Herbalife (NYSE:HLF) Shares Gap Up on Strong Earnings

Herbalife Ltd. (NYSE:HLF)’s stock price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $8.68, but opened at $9.56. Herbalife shares last traded at $9.64, with a volume of 588,702 shares trading hands.

The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.12. Herbalife had a net margin of 2.81% and a negative return on equity of 19.56%. The business had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the prior year, the firm earned $0.54 earnings per share. The company’s revenue for the quarter was up 3.8% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. DA Davidson reaffirmed a “neutral” rating and set a $9.50 target price on shares of Herbalife in a report on Thursday. Mizuho lowered their price target on shares of Herbalife from $12.00 to $10.00 and set a “neutral” rating on the stock in a research report on Thursday, March 21st. StockNews.com raised shares of Herbalife from a “hold” rating to a “buy” rating in a research report on Friday, February 16th. Finally, Bank of America lowered their price target on shares of Herbalife from $10.00 to $8.00 and set an “underperform” rating on the stock in a research report on Thursday, March 21st. One analyst has rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, Herbalife currently has an average rating of “Hold” and a consensus target price of $10.50.

Insider Buying and Selling at Herbalife

In related news, Director Juan Miguel Mendoza bought 16,079 shares of the firm’s stock in a transaction on Tuesday, March 26th. The shares were bought at an average price of $9.40 per share, with a total value of $151,142.60. Following the completion of the transaction, the director now directly owns 54,622 shares of the company’s stock, valued at approximately $513,446.80. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In related news, Director Rodica Macadrai bought 5,175 shares of the firm’s stock in a transaction on Monday, March 11th. The shares were bought at an average price of $9.31 per share, with a total value of $48,179.25. Following the completion of the transaction, the director now directly owns 12,716 shares of the company’s stock, valued at approximately $118,385.96. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Juan Miguel Mendoza purchased 16,079 shares of Herbalife stock in a transaction dated Tuesday, March 26th. The shares were acquired at an average cost of $9.40 per share, for a total transaction of $151,142.60. Following the transaction, the director now directly owns 54,622 shares of the company’s stock, valued at approximately $513,446.80. The disclosure for this purchase can be found here. Insiders have purchased 85,757 shares of company stock valued at $723,278 over the last 90 days. 0.94% of the stock is owned by insiders.

Institutional Trading of Herbalife

Hedge funds have recently made changes to their positions in the business. PEAK6 Investments LLC acquired a new stake in shares of Herbalife during the third quarter worth about $146,000. DGS Capital Management LLC acquired a new stake in shares of Herbalife during the fourth quarter worth about $165,000. SG Americas Securities LLC purchased a new stake in shares of Herbalife during the fourth quarter worth approximately $184,000. Teacher Retirement System of Texas purchased a new stake in shares of Herbalife during the fourth quarter worth approximately $258,000. Finally, Hollencrest Capital Management increased its stake in shares of Herbalife by 21.3% during the first quarter. Hollencrest Capital Management now owns 17,100 shares of the company’s stock worth $172,000 after buying an additional 3,000 shares during the period.

Herbalife Price Performance

The company has a market capitalization of $936.03 million, a PE ratio of 6.61 and a beta of 1.24. The company’s 50 day simple moving average is $8.80 and its 200 day simple moving average is $11.61.

Herbalife Company Profile

Herbalife Ltd. provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the Asia Pacific. It offers products in the areas of weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature and promotional items.