Herbalife (NYSE:HLF) Upgraded to “Buy” at Wall Street Zen

by · The Markets Daily

Wall Street Zen upgraded shares of Herbalife (NYSE:HLF – Free Report) from a hold rating to a buy rating in a research note issued to investors on Saturday,Wall Street Zen reports.

A number of other research analysts also recently issued reports on HLF. UBS Group set a $21.00 price target on Herbalife in a report on Thursday. Citigroup reiterated 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. Finally, Weiss Ratings cut Herbalife from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $17.67.

View Our Latest Report on HLF

Herbalife Stock Up 1.8%

Shares of HLF opened at $11.89 on Friday. The stock has a market capitalization of $1.25 billion, a P/E ratio of 7.67, a PEG ratio of 0.39 and a beta of 0.85. The firm has a fifty day simple moving average of $12.21 and a two-hundred day simple moving average of $13.42. Herbalife has a twelve month low of $7.56 and a twelve month high of $20.40.

Herbalife (NYSE:HLF – Get Free Report) last released its quarterly earnings data 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 firm had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.31 billion. Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. Herbalife’s revenue was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.59 EPS. Sell-side analysts expect that Herbalife will post 2.68 EPS for the current fiscal year.

Herbalife announced that its Board of Directors has authorized a share repurchase plan on Tuesday, September 8th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 19.3% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Herbalife

A number of institutional investors have recently bought and sold shares of HLF. Arrowstreet Capital Limited Partnership lifted its holdings in Herbalife by 11.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,596,795 shares of the company’s stock worth $38,225,000 after buying an additional 267,539 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of 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 during the period. Invenomic Capital Management LP raised its position in shares of 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 in the last quarter. Pacer Advisors Inc. bought a new position in shares of Herbalife in the 1st quarter worth approximately $9,491,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Herbalife in the 2nd quarter valued at approximately $5,842,000.

About Herbalife

(Get Free Report)

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, balanced nutrition, energy, sports performance and personal care.

The company’s product portfolio includes meal-replacement shakes, protein and fiber products, dietary supplements, vitamins, herbal teas, sports nutrition products and skin- and body-care items. Herbalife distributes its products in markets around the world, including North America, Latin America, Europe, Asia-Pacific and Africa, primarily through direct selling and independent members who provide product information and personalized support to consumers.

Herbalife was founded in 1980 by Mark Hughes and has since expanded from a primarily weight-management business into a broader nutrition and wellness enterprise.

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