Herbalife Nutrition (HLF) Now Covered by Jefferies Financial Group

Jefferies Financial Group began coverage on shares of Herbalife Nutrition (NYSE:HLF) in a research note issued to investors on Thursday, MarketBeat Ratings reports. The firm set a “buy” rating and a $65.00 price target on the stock. Jefferies Financial Group’s price objective would suggest a potential upside of 23.55% from the stock’s previous close.

The analysts wrote, “After 5 years of muted growth owing to short attacks & ensuing regulatory changes, HLF’s sales look poised to accelerate to a more normalized range of 5-9%. We believe HLF should be able to grow at least in line with its TAM growth rate of ~6%, which combined w/ strong incremental margins & accretive FCF usage should drive significant earnings upside & support a growth company valuation. As such, we are initiating coverage with a Buy rating & $65 PT. What’s the catalyst for inflection in business momentum? Organic sales growth has inflected sharply positive from -1% in 2017 to +7.5% in 1Q18 & +28% in 2Q18.””

HLF has been the topic of several other research reports. Zacks Investment Research cut shares of Herbalife Nutrition from a “buy” rating to a “hold” rating in a research report on Tuesday, July 3rd. Pivotal Research reiterated a “buy” rating and set a $75.00 price target on shares of Herbalife Nutrition in a research report on Thursday, August 2nd. Two research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The company has an average rating of “Buy” and an average target price of $61.92.

HLF stock opened at $52.61 on Thursday. Herbalife Nutrition has a 12-month low of $32.13 and a 12-month high of $60.41. The stock has a market capitalization of $8.57 billion, a price-to-earnings ratio of 21.53 and a beta of 0.67. The company has a debt-to-equity ratio of -1.87, a quick ratio of 0.71 and a current ratio of 0.91.

Herbalife Nutrition (NYSE:HLF) last released its quarterly earnings data on Wednesday, August 1st. The company reported $0.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.68 by $0.12. Herbalife Nutrition had a net margin of 3.61% and a negative return on equity of 140.85%. The firm had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the previous year, the company earned $1.51 earnings per share. The company’s revenue for the quarter was up 13.3% compared to the same quarter last year. As a group, equities analysts predict that Herbalife Nutrition will post 2.75 EPS for the current year.

In related news, EVP Alan L. Hoffman sold 55,576 shares of the business’s stock in a transaction dated Thursday, August 2nd. The shares were sold at an average price of $57.50, for a total transaction of $3,195,620.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO David Pezzullo sold 99,875 shares of the business’s stock in a transaction dated Tuesday, September 18th. The shares were sold at an average price of $55.29, for a total transaction of $5,522,088.75. The disclosure for this sale can be found here. Insiders have sold 205,961 shares of company stock worth $11,578,487 in the last quarter. 6.19% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in HLF. BNP Paribas Arbitrage SA boosted its stake in Herbalife Nutrition by 124.4% during the first quarter. BNP Paribas Arbitrage SA now owns 1,462 shares of the company’s stock worth $143,000 after acquiring an additional 7,461 shares in the last quarter. Point72 Hong Kong Ltd boosted its stake in Herbalife Nutrition by 1,979.1% during the second quarter. Point72 Hong Kong Ltd now owns 2,890 shares of the company’s stock worth $155,000 after acquiring an additional 2,751 shares in the last quarter. Whittier Trust Co. boosted its stake in Herbalife Nutrition by 100.0% during the second quarter. Whittier Trust Co. now owns 2,900 shares of the company’s stock worth $156,000 after acquiring an additional 1,450 shares in the last quarter. PNC Financial Services Group Inc. boosted its stake in Herbalife Nutrition by 115.1% during the second quarter. PNC Financial Services Group Inc. now owns 3,259 shares of the company’s stock worth $176,000 after acquiring an additional 1,744 shares in the last quarter. Finally, Fox Run Management L.L.C. bought a new stake in Herbalife Nutrition during the third quarter worth about $203,000. Institutional investors own 88.15% of the company’s stock.

Herbalife Nutrition Company Profile

Herbalife Nutrition Ltd. develops and sells nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. It provides science-based products in the areas of weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition.

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Analyst Recommendations for Herbalife Nutrition (NYSE:HLF)

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