Herbalife (NYSE:HLF) Shares Gap Up on Earnings Beat

Herbalife Ltd. (NYSE:HLF)’s stock price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $8.68, but opened at $9.56. Herbalife shares last traded at $9.64, with a volume of 588,702 shares.

The company reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.37 by $0.12. The business had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.26 billion. Herbalife had a net margin of 2.81% and a negative return on equity of 19.56%. The business’s revenue was up 3.8% on a year-over-year basis. During the same quarter last year, the company earned $0.54 EPS.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on HLF shares. DA Davidson decreased their price objective on shares of Herbalife from $11.00 to $9.50 and set a “neutral” rating for the company in a research report on Monday, March 25th. Mizuho lowered their price target on Herbalife from $12.00 to $10.00 and set a “neutral” rating on the stock in a research report on Thursday, March 21st. StockNews.com upgraded shares of Herbalife from a “hold” rating to a “buy” rating in a research report on Friday, February 16th. Finally, Bank of America dropped their price target on Herbalife from $10.00 to $8.00 and set an “underperform” rating for the company in a research report on Thursday, March 21st. One investment analyst has rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, Herbalife currently has an average rating of “Hold” and an average price target of $10.50.

Insider Activity

In other Herbalife news, CEO Michael Johnson purchased 61,725 shares of the firm’s stock in a transaction that occurred on Friday, February 16th. The stock was purchased at an average price of $8.07 per share, for a total transaction of $498,120.75. Following the purchase, the chief executive officer now directly owns 603,707 shares in the company, valued at $4,871,915.49. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, CEO Michael Johnson purchased 61,725 shares of Herbalife stock in a transaction dated Friday, February 16th. The stock was bought at an average cost of $8.07 per share, for a total transaction of $498,120.75. Following the transaction, the chief executive officer now owns 603,707 shares in the company, valued at $4,871,915.49. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Henry C. Wang acquired 2,778 shares of the stock in a transaction that occurred on Tuesday, March 26th. The stock was acquired at an average cost of $9.30 per share, for a total transaction of $25,835.40. Following the completion of the purchase, the executive vice president now owns 176,194 shares in the company, valued at approximately $1,638,604.20. The disclosure for this purchase can be found here. In the last quarter, insiders purchased 85,757 shares of company stock worth $723,278. Corporate insiders own 0.94% of the company’s stock.

Institutional Trading of Herbalife

Institutional investors and hedge funds have recently made changes to their positions in the company. Avaii Wealth Management LLC boosted its position in Herbalife by 14.6% in the 3rd quarter. Avaii Wealth Management LLC now owns 21,792 shares of the company’s stock valued at $305,000 after buying an additional 2,775 shares during the last quarter. Principal Financial Group Inc. lifted its stake in Herbalife by 44.0% in the third quarter. Principal Financial Group Inc. now owns 53,296 shares of the company’s stock valued at $746,000 after buying an additional 16,275 shares during the last quarter. Bronte Capital Management Pty Ltd. grew its holdings in Herbalife by 3.5% in the 3rd quarter. Bronte Capital Management Pty Ltd. now owns 3,121,467 shares of the company’s stock worth $43,669,000 after buying an additional 104,567 shares in the last quarter. Jump Financial LLC raised its position in shares of Herbalife by 230.8% during the 3rd quarter. Jump Financial LLC now owns 67,623 shares of the company’s stock worth $946,000 after buying an additional 47,182 shares in the last quarter. Finally, Swiss National Bank lifted its position in Herbalife by 1.2% in the third quarter. Swiss National Bank now owns 217,472 shares of the company’s stock worth $3,042,000 after purchasing an additional 2,500 shares during the period.

Herbalife Stock Up 8.9 %

The company has a 50 day moving average of $8.79 and a two-hundred day moving average of $11.63. The firm has a market cap of $943.02 million, a P/E ratio of 7.08 and a beta of 1.24.

Herbalife Company Profile

Herbalife Ltd. provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the Asia Pacific. It offers products in the areas of weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature and promotional items.