Herbalife (NYSE:HLF) Stock Price Crosses Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Herbalife shares crossed above their 200-day moving average, reaching $13.08 before closing near $13.03, up 1.6%.
• Analyst sentiment is generally positive, with an average “Moderate Buy” rating and a consensus price target of $17.67, although some firms recently downgraded the stock or lowered their targets.
• The company authorized a $250 million share-repurchase program, covering up to 19.3% of outstanding shares. Its latest quarterly revenue rose 5.4% year over year to $1.33 billion, while EPS missed estimates.

Herbalife Ltd (NYSE:HLF - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $13.04 and traded as high as $13.08. Herbalife shares last traded at $13.0250, with a volume of 1,488,607 shares traded.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Zacks Research raised shares of Herbalife from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 30th. Texas Capital raised Herbalife to a "strong-buy" rating in a research report on Thursday, September 17th. Wall Street Zen cut Herbalife from a "buy" rating to a "hold" rating in a report on Sunday, September 27th. Citigroup reissued a "buy" rating and set a $17.00 price target (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. Finally, Weiss Ratings lowered Herbalife from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, July 24th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, Herbalife currently has an average rating of "Moderate Buy" and an average price target of $17.67.

Herbalife Stock Up 1.6%

The firm's 50 day simple moving average is $12.25 and its 200-day simple moving average is $13.04. The company has a market capitalization of $1.37 billion, a PE ratio of 8.40, a P/E/G ratio of 0.43 and a beta of 0.78.

Herbalife (NYSE:HLF - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.51 EPS for the quarter, missing analysts' consensus estimates of $0.54 by ($0.03). Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. The business had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.31 billion. During the same period in the prior year, the business posted $0.59 EPS. The business's revenue was up 5.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Herbalife Ltd will post 2.68 EPS for the current fiscal year.

Herbalife declared that its board has approved a stock repurchase plan on Tuesday, September 8th that authorizes the company to buy back $250.00 million in shares. This repurchase authorization authorizes the company to purchase up to 19.3% of its shares through open market purchases. Share repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Herbalife

Several institutional investors and hedge funds have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership grew its stake in shares of Herbalife by 11.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,596,795 shares of the company's stock valued at $38,225,000 after buying an additional 267,539 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in Herbalife by 29.3% during 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. Invenomic Capital Management LP boosted its holdings in Herbalife by 82.6% in the 4th quarter. Invenomic Capital Management LP now owns 768,031 shares of the company's stock worth $9,900,000 after acquiring an additional 347,401 shares during the period. Pacer Advisors Inc. purchased a new position in Herbalife in the 1st quarter worth approximately $9,491,000. Finally, Bank of New York Mellon Corp acquired a new stake in Herbalife in the second quarter valued at approximately $5,842,000.

Herbalife Company Profile

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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