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

Key Points

• Wall Street Zen upgraded Herbalife from “hold” to “buy,” joining several analysts who have recently issued bullish ratings. The stock carries a consensus “Moderate Buy” rating with an average price target of $17.67.
• Herbalife shares opened at $13.40 and were down 2.7%, with a $1.40 billion market capitalization. The company’s latest quarterly EPS of $0.51 missed estimates, although revenue rose 5.4% year over year to $1.33 billion.
• The board authorized a $250 million share-repurchase program, allowing the company to buy back up to 19.3% of its outstanding stock—potentially signaling management believes the shares are undervalued.

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 report released on Saturday, Wall Street Zen reports.

Other analysts have also recently issued reports about the company. Zacks Research upgraded Herbalife from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Herbalife in a research note on Thursday. Texas Capital raised Herbalife to a "strong-buy" rating in a research report on Thursday, September 17th. Citigroup reaffirmed a "buy" rating and set a $17.00 price objective (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. Finally, UBS Group set a $21.00 target price on shares of Herbalife in a report on Thursday, September 17th. Two 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 data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $17.67.

Herbalife Trading Down 2.7%

NYSE:HLF opened at $13.40 on Friday. The stock has a market capitalization of $1.40 billion, a PE ratio of 6.56, a P/E/G ratio of 0.46 and a beta of 0.78. Herbalife has a 1-year low of $7.56 and a 1-year high of $20.40. The firm has a fifty day simple moving average of $12.62 and a 200 day simple moving average of $13.00.

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

Herbalife announced that its Board of Directors has authorized a share repurchase program on Tuesday, September 8th that authorizes the company to repurchase $250.00 million in shares. This repurchase authorization authorizes the company to buy up to 19.3% of its stock through open market purchases. Share repurchase programs are often an indication that the company's board believes its stock is undervalued.

Institutional Trading of Herbalife

Several large investors have recently made changes to their positions in the stock. Signaturefd LLC increased its position in shares of Herbalife by 135.1% during the 3rd quarter. Signaturefd LLC now owns 2,222 shares of the company's stock worth $27,000 after purchasing an additional 1,277 shares in the last quarter. CWA Asset Management Group LLC bought a new stake in shares of Herbalife in the 3rd quarter valued at about $1,052,000. SummerHaven Investment Management LLC boosted its stake in Herbalife by 3.6% during the 3rd quarter. SummerHaven Investment Management LLC now owns 77,769 shares of the company's stock worth $943,000 after acquiring an additional 2,700 shares during the last quarter. State of Alaska Department of Revenue grew its holdings in shares of Herbalife by 39.4% in the 3rd quarter. State of Alaska Department of Revenue now owns 18,246 shares of the company's stock valued at $220,000 after buying an additional 5,156 shares during the period. Finally, Avaii Wealth Management LLC acquired a new stake in shares of Herbalife in the 3rd quarter valued at about $459,000.

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.

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