinge Health from $80.00 to $96.00 and gave the company a "market outperform" rating in a research report on Monday, July 27th. Robert W. Baird boosted their target price on Hinge Health from $55.00 to $65.00 and gave the stock a "neutral" rating in a report on Wednesday, June 17th. Royal Bank Of Canada restated an "outperform" rating and set a $110.00 price target on shares of Hinge Health in a report on Wednesday. Finally, Citigroup reaffirmed an "outperform" rating on shares of Hinge Health in a research report on Monday, July 27th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $90.73.

Insiders Place Their Bets

In related news, major shareholder Insight Holdings Group, Llc sold 181,499 shares of the stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $90.20, for a total transaction of $16,371,209.80. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, President James Pursley sold 33,000 shares of the company's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $69.31, for a total transaction of $2,287,230.00. Following the transaction, the president owned 740,897 shares in the company, valued at $51,351,571.07. This represents a 4.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 3,766,556 shares of company stock valued at $290,713,052. Corporate insiders own 18.92% of the company's stock.

Institutional Investors Weigh In On Hinge Health

Hedge funds have recently added to or reduced their stakes in the stock. BIT Capital GmbH grew its holdings in shares of Hinge Health by 79.3% in the fourth quarter. BIT Capital GmbH now owns 3,316,101 shares of the company's stock worth $154,033,000 after acquiring an additional 1,466,577 shares during the period. Vanguard Group Inc. boosted its position in Hinge Health by 110.5% in the fourth quarter. Vanguard Group Inc. now owns 2,605,532 shares of the company's stock worth $121,027,000 after purchasing an additional 1,367,693 shares during the last quarter. Tiger Global Management LLC grew its stake in shares of Hinge Health by 227.1% during the 4th quarter. Tiger Global Management LLC now owns 1,805,751 shares of the company's stock valued at $83,877,000 after purchasing an additional 1,253,743 shares during the period. Marshall Wace LLP purchased a new stake in shares of Hinge Health during the 4th quarter valued at about $54,469,000. Finally, Millennium Management LLC lifted its stake in shares of Hinge Health by 225.0% in the 4th quarter. Millennium Management LLC now owns 1,479,642 shares of the company's stock worth $68,729,000 after purchasing an additional 1,024,317 shares during the period.

Hinge Health Stock Up 9.5%

The business's fifty day moving average is $74.52 and its 200-day moving average is $54.18. The company has a market cap of $6.73 billion, a PE ratio of -7.05 and a beta of 1.30.

About Hinge Health

Hinge Health NYSE: HNGE is a digital musculoskeletal (MSK) clinic that provides end-to-end solutions for the prevention and management of musculoskeletal conditions. The company's platform combines wearable motion sensors, personalized exercise therapy guided by licensed physical therapists, and behavioral health coaching to deliver tailored treatment plans. By integrating technology with evidence-based clinical protocols, Hinge Health aims to reduce pain, improve mobility and decrease reliance on more invasive interventions such as surgery or opioid prescriptions.

Founded in 2015 and headquartered in San Francisco, Hinge Health partners with employers, health plans and other payers to offer its self-directed, app-based programs.

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