Herbalife (NYSE:HLF) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Herbalife (NYSE:HLF) has been downgraded from a "strong-buy" to a "buy" rating by analysts at Wall Street Zen, reflecting a shift in market sentiment.
• The company reported earnings of $0.59 per share, exceeding analysts' expectations, but revenue of $1.26 billion fell short of estimates by $40 million.
• Insider trading activity includes Director Juan Miguel Mendoza purchasing 5,000 shares at an average price of $6.75, increasing his holdings in the company.

Herbalife (NYSE:HLF - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Sunday.

HLF has been the subject of a number of other reports. Mizuho boosted their price target on shares of Herbalife from $8.00 to $9.00 and gave the stock a "neutral" rating in a research note on Monday, July 28th. Citigroup lowered their price objective on shares of Herbalife from $13.00 to $11.00 and set a "buy" rating for the company in a research report on Thursday, May 1st. One equities research analyst has rated the stock with a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $11.50.

Herbalife Trading Up 3.2%

Shares of HLF stock opened at $8.90 on Friday. Herbalife has a 1 year low of $5.04 and a 1 year high of $10.83. The firm's 50 day moving average is $8.94 and its 200-day moving average is $7.78. The firm has a market capitalization of $906.47 million, a price-to-earnings ratio of 2.81, a PEG ratio of 0.26 and a beta of 0.85.

Herbalife (NYSE:HLF - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.53 by $0.06. Herbalife had a net margin of 6.59% and a negative return on equity of 25.91%. The company had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period in the prior year, the business earned $0.54 earnings per share. Herbalife's quarterly revenue was down 1.7% on a year-over-year basis. On average, equities research analysts forecast that Herbalife will post 1.57 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Herbalife news, Director Juan Miguel Mendoza bought 5,000 shares of Herbalife stock in a transaction that occurred on Thursday, May 22nd. The stock was acquired at an average price of $6.75 per share, for a total transaction of $33,750.00. Following the completion of the acquisition, the director owned 166,857 shares of the company's stock, valued at $1,126,284.75. This trade represents a 3.09% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders own 1.73% of the company's stock.

Institutional Trading of Herbalife

Large investors have recently added to or reduced their stakes in the company. Quadrant Capital Group LLC lifted its stake in Herbalife by 641.5% in the fourth quarter. Quadrant Capital Group LLC now owns 4,293 shares of the company's stock valued at $29,000 after acquiring an additional 3,714 shares during the last quarter. FNY Investment Advisers LLC bought a new position in shares of Herbalife in the second quarter valued at about $29,000. Caitong International Asset Management Co. Ltd raised its position in shares of Herbalife by 4,406.4% in the first quarter. Caitong International Asset Management Co. Ltd now owns 4,912 shares of the company's stock valued at $42,000 after purchasing an additional 4,803 shares during the period. CWM LLC raised its position in shares of Herbalife by 199.7% in the first quarter. CWM LLC now owns 7,969 shares of the company's stock valued at $69,000 after purchasing an additional 5,310 shares during the period. Finally, Bridgefront Capital LLC bought a new position in shares of Herbalife in the fourth quarter valued at about $71,000.

About Herbalife

Herbalife Ltd. provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the Asia Pacific. It offers products in the areas of weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature and promotional items.

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