Hinge Health Stock (HNGE) Gains 17% in Market Debut on NYSE

The stock of Hinge Health had a successful initial public offering (IPO), with the company’s share price rising 17% in its first day of trading on the New York Stock Exchange (NYSE).

The digital physical therapy company managed to raise $273 million from its IPO and achieved a market capitalization of a little more than $3 billion. The stock of Hinge Health opened at $39.25, up 23% from its IPO price of $32.

The shares ended trading on May 22 up 17% at $37.56 a share. The company sold 8.52 million shares in the offering. Founded in 2014, Hing Health uses software to help patients treat acute musculoskeletal injuries, chronic pain, and carry out rehabilitation remotely.

Wall Street Takes Notice

The San Francisco-based technology company had initially priced its IPO in a range of $28 to $32. Wall Street was closely watching Hinge Health’s debut for signs of investor appetite for new stock listings. The U.S. IPO market has been in the doldrums since the 2022 bear market, but there are hopes that demand for equity offerings will rebound.

Within the digital health sector, the IPO market has largely been dormant over the past three years. Digital health companies, such as Teladoc Health (TDOC), have struggled since the end of the Covid-19 pandemic. Wall Street bankers continue to evaluate demand for IPOs amid market choppiness and ongoing macroeconomic uncertainty.

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 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 33.62% upside from current levels.

Read more analyst ratings on TDOC stock