Herbalife Nutrition (HLF) Raised to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Herbalife Nutrition (NYSE:HLF) from a hold rating to a buy rating in a research report sent to investors on Monday morning. Zacks Investment Research currently has $59.00 price objective on the stock.
According to Zacks, “Herbalife has surpassed the industry in the past year, which can be attributable to the company’s solid past record that was retained in second-quarter 2018. Notably, both top and bottom lines improved year over year, and topped the Zacks Consensus Estimate for the third consecutive time. While earnings were driven by robust sales, tax gains and improved gross margin, sales were backed by strength across all regions. Further, Herbalife recorded its highest ever quarterly volume this time, which encouraged management to raise its volumes outlook, while it also pulled up its earnings view for 2018. Clearly, Herbalife’s efforts to keep pace with consumers’ preferences and its effective direct-selling strategy are paying off. However, Herbalife’s solid international presence keep it exposed to adverse currency movements. Incidentally, management cut its 2018 sales view, to account for a 330-bps negative currency impact.”
HLF has been the topic of a number of other research reports. Jefferies Financial Group started coverage on shares of Herbalife Nutrition in a research note on Thursday, October 11th. They issued a buy rating and a $65.00 target price on the stock. Pivotal Research reaffirmed a buy rating and set a $75.00 price target on shares of Herbalife Nutrition in a research note on Thursday, August 2nd. One research analyst has rated the stock with a hold rating and six have assigned a buy rating to the company. The company has a consensus rating of Buy and an average price target of $60.92.
Herbalife Nutrition (NYSE:HLF) last issued its earnings results on Wednesday, August 1st. The company reported $0.80 EPS for the quarter, beating the Zacks’ consensus estimate of $0.68 by $0.12. Herbalife Nutrition had a net margin of 3.61% and a negative return on equity of 140.85%. The business had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the firm posted $1.51 EPS. The business’s revenue for the quarter was up 13.3% compared to the same quarter last year. On average, equities analysts expect that Herbalife Nutrition will post 2.75 earnings per share for the current year.
In related news, EVP Alan L. Hoffman sold 55,576 shares of Herbalife Nutrition stock in a transaction on Thursday, August 2nd. The shares were sold at an average price of $57.50, for a total transaction of $3,195,620.00. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Jeff Dunn sold 17,440 shares of Herbalife Nutrition stock in a transaction on Friday, August 3rd. The stock was sold at an average price of $58.53, for a total transaction of $1,020,763.20. The disclosure for this sale can be found here. Insiders have sold a total of 205,961 shares of company stock worth $11,578,487 in the last ninety days. 6.19% of the stock is currently owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in the stock. Northern Trust Corp increased its position in shares of Herbalife Nutrition by 0.5% in the 1st quarter. Northern Trust Corp now owns 333,210 shares of the company’s stock worth $32,477,000 after purchasing an additional 1,819 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Herbalife Nutrition by 1.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 512,861 shares of the company’s stock worth $49,988,000 after purchasing an additional 7,120 shares during the last quarter. BNP Paribas Arbitrage SA increased its position in shares of Herbalife Nutrition by 124.4% in the 1st quarter. BNP Paribas Arbitrage SA now owns 1,462 shares of the company’s stock worth $143,000 after purchasing an additional 7,461 shares during the last quarter. Russell Investments Group Ltd. increased its position in shares of Herbalife Nutrition by 6.0% in the 1st quarter. Russell Investments Group Ltd. now owns 8,457 shares of the company’s stock worth $824,000 after purchasing an additional 480 shares during the last quarter. Finally, Highbridge Capital Management LLC bought a new stake in shares of Herbalife Nutrition in the 1st quarter worth about $829,000. 88.15% of the stock is currently owned by hedge funds and other institutional investors.
Herbalife Nutrition Company Profile
Herbalife Nutrition Ltd. develops and sells nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. It provides science-based products in the areas of weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition.
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