Corient Private Wealth LP Raises Stake in Herbalife Ltd $HLF

Key Points

• Corient Private Wealth LP increased its Herbalife stake by 697.8% in the second quarter, reaching 179,125 shares valued at approximately $2.36 million. Other institutional investors, including Dimensional Fund Advisors and Invenomic Capital Management, also raised their positions.
• Herbalife reported quarterly revenue of $1.33 billion, up 5.4% year over year, but earnings per share of $0.51 missed the $0.54 consensus estimate. The stock recently traded near $12.22, well below its one-year high of $20.40.
• The company authorized a $250 million share buyback, allowing repurchases of up to 19.3% of outstanding shares. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $17.67.

Corient Private Wealth LP lifted its stake in Herbalife Ltd (NYSE:HLF - Free Report) by 697.8% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 179,125 shares of the company's stock after purchasing an additional 156,672 shares during the period. Corient Private Wealth LP owned about 0.17% of Herbalife worth $2,355,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in HLF. Pacer Advisors Inc. purchased a new stake in shares of Herbalife in the first quarter valued at approximately $9,491,000. Bank of New York Mellon Corp purchased a new position in Herbalife during the 2nd quarter valued at about $5,842,000. Dimensional Fund Advisors LP raised its holdings in shares of Herbalife by 29.3% in 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 in the last quarter. Johnson Financial Group LLC raised its holdings in shares of Herbalife by 1,156.1% in the 4th quarter. Johnson Financial Group LLC now owns 414,500 shares of the company's stock valued at $5,343,000 after purchasing an additional 381,500 shares in the last quarter. Finally, Invenomic Capital Management LP lifted its position in shares of Herbalife by 82.6% in the 4th quarter. Invenomic Capital Management LP now owns 768,031 shares of the company's stock worth $9,900,000 after purchasing an additional 347,401 shares during the period.

Herbalife Stock Performance

Herbalife stock opened at $12.22 on Wednesday. The stock has a market cap of $1.28 billion, a PE ratio of 7.88, a price-to-earnings-growth ratio of 0.40 and a beta of 0.85. The stock has a 50-day moving average of $12.19 and a two-hundred day moving average of $13.30. Herbalife Ltd has a one year low of $7.56 and a one year high of $20.40.

Herbalife (NYSE:HLF - Get Free Report) last posted its quarterly earnings data 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). Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same quarter last year, the company earned $0.59 EPS. The business's revenue was up 5.4% compared to the same quarter last year. As a group, sell-side analysts predict that Herbalife Ltd will post 2.68 EPS for the current fiscal year.

Herbalife announced that its board has authorized a stock buyback plan on Tuesday, September 8th that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 19.3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on HLF shares. 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 target on Herbalife in a research report on Thursday, September 17th. Weiss Ratings downgraded Herbalife from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, July 24th. Citigroup reiterated a "buy" rating and issued a $17.00 target price (down from $21.00) on shares of Herbalife in a research note on Friday, August 7th. Finally, Texas Capital upgraded shares of Herbalife to a "strong-buy" rating in a report 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 issued a Hold rating to the stock. According to MarketBeat.com, Herbalife has a consensus rating of "Moderate Buy" and an average target price of $17.67.

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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