Herbalife (NYSE:HLF) Shares Down 6.4% - Here's What Happened

Key Points

• Herbalife shares fell 6.4% on Tuesday, trading as low as $12.38 after closing at $13.10, with volume well below average.
• Analysts remain cautious overall: Royal Bank of Canada cut its price target to $16, and the stock now carries a consensus rating of “Hold” with an average price target of $17.80.
• Recent fundamentals were mixed, as Herbalife beat Q1 earnings and revenue estimates, but insiders have sold shares in recent months, including notable sales by Frank Lamberti and COO Troy Hicks.

Herbalife Ltd (NYSE:HLF - Get Free Report)'s stock price fell 6.4% on Tuesday . The stock traded as low as $12.38 and last traded at $12.26. 648,604 shares changed hands during trading, a decline of 58% from the average daily volume of 1,561,391 shares. The stock had previously closed at $13.10.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Royal Bank Of Canada decreased their price target on shares of Herbalife from $17.00 to $16.00 and set a "sector perform" rating for the company in a research report on Tuesday, April 28th. Wall Street Zen raised Herbalife from a "buy" rating to a "strong-buy" rating in a research report on Saturday, April 18th. Weiss Ratings raised Herbalife from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, June 15th. Zacks Research downgraded Herbalife from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th. Finally, Mizuho set a $17.00 target price on Herbalife in a research note on Monday, May 4th. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $17.80.

Herbalife Stock Down 5.7%

The firm has a market capitalization of $1.28 billion, a PE ratio of 5.40, a P/E/G ratio of 0.78 and a beta of 0.86. The firm's 50 day moving average price is $12.62 and its two-hundred day moving average price is $14.79.

Herbalife (NYSE:HLF - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.64 earnings per share for the quarter, beating analysts' consensus estimates of $0.61 by $0.03. Herbalife had a net margin of 4.67% and a negative return on equity of 41.47%. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period last year, the business earned $0.59 EPS. The business's revenue was up 7.8% on a year-over-year basis. On average, sell-side analysts anticipate that Herbalife Ltd will post 2.47 earnings per share for the current fiscal year.

Insider Transactions at Herbalife

In related news, insider Frank Lamberti sold 134,982 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $13.50, for a total value of $1,822,257.00. Following the completion of the transaction, the insider owned 36,624 shares of the company's stock, valued at approximately $494,424. This represents a 78.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Troy Hicks sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $12.32, for a total value of $123,200.00. Following the sale, the chief operating officer owned 9,706 shares of the company's stock, valued at approximately $119,577.92. This trade represents a 50.75% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 191,296 shares of company stock worth $2,551,678. Corporate insiders own 5.13% of the company's stock.

Hedge Funds Weigh In On Herbalife

A number of institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Herbalife during the fourth quarter worth approximately $32,000. KBC Group NV acquired a new stake in Herbalife in the first quarter valued at $44,000. EverSource Wealth Advisors LLC boosted its stake in Herbalife by 512.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 6,544 shares of the company's stock valued at $84,000 after acquiring an additional 5,476 shares during the last quarter. Advisory Services Network LLC bought a new position in Herbalife during the 3rd quarter valued at $65,000. Finally, New York State Teachers Retirement System bought a new position in Herbalife during the 4th quarter valued at $119,000.

About Herbalife

Herbalife Nutrition Ltd. NYSE: HLF operates as a global multi-level marketing company specializing in weight-management, nutritional supplement, sports nutrition and personal care products. Its portfolio includes protein shakes, vitamins, energy and fitness supplements, hydration products and skin and hair care items, all formulated to support wellness, performance and healthy living. Products are manufactured in GMP-certified facilities to ensure consistent quality and safety standards.

Founded in 1980 by Mark R.

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