Herbalife (NYSE:HLF) Shares Down 4.2% - Time to 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)'s share price fell 4.2% during trading on Monday . The company traded as low as $9.23 and last traded at $9.21. 364,115 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 2,175,417 shares. The stock had previously closed at $9.61.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on HLF shares. Mizuho upped their target price on Herbalife from $8.00 to $9.00 and gave the stock a "neutral" rating in a research report on Monday, July 28th. Wall Street Zen downgraded shares of Herbalife from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 10th. Finally, Citigroup dropped their price objective on shares of Herbalife from $13.00 to $11.00 and set a "buy" rating on the stock in a research note on Thursday, May 1st. One research analyst has rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, Herbalife presently has a consensus rating of "Moderate Buy" and an average target price of $11.50.

Herbalife Price Performance

The firm has a market cap of $946.55 million, a P/E ratio of 2.90, a P/E/G ratio of 0.29 and a beta of 0.85. The company has a fifty day moving average of $9.11 and a 200-day moving average of $7.91.

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

Insider Transactions at Herbalife

In other Herbalife news, Director Juan Miguel Mendoza bought 5,000 shares of the stock in a transaction dated Thursday, May 22nd. The shares were bought at an average cost of $6.75 per share, for a total transaction of $33,750.00. Following the purchase, the director directly owned 166,857 shares of the company's stock, valued at approximately $1,126,284.75. This trade represents a 3.09% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.73% of the stock is owned by company insiders.

Institutional Trading of Herbalife

A number of institutional investors have recently added to or reduced their stakes in HLF. Jump Financial LLC increased its stake in Herbalife by 374.1% in the 4th quarter. Jump Financial LLC now owns 165,300 shares of the company's stock worth $1,106,000 after acquiring an additional 130,433 shares during the last quarter. Boothbay Fund Management LLC bought a new position in shares of Herbalife in the fourth quarter worth approximately $251,000. Northern Trust Corp raised its stake in Herbalife by 14.5% in the fourth quarter. Northern Trust Corp now owns 1,002,676 shares of the company's stock valued at $6,708,000 after purchasing an additional 126,902 shares in the last quarter. Readystate Asset Management LP grew its stake in Herbalife by 748.1% in the 1st quarter. Readystate Asset Management LP now owns 114,495 shares of the company's stock worth $988,000 after buying an additional 100,995 shares in the last quarter. Finally, Marshall Wace LLP grew its stake in Herbalife by 83.8% in the 4th quarter. Marshall Wace LLP now owns 1,444,343 shares of the company's stock worth $9,663,000 after buying an additional 658,536 shares in the last quarter.

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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