Herbalife (NYSE:HLF) Stock Gets Downgrade from Zacks Research

Herbalife (NYSE:HLF) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Thursday, Zacks reports.

A number of other equities analysts have also recently weighed in on HLF. Wall Street Zen raised Herbalife from a “hold” rating to a “buy” rating in a report on Saturday, October 24th. Texas Capital raised Herbalife to a “strong-buy” rating in a research note on Thursday, September 17th. Weiss Ratings reiterated a “hold (c)” rating on shares of Herbalife in a research report on Thursday, October 22nd. Citigroup reiterated a “buy” rating and set a $17.00 price objective (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. Finally, UBS Group set a $21.00 target price on shares of Herbalife in a research note on Thursday, September 17th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Herbalife has a consensus rating of “Moderate Buy” and an average target price of $17.67.

Herbalife Stock Performance

Shares of HLF opened at $13.04 on Thursday. The stock has a market capitalization of $1.37 billion, a P/E ratio of 8.41, a P/E/G ratio of 0.43 and a beta of 0.78. Herbalife has a 1 year low of $7.56 and a 1 year high of $20.40. The company’s fifty day moving average is $12.71 and its two-hundred day moving average is $14.01.

Herbalife (NYSE:HLF) last issued 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). The business had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.31 billion. Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%. The business’s quarterly revenue was up 5.4% on a year-over-year basis. During the same period last year, the company posted $0.59 earnings per share. Sell-side analysts predict that Herbalife will post 2.68 EPS for the current year.

Herbalife declared that its board has approved a stock buyback plan on Tuesday, September 8th that allows the company to repurchase $250 million in shares. This repurchase authorization allows the company to repurchase up to 19.3% of its shares through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On Herbalife

Large investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC grew its position in shares of Herbalife by 12.6% during the 1st 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. Signaturefd LLC raised its stake in Herbalife by 135.1% during the third quarter. Signaturefd LLC now owns 2,222 shares of the company’s stock worth $27,000 after acquiring an additional 1,277 shares during the period. Janney Montgomery Scott LLC raised its stake in Herbalife by 2.5% during the first quarter. Janney Montgomery Scott LLC now owns 96,330 shares of the company’s stock worth $1,418,000 after acquiring an additional 2,375 shares during the period. SummerHaven Investment Management LLC lifted its holdings in Herbalife by 3.6% in the third quarter. SummerHaven Investment Management LLC now owns 77,769 shares of the company’s stock worth $943,000 after acquiring an additional 2,700 shares during the last quarter. Finally, DGS Capital Management LLC lifted its holdings in Herbalife by 3.5% in the first quarter. DGS Capital Management LLC now owns 82,323 shares of the company’s stock worth $1,212,000 after acquiring an additional 2,746 shares during the last quarter.

About Herbalife

Herbalife Ltd. (NYSE: HLF) is a global nutrition and wellness company that develops and distributes products through a network of independent members and distributors. Its offerings include meal-replacement shakes, protein and other dietary supplements, vitamins, sports nutrition products, and personal-care items.

Founded in 1980 by Mark Hughes, Herbalife sells its products through direct-selling channels rather than primarily through traditional retail stores. Independent distributors market the products, provide product guidance, and may operate nutrition clubs or similar community-based businesses.

The company serves customers across numerous markets in North America, Latin America, Europe, Asia-Pacific, and other regions.