Herbalife (NYSE:HLF) Upgraded to "Strong-Buy" at Texas Capital

Key Points

• Texas Capital upgraded Herbalife to “strong-buy,” while Wall Street Zen also raised its rating to “buy.” MarketBeat analysts hold an overall “Moderate Buy” consensus with an average price target of $17.67.
• Herbalife shares opened at $11.89, up 1.8%, with a market capitalization of approximately $1.25 billion. The stock trades near the lower end of its 52-week range of $7.56 to $20.40.
• The company authorized a $250 million share-repurchase program, allowing it to buy back up to 19.3% of outstanding shares. Its latest quarterly revenue rose 5.4% year over year to $1.33 billion, though EPS of $0.51 fell short of analyst expectations.

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

A number of other brokerages have also recently issued reports on HLF. Wall Street Zen raised shares of Herbalife from a "hold" rating to a "buy" rating in a report on Saturday. UBS Group set a $21.00 price objective on Herbalife in a research note on Thursday. Weiss Ratings downgraded Herbalife from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, July 24th. Finally, Citigroup reaffirmed a "buy" rating and set a $17.00 price objective (down from $21.00) on shares of Herbalife in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $17.67.

Herbalife Trading Up 1.8%

Shares of NYSE HLF opened at $11.89 on Thursday. The stock has a fifty day simple moving average of $12.21 and a two-hundred day simple moving average of $13.42. Herbalife has a 1-year low of $7.56 and a 1-year high of $20.40. The firm has a market cap of $1.25 billion, a price-to-earnings ratio of 7.67, a price-to-earnings-growth ratio of 0.39 and a beta of 0.85.

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

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

Institutional Trading of Herbalife

Institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its stake in shares of Herbalife by 12.6% in the first quarter. EverSource Wealth Advisors LLC now owns 7,366 shares of the company's stock worth $108,000 after acquiring an additional 822 shares during the period. Optimize Financial Inc increased its stake in shares of Herbalife by 1.5% in the fourth quarter. Optimize Financial Inc now owns 61,426 shares of the company's stock worth $792,000 after purchasing an additional 880 shares in the last quarter. ProShare Advisors LLC raised its holdings in Herbalife by 8.2% during the fourth quarter. ProShare Advisors LLC now owns 18,711 shares of the company's stock valued at $241,000 after acquiring an additional 1,419 shares during the period. Janney Montgomery Scott LLC raised its stake in Herbalife by 2.5% during the 1st quarter. Janney Montgomery Scott LLC now owns 96,330 shares of the company's stock valued at $1,418,000 after purchasing an additional 2,375 shares during the period. Finally, DGS Capital Management LLC lifted its holdings in shares of Herbalife by 3.5% in the first quarter. DGS Capital Management LLC now owns 82,323 shares of the company's stock worth $1,212,000 after buying an additional 2,746 shares in the last quarter.

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, balanced nutrition, energy, sports performance and personal care.

The company's product portfolio includes meal-replacement shakes, protein and fiber products, dietary supplements, vitamins, herbal teas, sports nutrition products and skin- and body-care items. Herbalife distributes its products in markets around the world, including North America, Latin America, Europe, Asia-Pacific and Africa, primarily through direct selling and independent members who provide product information and personalized support to consumers.

Herbalife was founded in 1980 by Mark Hughes and has since expanded from a primarily weight-management business into a broader nutrition and wellness enterprise.

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