Wall Street Zen Downgrades Herbalife (NYSE:HLF) to Buy

Herbalife (NYSE:HLF) was downgraded by equities researchers at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a note issued to investors on Saturday.

A number of other research analysts have also weighed in on HLF. Zacks Research lowered Herbalife from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 20th. Weiss Ratings upgraded Herbalife from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, June 15th. Mizuho set a $17.00 price target on Herbalife in a research note on Monday, May 4th. Finally, Royal Bank Of Canada dropped their price target on Herbalife from $17.00 to $16.00 and set a “sector perform” rating for the company in a research note on Tuesday, April 28th. Three research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Herbalife currently has an average rating of “Hold” and an average price target of $17.80.

Herbalife Stock Performance

HLF stock opened at $12.01 on Friday. Herbalife has a one year low of $7.56 and a one year high of $20.40. The company’s fifty day moving average price is $12.37 and its 200-day moving average price is $14.75. The company has a market capitalization of $1.24 billion, a PE ratio of 5.27, a price-to-earnings-growth ratio of 0.66 and a beta of 0.86.

Herbalife (NYSE:HLF) last posted its earnings results on Wednesday, May 6th. The company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.03. The company had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.30 billion. Herbalife had a net margin of 4.67% and a negative return on equity of 41.47%. Herbalife’s quarterly revenue was up 7.8% on a year-over-year basis. During the same period last year, the company posted $0.59 earnings per share. On average, research analysts predict that Herbalife will post 2.68 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, COO Troy Hicks sold 10,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $12.32, for a total transaction of $123,200.00. Following the sale, the chief operating officer directly owned 9,706 shares in the company, valued at approximately $119,577.92. This represents a 50.75% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Frank Lamberti sold 134,982 shares of the company’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $13.50, for a total transaction of $1,822,257.00. Following the sale, the insider owned 36,624 shares in the company, valued at $494,424. This represents a 78.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 191,296 shares of company stock worth $2,551,678. 5.13% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Arrowstreet Capital Limited Partnership raised its position in Herbalife by 11.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,596,795 shares of the company’s stock valued at $38,225,000 after purchasing an additional 267,539 shares during the period. Geode Capital Management LLC lifted its stake in shares of Herbalife by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 2,577,634 shares of the company’s stock valued at $33,231,000 after purchasing an additional 25,783 shares during the last quarter. Quantedge Capital Pte Ltd boosted its holdings in shares of Herbalife by 5.2% in the 4th quarter. Quantedge Capital Pte Ltd now owns 2,249,683 shares of the company’s stock worth $28,998,000 after purchasing an additional 111,700 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Herbalife by 29.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,877,717 shares of the company’s stock worth $27,638,000 after purchasing an additional 425,968 shares during the period. Finally, Solel Partners LP boosted its holdings in shares of Herbalife by 18.7% in the 2nd quarter. Solel Partners LP now owns 1,669,405 shares of the company’s stock worth $14,390,000 after purchasing an additional 262,614 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.