Herbalife (NYSE:HLF) Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Herbalife to “strong buy” from “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $17.67.
• Herbalife shares opened at $12.25, with a market capitalization of $1.28 billion and a 12-month trading range of $7.56 to $20.40.
• The company authorized a $250 million stock repurchase program, allowing it to buy back up to 19.3% of its outstanding shares, despite its latest quarterly EPS missing estimates by $0.03.

Herbalife (NYSE:HLF - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday, Zacks reports.

Several other brokerages also recently weighed in on HLF. UBS Group set a $21.00 target price on shares of Herbalife in a research note on Thursday, September 17th. Citigroup restated a "buy" rating and issued a $17.00 price target (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. Texas Capital raised Herbalife to a "strong-buy" rating in a research note on Thursday, September 17th. Weiss Ratings downgraded Herbalife from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, July 24th. Finally, Wall Street Zen lowered Herbalife from a "buy" rating to a "hold" rating in a report on Sunday, September 27th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $17.67.

Herbalife Price Performance

Shares of Herbalife stock opened at $12.25 on Wednesday. The firm's fifty day simple moving average is $12.21 and its 200-day simple moving average is $13.13. The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of 7.90, a PEG ratio of 0.40 and a beta of 0.78. Herbalife has a 12 month low of $7.56 and a 12 month high of $20.40.

Herbalife (NYSE:HLF - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.51 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.03). Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. The business had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.31 billion. During the same quarter last year, the company earned $0.59 EPS. The firm's revenue for the quarter was up 5.4% compared to the same quarter last year. Analysts anticipate that Herbalife will post 2.68 earnings per share for the current year.

Herbalife announced that its Board of Directors has approved a stock repurchase program on Tuesday, September 8th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 19.3% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On Herbalife

Several institutional investors have recently modified their holdings of HLF. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Herbalife in the second quarter valued at $1,372,000. Squarepoint Ops LLC boosted its position in shares of Herbalife by 39.4% in the 2nd quarter. Squarepoint Ops LLC now owns 428,376 shares of the company's stock worth $5,633,000 after buying an additional 121,026 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Herbalife in the 2nd quarter worth about $5,842,000. Inspire Investing LLC grew its stake in Herbalife by 291.2% in the 1st quarter. Inspire Investing LLC now owns 141,277 shares of the company's stock valued at $2,080,000 after acquiring an additional 105,160 shares during the last quarter. Finally, Principal Financial Group Inc. acquired a new stake in Herbalife in the 1st quarter valued at about $1,809,000.

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.

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