Herbalife (NYSE:HLF) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Herbalife from a “strong‑buy” to a “hold”; analyst coverage is split (three Buy, three Hold) with a consensus target price of $17.75 and an average rating of “Moderate Buy.”
• Herbalife reported EPS of $0.45 (missing estimates of $0.48) while revenue of $1.28B beat expectations and grew 6.3% year‑over‑year; the stock trades near $16.46 with a PE of 7.48 and a market cap around $1.7B.
• Several hedge funds — including Manatuck Hill Partners, Invesco and UBS — materially increased their stakes, indicating notable institutional buying interest.

Herbalife (NYSE:HLF - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

A number of other equities analysts have also recently issued reports on the company. Maxim Group began coverage on Herbalife in a report on Tuesday, January 6th. They set a "buy" rating and a $20.00 target price for the company. Citigroup restated a "buy" rating and issued a $21.00 price objective (up from $17.00) on shares of Herbalife in a report on Thursday, February 19th. Weiss Ratings restated a "hold (c)" rating on shares of Herbalife in a report on Thursday, January 22nd. Mizuho raised their price objective on Herbalife from $13.00 to $15.00 and gave the company a "neutral" rating in a report on Monday, March 30th. Finally, Wall Street Zen upgraded Herbalife from a "buy" rating to a "strong-buy" rating in a report on Saturday. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $17.75.

Herbalife Trading Down 3.1%

HLF stock opened at $16.46 on Monday. The stock has a 50-day moving average price of $16.18 and a two-hundred day moving average price of $13.75. The stock has a market cap of $1.70 billion, a PE ratio of 7.48, a price-to-earnings-growth ratio of 1.01 and a beta of 0.95. Herbalife has a 1 year low of $6.45 and a 1 year high of $20.40.

Herbalife (NYSE:HLF - Get Free Report) last released its earnings results on Thursday, February 19th. The company reported $0.45 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.48 by ($0.03). The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.24 billion. Herbalife had a negative return on equity of 35.02% and a net margin of 4.53%.Herbalife's revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter last year, the company posted $0.36 EPS. On average, analysts forecast that Herbalife will post 2.52 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Herbalife

Hedge funds have recently modified their holdings of the stock. Manatuck Hill Partners LLC grew its holdings in Herbalife by 122.2% during the third quarter. Manatuck Hill Partners LLC now owns 1,000,000 shares of the company's stock worth $8,440,000 after purchasing an additional 550,000 shares during the period. Invenomic Capital Management LP bought a new position in Herbalife during the third quarter worth about $3,550,000. Johnson Financial Group LLC grew its holdings in Herbalife by 1,156.1% during the fourth quarter. Johnson Financial Group LLC now owns 414,500 shares of the company's stock worth $5,343,000 after purchasing an additional 381,500 shares during the period. Invesco Ltd. lifted its position in Herbalife by 60.5% during the third quarter. Invesco Ltd. now owns 763,857 shares of the company's stock worth $6,447,000 after acquiring an additional 287,880 shares during the last quarter. Finally, UBS Group AG lifted its position in Herbalife by 74.3% during the third quarter. UBS Group AG now owns 658,654 shares of the company's stock worth $5,559,000 after acquiring an additional 280,870 shares during the last quarter.

Herbalife Company Profile

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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