Herbalife Receives Upgrades from Analysts Amid Strong Earnings

Herbalife (NYSE: HLF) has recently been upgraded from a “hold” rating to a “buy” rating by Wall Street Zen, reflecting a positive outlook for the company following its latest earnings report. The upgrade, announced on Friday, is part of a series of assessments by various research analysts who are reassessing the company’s potential.

On October 8, Weiss Ratings maintained a “hold (c)” rating for Herbalife, while Mizuho raised its price target from $10.00 to $11.00, classifying the stock as “neutral.” Additionally, Argus established a target price of $15.00 for Herbalife shares. Currently, three analysts have rated the stock as a “buy,” while two have assigned a “hold” label. According to data compiled by MarketBeat.com, the company holds an average rating of “Moderate Buy” with a price target of approximately $12.75.

Recent Financial Performance

Herbalife reported its quarterly earnings on November 5, revealing earnings per share (EPS) of $0.50, exceeding the consensus estimate of $0.46 by $0.04. The company achieved a net margin of 6.59% and a negative return on equity of 27.36%. Its revenue for the quarter stood at $1.27 billion, aligning with analyst projections. Comparatively, the company posted $0.57 EPS during the same period last year, marking a 4.8% year-over-year increase in revenue.

Moving forward, Herbalife has set its earnings guidance for the fiscal year 2025, projecting an EPS of $1.57 for the current fiscal year.

Insider Activity and Institutional Investment

In related news, Herbalife’s Director, Lynda Cloud, purchased 17,000 shares of the company’s stock on November 18, valued at approximately $152,490 based on an average price of $8.97 per share. This acquisition increased her ownership stake by 77.78%, bringing her total holdings to 38,857 shares, worth around $348,547.29. This transaction was disclosed in a filing with the SEC.

Several institutional investors have also been adjusting their positions in Herbalife. Notably, CIBC Private Wealth Group LLC increased its stake by 0.7% in the third quarter, now holding 437,119 shares valued at $3.69 million. Tweedy Browne Co LLC significantly boosted its position by 104.1%, acquiring an additional 22,508 shares, bringing its total to 44,136 shares worth $373,000.

Other firms such as Advisory Services Network LLC and PharVision Advisers LLC have also entered new positions in Herbalife during the same quarter, with investments valued at approximately $65,000 and $484,000, respectively. XTX Topco Ltd acquired a stake valued at around $548,000.

Herbalife Ltd. specializes in health and wellness products across North America, Latin America, Europe, the Middle East, Africa, and Asia Pacific. The company offers a diverse range of products focusing on weight management, targeted nutrition, energy and fitness, and outer nutrition.

With its recent upgrades and positive earnings report, Herbalife is positioning itself favorably in the market, attracting interest from both analysts and investors alike.