Herbalife (NYSE:HLF) Stock Breaks Above Two Hundred Day Moving Average – Should You Sell?

Shares of Herbalife Ltd (NYSE:HLF) crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $13.04 and traded as high as $13.08. Herbalife shares last traded at $13.0250, with a volume of 1,488,607 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Zacks Research raised Herbalife from a “hold” rating to a “strong-buy” rating in a report on Wednesday, September 30th. UBS Group set a $21.00 target price on Herbalife in a research note on Thursday, September 17th. Wall Street Zen downgraded Herbalife from a “buy” rating to a “hold” rating in a report on Sunday, September 27th. Weiss Ratings lowered Herbalife from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, July 24th. Finally, Texas Capital upgraded shares of Herbalife to a “strong-buy” rating in a report on Thursday, September 17th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $17.67.

Herbalife Trading Up 1.6%

The firm has a market cap of $1.37 billion, a price-to-earnings ratio of 8.40, a price-to-earnings-growth ratio of 0.43 and a beta of 0.78. The company’s 50-day moving average is $12.25 and its 200-day moving average is $13.04.

Herbalife (NYSE:HLF) last posted its earnings results on Thursday, August 6th. The company reported $0.51 earnings per share for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.03). Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%. The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same period in the previous year, the firm earned $0.59 earnings per share. The company’s revenue was up 5.4% compared to the same quarter last year. Equities research analysts forecast that Herbalife Ltd will post 2.68 EPS for the current year.

Herbalife declared that its board has authorized a stock buyback program on Tuesday, September 8th that allows the company to buy back $250.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 19.3% of its shares through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Herbalife

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Avaii Wealth Management LLC purchased a new position in Herbalife in the third quarter worth $459,000. Echo45 Advisors LLC purchased a new stake in Herbalife in the third quarter worth $143,000. Miramontes Capital LLC purchased a new position in shares of Herbalife in the second quarter worth about $179,000. Tidal Investments LLC bought a new stake in shares of Herbalife during the 2nd quarter valued at $140,000. Finally, Engineers Gate Manager LP increased its holdings in Herbalife by 154.1% during the 2nd quarter. Engineers Gate Manager LP now owns 202,483 shares of the company’s stock worth $2,663,000 after acquiring an additional 122,788 shares during the period.

Herbalife Company Profile

Herbalife Ltd. (NYSE: HLF) is a global nutrition and wellness company that develops and sells products through a network of independent distributors. Its offerings are designed to support weight management, sports performance, energy, and general well-being.

The company’s product portfolio includes meal-replacement shakes, protein products, dietary supplements, vitamins, teas, hydration products, sports nutrition products, and personal-care items. Herbalife distributes its products in more than 90 countries through direct selling, including person-to-person sales, nutrition clubs, and online channels operated by its independent distributors.

Herbalife was founded in 1980 by Mark Hughes and is headquartered in Los Angeles, California.