Why did Progyny stock go down today? New short call from Hedgeye

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• Progyny (NASDAQ:PGNY) slipped 5% amid a new short call from Hedgeye, which sees potential for 20%-30% downside for the fertility firm.
• "While PGNY's growth has been remarkable, the environment of the last 3 years has been exceptionally positive and unlikely to continue," Hedgeye analyst Tom Tobin wrote in a note on Wednesday. "We think there are a number of points in the PGNY model that are vulnerable to the economic slowdown."

• Progyny (PGNY) shares could slip 20%-30% to $22 to $25 a share, according to Hedgeye.

• Progyny (PGNY) short interest is 8.6%.

• Progyny (PGNY) has been the target of short reports in recent months including one from Jehoshaphat Research in December and Spruce Point in February.

Comments

[MUGSLEY]

My guess is the short is predicated on corporate layoffs

[TigerCub911]

Well, I'm planning to buy. I don't have any position yet and the short interest is also not too high. Putting in a buy order at $22.22. We'll see

[lbeachmike]

@TigerCub911 I will surprised if it drops that low. I think that is a bit too pessimistic. I am willing to add to my position in the mid 20s. If macro got that bad, the Fed would begin easing which would boost valuation.

[TigerCub911]

@lbeachmike You might be right but whatever the case may be, it is speculative to begin with, so $25 or $22 won't make too much difference if it can shoot up 10-fold in a few years