Herbalife (NYSE:HLF) Shares Gap Up - Still a Buy?

Key Points

• Herbalife shares opened higher, gapping from $12.38 to $13.00 before trading near $12.47, with approximately 402,000 shares changing hands.
• Analyst sentiment remains cautious: the stock carries a consensus “Hold” rating from seven analysts, with a $17.00 average price target. Citigroup maintained a Buy rating but cut its target to $17 from $21.
• Herbalife’s latest quarter showed 5.4% year-over-year revenue growth to $1.33 billion, but earnings per share of $0.51 missed estimates by $0.03; analysts expect $2.68 in full-year EPS.

Herbalife Ltd (NYSE:HLF - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $12.38, but opened at $13.00. Herbalife shares last traded at $12.4650, with a volume of 402,046 shares.

Wall Street Analyst Weigh In

HLF has been the subject of a number of analyst reports. Weiss Ratings lowered Herbalife from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, July 24th. Wall Street Zen lowered Herbalife from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Citigroup restated a "buy" rating and set a $17.00 price objective (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 issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $17.00.

Herbalife Stock Performance

The stock has a market cap of $1.30 billion, a P/E ratio of 8.02, a price-to-earnings-growth ratio of 0.41 and a beta of 0.85. The firm's 50 day moving average is $12.38 and its 200 day moving average is $13.83.

Herbalife (NYSE:HLF - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.51 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.03). Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates 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% on a year-over-year basis. As a group, analysts expect that Herbalife Ltd will post 2.68 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in HLF. EverSource Wealth Advisors LLC raised its stake in Herbalife by 12.6% in the first quarter. EverSource Wealth Advisors LLC now owns 7,366 shares of the company's stock valued at $108,000 after buying an additional 822 shares during the last quarter. Optimize Financial Inc increased its holdings in shares of Herbalife by 1.5% during the fourth quarter. Optimize Financial Inc now owns 61,426 shares of the company's stock valued at $792,000 after acquiring an additional 880 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Herbalife by 3.4% during the second quarter. The Manufacturers Life Insurance Company now owns 36,642 shares of the company's stock valued at $316,000 after acquiring an additional 1,217 shares in the last quarter. ProShare Advisors LLC boosted its stake in Herbalife by 8.2% in the 4th quarter. ProShare Advisors LLC now owns 18,711 shares of the company's stock worth $241,000 after purchasing an additional 1,419 shares in the last quarter. Finally, Van ECK Associates Corp grew its position in Herbalife by 9.2% during the 4th quarter. Van ECK Associates Corp now owns 19,420 shares of the company's stock worth $250,000 after purchasing an additional 1,638 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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