Herbalife (NYSE:HLF) Trading Down 4.2% - Should You Sell?

Key Points

• Herbalife's share price dropped by 4.2% during Monday's trading to a low of $9.23, significantly below the previous closing price of $9.61.
• An average target price for Herbalife shares is currently $11.50, with consensus ratings ranging from "hold" to "buy" across various analysts.
• In recent insider trading activity, Director Juan Miguel Mendoza purchased 5,000 shares at an average cost of $6.75 per share, increasing his ownership in the company.

Herbalife Ltd (NYSE:HLF - Get Free Report) fell 4.2% on Monday . The stock traded as low as $9.23 and last traded at $9.21. 364,115 shares changed hands during trading, a decline of 83% from the average session volume of 2,175,417 shares. The stock had previously closed at $9.61.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on HLF. Mizuho lifted their price target on Herbalife from $8.00 to $9.00 and gave the company a "neutral" rating in a research report on Monday, July 28th. Wall Street Zen downgraded Herbalife from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 10th. Finally, Citigroup dropped their target price on Herbalife from $13.00 to $11.00 and set a "buy" rating on the stock in a report on Thursday, May 1st. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Herbalife presently has a consensus rating of "Moderate Buy" and a consensus price target of $11.50.

Herbalife Price Performance

The company has a 50 day moving average price of $9.24 and a two-hundred day moving average price of $8.03. The stock has a market cap of $1.00 billion, a PE ratio of 3.07, a PEG ratio of 0.28 and a beta of 0.85.

Herbalife (NYSE:HLF - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.06. Herbalife had a negative return on equity of 27.36% and a net margin of 6.59%.The firm had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.27 billion. During the same quarter in the previous year, the business earned $0.54 earnings per share. The company's revenue was down 1.7% on a year-over-year basis. As a group, equities analysts predict that Herbalife Ltd will post 1.57 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of HLF. FNY Investment Advisers LLC purchased a new stake in Herbalife during the second quarter valued at $29,000. Caitong International Asset Management Co. Ltd increased its position in Herbalife by 4,406.4% during the first quarter. Caitong International Asset Management Co. Ltd now owns 4,912 shares of the company's stock valued at $42,000 after acquiring an additional 4,803 shares during the last quarter. CWM LLC increased its position in Herbalife by 199.7% during the first quarter. CWM LLC now owns 7,969 shares of the company's stock valued at $69,000 after acquiring an additional 5,310 shares during the last quarter. Bridgefront Capital LLC purchased a new stake in Herbalife during the fourth quarter valued at $71,000. Finally, Vanguard Personalized Indexing Management LLC purchased a new stake in Herbalife during the second quarter valued at $103,000.

Herbalife Company Profile

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.