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

Key Points

• Herbalife shares fell sharply, opening at $11.33 versus a previous close of $12.43 and later trading near $10.89, a decline of about 12.9%.
• The company’s quarterly EPS of $0.51 missed the $0.54 analyst estimate, although revenue rose 5.4% year over year to $1.33 billion and exceeded expectations.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $17.00 price target after several firms downgraded or lowered their views.

Shares of Herbalife Ltd (NYSE:HLF - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $12.43, but opened at $11.33. Herbalife shares last traded at $10.8860, with a volume of 658,243 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on HLF. Wall Street Zen downgraded Herbalife from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Mizuho set a $17.00 target price on shares of Herbalife in a research report on Monday, May 4th. Weiss Ratings lowered shares of Herbalife from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, July 24th. Finally, Citigroup reaffirmed a "buy" rating and set a $17.00 price target (down from $21.00) on shares of Herbalife in a research note on Friday, August 7th. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $17.00.

Herbalife Stock Down 12.9%

The company has a market cap of $1.13 billion, a price-to-earnings ratio of 6.99, a PEG ratio of 0.40 and a beta of 0.87. The firm has a 50 day moving average price of $12.43 and a two-hundred day moving average price of $14.01.

Herbalife (NYSE:HLF - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.54 by ($0.03). Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%.The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter last year, the business earned $0.59 earnings per share. Herbalife's revenue was up 5.4% compared to the same quarter last year. On average, equities analysts expect that Herbalife Ltd will post 2.68 earnings per share for the current year.

Institutional Investors Weigh In On Herbalife

A number of institutional investors have recently modified their holdings of HLF. Arrowstreet Capital Limited Partnership raised its stake in Herbalife by 11.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,596,795 shares of the company's stock worth $38,225,000 after buying an additional 267,539 shares during the last quarter. Geode Capital Management LLC boosted its position in Herbalife by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 2,577,634 shares of the company's stock valued at $33,231,000 after acquiring an additional 25,783 shares during the last quarter. Quantedge Capital Pte Ltd grew its holdings in Herbalife by 5.2% during the 4th quarter. Quantedge Capital Pte Ltd now owns 2,249,683 shares of the company's stock worth $28,998,000 after acquiring an additional 111,700 shares during the period. Dimensional Fund Advisors LP raised its position in shares of Herbalife by 29.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,877,717 shares of the company's stock worth $27,638,000 after acquiring an additional 425,968 shares in the last quarter. Finally, Solel Partners LP raised its position in shares of Herbalife by 18.7% in the 2nd quarter. Solel Partners LP now owns 1,669,405 shares of the company's stock worth $14,390,000 after acquiring an additional 262,614 shares in 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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