Herbalife (NYSE:HLF) Stock Price Up 5.2% - Should You Buy?

Key Points

• Herbalife shares rose 5.2% to about $11.56 in mid-day trading, although volume was 82% below the average session level.
• Analysts remain cautious: the stock has a consensus “Hold” rating and a $17 average price target, despite three Buy recommendations.
• Herbalife’s latest quarter showed revenue growth of 5.4% year over year to $1.33 billion, but EPS of $0.51 missed estimates and fell from $0.59 a year earlier.

Shares of Herbalife Ltd (NYSE:HLF - Get Free Report) were up 5.2% during mid-day trading on Tuesday . The stock traded as high as $11.72 and last traded at $11.5610. 288,357 shares changed hands during trading, a decline of 82% from the average session volume of 1,564,411 shares. The stock had previously closed at $10.99.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on HLF shares. Citigroup reaffirmed a "buy" rating and issued a $17.00 price objective (down from $21.00) on shares of Herbalife in a report on Friday, August 7th. Weiss Ratings downgraded shares of Herbalife from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, July 24th. Mizuho set a $17.00 price target on shares of Herbalife in a report on Monday, May 4th. Finally, Wall Street Zen downgraded shares of Herbalife from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Three investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $17.00.

Herbalife Trading Up 4.0%

The firm has a market cap of $1.20 billion, a price-to-earnings ratio of 7.41, a price-to-earnings-growth ratio of 0.40 and a beta of 0.87. The stock has a 50-day moving average of $12.41 and a 200-day moving average of $13.97.

Herbalife (NYSE:HLF - Get Free Report) last posted its earnings results 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 net margin of 3.16% and a negative return on equity of 43.90%. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter in the previous year, the business posted $0.59 earnings per share. The business's quarterly revenue was up 5.4% compared to the same quarter last year. As a group, research analysts expect that Herbalife Ltd will post 2.68 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Herbalife

Several hedge funds and other institutional investors have recently made changes to their positions in HLF. EverSource Wealth Advisors LLC grew its holdings in Herbalife by 12.6% in the 1st 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. Optimize Financial Inc grew its stake in shares of Herbalife by 1.5% in the fourth quarter. Optimize Financial Inc now owns 61,426 shares of the company's stock worth $792,000 after purchasing 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 purchasing an additional 1,217 shares during the period. CWM LLC raised its stake in shares of Herbalife by 5.9% during the fourth quarter. CWM LLC now owns 24,229 shares of the company's stock valued at $312,000 after purchasing an additional 1,348 shares in the last quarter. Finally, ProShare Advisors LLC lifted its holdings in Herbalife by 8.2% in the fourth quarter. ProShare Advisors LLC now owns 18,711 shares of the company's stock worth $241,000 after purchasing an additional 1,419 shares during the period.

About Herbalife

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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