Herbalife (NYSE:HLF) Stock Price Up 5.7% - Still a Buy?

Key Points

• Herbalife's shares increased by 5.7% to a last trading price of $9.69, though trading volume was notably lower than average at 286,029 shares.
• Analysts have mixed views on the stock, with Citigroup lowering its price target to $11.00 and giving it a "buy" rating, while other firms have varying ratings, resulting in a consensus rating of "Moderate Buy" with a target price of $11.50.
• Herbalife reported $1.26 billion in revenue for the last quarter, slightly below analyst expectations, but its earnings per share beat estimates at $0.59.

Herbalife Ltd (NYSE:HLF - Get Free Report) was up 5.7% during mid-day trading on Tuesday . The stock traded as high as $9.84 and last traded at $9.69. Approximately 286,029 shares traded hands during mid-day trading, a decline of 87% from the average daily volume of 2,168,848 shares. The stock had previously closed at $9.17.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on HLF shares. Wall Street Zen downgraded Herbalife from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 10th. Citigroup cut their target price on Herbalife from $13.00 to $11.00 and set a "buy" rating on the stock in a research report on Thursday, May 1st. Finally, Mizuho upped their target price on Herbalife from $8.00 to $9.00 and gave the company a "neutral" rating in a research report on Monday, July 28th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $11.50.

Herbalife Trading Up 5.9%

The firm has a 50-day simple moving average of $9.24 and a two-hundred day simple moving average of $8.01. The company has a market capitalization of $1.00 billion, a price-to-earnings ratio of 3.07, a P/E/G ratio of 0.28 and a beta of 0.85.

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 business 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 company posted $0.54 EPS. The company's revenue for the quarter was down 1.7% on a year-over-year basis. Equities research analysts anticipate that Herbalife Ltd will post 1.57 EPS for the current year.

Institutional Investors Weigh In On Herbalife

Hedge funds have recently modified their holdings of the company. Boothbay Fund Management LLC purchased a new stake in shares of Herbalife during the 4th quarter worth about $251,000. Northern Trust Corp boosted its stake in shares of Herbalife by 14.5% during the 4th quarter. Northern Trust Corp now owns 1,002,676 shares of the company's stock worth $6,708,000 after acquiring an additional 126,902 shares in the last quarter. Readystate Asset Management LP boosted its stake in shares of Herbalife by 748.1% during the 1st quarter. Readystate Asset Management LP now owns 114,495 shares of the company's stock worth $988,000 after acquiring an additional 100,995 shares in the last quarter. Q Global Advisors LLC purchased a new stake in shares of Herbalife during the 4th quarter worth about $2,438,000. Finally, Arena Capital Advisors LLC CA lifted its stake in Herbalife by 78.0% in the 1st quarter. Arena Capital Advisors LLC CA now owns 60,910 shares of the company's stock valued at $526,000 after buying an additional 26,700 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.