Herbalife (NYSE:HLF) Shares Gap Up Following Better-Than-Expected Earnings

Herbalife Ltd. (NYSE:HLF)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $6.81, but opened at $7.29. Herbalife shares last traded at $7.66, with a volume of 970,154 shares traded.

The company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.19 by $0.38. Herbalife had a negative return on equity of 18.69% and a net margin of 1.63%. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. StockNews.com downgraded Herbalife from a “buy” rating to a “hold” rating in a research note on Tuesday, October 22nd. DA Davidson cut their target price on Herbalife from $13.00 to $7.50 and set a “neutral” rating on the stock in a research note on Thursday. B. Riley decreased their target price on Herbalife from $17.00 to $12.00 and set a “buy” rating for the company in a research report on Thursday. Finally, Citigroup cut their price target on shares of Herbalife from $16.00 to $13.00 and set a “buy” rating on the stock in a research report on Friday, October 25th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $10.75.

Insider Activity

In other Herbalife news, Director Juan Miguel Mendoza bought 10,000 shares of the stock in a transaction that occurred on Monday, September 9th. The stock was acquired at an average cost of $7.11 per share, with a total value of $71,100.00. Following the purchase, the director now owns 120,000 shares in the company, valued at $853,200. This trade represents a 0.00 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.94% of the stock is currently owned by company insiders.

Institutional Trading of Herbalife

Several hedge funds and other institutional investors have recently modified their holdings of the company. Baupost Group LLC MA grew its holdings in shares of Herbalife by 128.3% during the second quarter. Baupost Group LLC MA now owns 5,124,526 shares of the company’s stock worth $53,244,000 after buying an additional 2,879,603 shares in the last quarter. Marshall Wace LLP grew its stake in shares of Herbalife by 2,053.6% during the 2nd quarter. Marshall Wace LLP now owns 1,977,155 shares of the company’s stock worth $20,543,000 after acquiring an additional 1,885,346 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in shares of Herbalife by 3,832.5% in the first quarter. Jacobs Levy Equity Management Inc. now owns 1,157,309 shares of the company’s stock valued at $11,631,000 after purchasing an additional 1,127,880 shares during the last quarter. Renaissance Technologies LLC lifted its position in shares of Herbalife by 11.6% in the second quarter. Renaissance Technologies LLC now owns 6,653,401 shares of the company’s stock worth $69,129,000 after purchasing an additional 692,800 shares in the last quarter. Finally, Iridian Asset Management LLC CT lifted its position in shares of Herbalife by 43.7% in the third quarter. Iridian Asset Management LLC CT now owns 2,228,193 shares of the company’s stock worth $16,021,000 after purchasing an additional 677,739 shares in the last quarter.

Herbalife Stock Up 10.6 %

The firm has a market cap of $758.91 million, a price-to-earnings ratio of 9.21, a PEG ratio of 0.26 and a beta of 1.19. The company’s fifty day moving average is $7.35 and its 200 day moving average is $9.30.

About Herbalife

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.