Herbalife (NYSE:HLF) Stock Price Down 13% - What's Next?

Key Points

• Shares fell about 13%, trading down to $14.31 on Thursday from a $16.44 close (intraday low $14.71), while volume was roughly 83% below the stock’s average, indicating a sharp price move on light trading.
• Herbalife beat Q1 estimates with EPS of $0.64 versus $0.55 and revenue of $1.32B (up 7.8% YoY), but the company still shows a negative return on equity (35.02%) and a thin net margin (~4.5%).
• Analysts are mixed — three Buy vs. four Hold ratings produce an average rating of "Hold" and an average price target of $17.80, though some firms (e.g., Citi) have higher targets up to $21.

Herbalife Ltd (NYSE:HLF - Get Free Report) was down 13% on Thursday . The stock traded as low as $14.71 and last traded at $14.31. Approximately 250,208 shares changed hands during trading, a decline of 83% from the average daily volume of 1,479,147 shares. The stock had previously closed at $16.44.

Analyst Upgrades and Downgrades

HLF has been the subject of several recent research reports. Wall Street Zen raised Herbalife from a "buy" rating to a "strong-buy" rating in a report on Saturday, April 18th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Herbalife in a report on Thursday, January 22nd. Citigroup reaffirmed a "buy" rating and issued a $21.00 price target (up from $17.00) on shares of Herbalife in a report on Thursday, February 19th. Mizuho set a $17.00 price target on Herbalife in a report on Monday. Finally, Zacks Research cut Herbalife from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. Three investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $17.80.

Herbalife Trading Down 12.1%

The firm has a fifty day simple moving average of $16.02 and a 200 day simple moving average of $14.23. The stock has a market cap of $1.49 billion, a price-to-earnings ratio of 6.57, a PEG ratio of 0.97 and a beta of 0.98.

Herbalife (NYSE:HLF - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.55 by $0.09. Herbalife had a negative return on equity of 35.02% and a net margin of 4.53%.The firm had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the prior year, the firm posted $0.59 EPS. The company's revenue for the quarter was up 7.8% on a year-over-year basis. On average, equities analysts expect that Herbalife Ltd will post 2.52 earnings per share for the current year.

Hedge Funds Weigh In On Herbalife

A number of hedge funds have recently modified their holdings of HLF. AQR Capital Management LLC raised its holdings in shares of Herbalife by 236.8% in the 1st quarter. AQR Capital Management LLC now owns 133,245 shares of the company's stock worth $1,150,000 after buying an additional 93,686 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Herbalife by 4.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 59,964 shares of the company's stock worth $517,000 after buying an additional 2,523 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Herbalife by 12.9% in the 1st quarter. Empowered Funds LLC now owns 30,301 shares of the company's stock worth $261,000 after buying an additional 3,474 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Herbalife by 3.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 210,904 shares of the company's stock worth $1,820,000 after buying an additional 6,747 shares in the last quarter. Finally, Envestnet Asset Management Inc. acquired a new position in shares of Herbalife in the 2nd quarter worth approximately $118,000.

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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