Herbalife (NYSE:HLF) Stock Rating Lowered by Wall Street Zen

Herbalife (NYSE:HLF) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Sunday, Wall Street Zen reports.

Several other equities research analysts also recently issued reports on the stock. Citigroup restated a “buy” rating and issued a $17.00 price objective (down from $21.00) on shares of Herbalife in a research note on Friday, August 7th. Weiss Ratings restated a “hold (c)” rating on shares of Herbalife in a research report on Thursday, October 22nd. UBS Group set a $21.00 target price on Herbalife in a research report on Thursday, September 17th. Zacks Research lowered Herbalife from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 29th. Finally, Texas Capital raised shares of Herbalife to a “strong-buy” rating in a research note on Thursday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Herbalife has a consensus rating of “Moderate Buy” and an average price target of $17.67.

Herbalife Trading Up 2.7%

Shares of NYSE:HLF opened at $13.41 on Friday. The company has a fifty day simple moving average of $12.73 and a 200 day simple moving average of $13.99. The firm has a market cap of $1.41 billion, a PE ratio of 6.37, a price-to-earnings-growth ratio of 0.44 and a beta of 0.78. Herbalife has a 12-month low of $7.68 and a 12-month high of $20.40.

Herbalife (NYSE:HLF) last posted its earnings results on Monday, November 2nd. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.62 by $0.02. Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%. The firm had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.31 billion. During the same period last year, the firm earned $0.50 EPS. The firm’s revenue was up 3.9% compared to the same quarter last year. As a group, equities research analysts forecast that Herbalife will post 2.68 EPS for the current fiscal year.

Herbalife announced that its board has approved a stock buyback plan on Tuesday, September 8th that permits the company to repurchase $250 million in outstanding shares. This buyback authorization permits the company to reacquire up to 19.3% of its shares through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Squarepoint Ops LLC increased its position in Herbalife by 39.4% during the 2nd quarter. Squarepoint Ops LLC now owns 428,376 shares of the company’s stock valued at $5,633,000 after purchasing an additional 121,026 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Herbalife in the 2nd quarter worth $1,372,000. Bank of New York Mellon Corp bought a new position in shares of Herbalife during the 2nd quarter valued at about $5,842,000. Engineers Gate Manager LP lifted its stake in shares of Herbalife by 154.1% in the 2nd quarter. Engineers Gate Manager LP now owns 202,483 shares of the company’s stock valued at $2,663,000 after purchasing an additional 122,788 shares during the last quarter. Finally, Corient Private Wealth LP grew its holdings in shares of Herbalife by 697.8% in the second quarter. Corient Private Wealth LP now owns 179,125 shares of the company’s stock worth $2,355,000 after purchasing an additional 156,672 shares during the last quarter.

Herbalife News Summary

Here are the key news stories impacting Herbalife this week:

• Positive Sentiment: Herbalife reported third-quarter net sales of approximately $1.35 billion, representing 6.0% growth and the company’s fifth consecutive quarter of expansion. Management also highlighted strong profitability and robust operating cash flow, supporting plans to return capital to shareholders. Herbalife Achieves Third Quarter Net Sales Growth
• Positive Sentiment: Quarterly earnings were $0.64 per share, up from $0.50 a year earlier, while revenue increased 3.9% in the company’s reported comparison. One analyst consensus cited by MarketBeat was $0.62 per share, implying a modest earnings beat, and revenue exceeded its $1.31 billion estimate. Herbalife Quarterly Earnings Report
• Positive Sentiment: The earnings update indicates continued progress in sales, profitability and cash generation. Those trends may reinforce the investment case for HLF, which trades at a relatively low reported price-to-earnings ratio of about 6.4. Herbalife Reports Third-Quarter Results and Leadership Changes

Herbalife Company Profile

Herbalife Ltd. (NYSE: HLF) is a global nutrition and wellness company that develops and distributes products through a network of independent members and distributors. Its offerings include meal-replacement shakes, protein and other dietary supplements, vitamins, sports nutrition products, and personal-care items.

Founded in 1980 by Mark Hughes, Herbalife sells its products through direct-selling channels rather than primarily through traditional retail stores. Independent distributors market the products, provide product guidance, and may operate nutrition clubs or similar community-based businesses.

The company serves customers across numerous markets in North America, Latin America, Europe, Asia-Pacific, and other regions.