Herbalife (NYSE:HLF) Stock Rating Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Herbalife from “hold” to “buy.” Across analysts, the stock has a “Moderate Buy” consensus rating and an average price target of $17.67.
• Herbalife reported quarterly EPS of $0.64, topping the $0.62 estimate, and revenue of $1.35 billion, above expectations; revenue rose 3.9% year over year.
• The board authorized a $250 million share repurchase plan, allowing the company to buy back up to 19.3% of its outstanding shares.

Herbalife (NYSE:HLF - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Monday, Wall Street Zen reports.

HLF has been the subject of several other reports. Texas Capital raised Herbalife to a "strong-buy" rating in a research report on Thursday, September 17th. Citigroup reissued a "buy" rating and issued a $17.00 target price (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. UBS Group set a $21.00 target price on Herbalife in a research note on Thursday, September 17th. Weiss Ratings raised Herbalife from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday. Finally, Zacks Research cut shares of Herbalife from a "strong-buy" rating to a "hold" rating in a research note on Thursday, October 29th. One 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 company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $17.67.

Herbalife Stock Up 0.0%

Shares of HLF stock opened at $15.29 on Monday. Herbalife has a 12-month low of $8.50 and a 12-month high of $20.40. The firm has a fifty day moving average of $12.92 and a 200-day moving average of $13.96. The company has a market capitalization of $1.60 billion, a price-to-earnings ratio of 9.10, a P/E/G ratio of 0.48 and a beta of 0.74.

Herbalife (NYSE:HLF - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.62 by $0.02. The business had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.31 billion. Herbalife had a net margin of 3.41% and a negative return on equity of 52.54%. The firm's revenue was up 3.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.50 EPS. On average, equities analysts expect that Herbalife will post 2.68 EPS for the current year.

Herbalife declared that its Board of Directors has authorized a stock buyback plan on Tuesday, September 8th that authorizes the company to repurchase $250 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 19.3% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Herbalife

A number of large investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership lifted its stake in shares of Herbalife by 11.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,596,795 shares of the company's stock worth $38,225,000 after buying an additional 267,539 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Herbalife by 29.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,877,717 shares of the company's stock valued at $27,638,000 after purchasing an additional 425,968 shares during the last quarter. Pacer Advisors Inc. acquired a new position in Herbalife during the 1st quarter worth approximately $9,491,000. Bank of New York Mellon Corp acquired a new position in Herbalife in the 2nd quarter worth about $5,842,000. Finally, Squarepoint Ops LLC increased its stake in shares of Herbalife by 39.4% in the second quarter. Squarepoint Ops LLC now owns 428,376 shares of the company's stock valued at $5,633,000 after buying an additional 121,026 shares during the period.

About Herbalife

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.

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