Herbalife (NYSE:HLF) Stock Jumps 5% - Time to Buy?

Key Points

• Herbalife shares rose 5% to about $13.69, with trading volume below its average. The stock has a $1.44 billion market capitalization and trades at a relatively low price-to-earnings ratio of 8.80.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $17.67, although individual ratings range from Hold to Strong Buy.
• The company authorized a $250 million stock repurchase program, potentially covering up to 19.3% of outstanding shares. Recent quarterly revenue increased 5.4% year over year, but earnings per share came in slightly below analyst expectations.

Herbalife Ltd (NYSE:HLF - Get Free Report) shot up 5% during trading on Monday. The company traded as high as $13.61 and last traded at $13.6870. 925,609 shares traded hands during trading, a decline of 41% from the average daily volume of 1,559,508 shares. The stock had previously closed at $13.03.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Wall Street Zen downgraded shares of Herbalife from a "buy" rating to a "hold" rating in a research note on Sunday, September 27th. Texas Capital upgraded Herbalife to a "strong-buy" rating in a report on Thursday, September 17th. Zacks Research raised Herbalife from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 30th. UBS Group set a $21.00 price target on Herbalife in a research report on Thursday, September 17th. 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. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $17.67.

Herbalife Stock Up 5.1%

The business has a 50 day simple moving average of $12.25 and a 200 day simple moving average of $13.03. The company has a market capitalization of $1.44 billion, a PE ratio of 8.80, a PEG ratio of 0.43 and a beta of 0.78.

Herbalife (NYSE:HLF - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.51 earnings per share (EPS) 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 company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same quarter last year, the company earned $0.59 EPS. The business's revenue was up 5.4% compared to the same quarter last year. Equities analysts expect that Herbalife Ltd will post 2.68 EPS for the current fiscal year.

Herbalife announced that its board has initiated a stock repurchase program on Tuesday, September 8th that permits the company to buy back $250.00 million in shares. This buyback authorization permits the company to reacquire up to 19.3% of its stock through open market purchases. Share buyback programs are typically an indication that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Herbalife

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. KBC Group NV purchased a new position in Herbalife in the 1st quarter valued at $44,000. EverSource Wealth Advisors LLC grew its holdings in shares of Herbalife by 12.6% during the first quarter. EverSource Wealth Advisors LLC now owns 7,366 shares of the company's stock worth $108,000 after buying an additional 822 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Herbalife during the fourth quarter worth $114,000. Sequoia Financial Advisors LLC acquired a new stake in shares of Herbalife in the first quarter valued at about $152,000. Finally, Tidal Investments LLC acquired a new stake in shares of Herbalife in the second quarter valued at about $140,000.

About Herbalife

Herbalife Ltd. NYSE: HLF is a global nutrition and wellness company that develops and sells products through a network of independent distributors. Its offerings are designed to support weight management, sports performance, energy, and general well-being.

The company's product portfolio includes meal-replacement shakes, protein products, dietary supplements, vitamins, teas, hydration products, sports nutrition products, and personal-care items. Herbalife distributes its products in more than 90 countries through direct selling, including person-to-person sales, nutrition clubs, and online channels operated by its independent distributors.

Herbalife was founded in 1980 by Mark Hughes and is headquartered in Los Angeles, California.

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