B. Riley Securities has recently reiterated Herbalife Ltd (HLF) stock to Buy rating, as announced on August 1, 2024, according to Finviz. Earlier, on September 14, 2023, DA Davidson had initiated the stock to Neutral, setting a price target of $13.50. Mizuho also initiated Neutral rating with a price target of $13. Additionally, BofA Securities initiated Underperform rating on February 3, 2023, with a target price of $14. Jefferies analysts, in their report published on July 12, 2022, also raised Buy rating and set a price target of $26 for Herbalife Ltd’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Herbalife Ltd (HLF) Stock Trading Recap
On Monday, Herbalife Ltd (HLF) stock saw a decline, ending the day at $7.19 which represents a decrease of $-0.22 or -2.97% from the prior close of $7.41. The stock opened at $7.38 and touched a low of $7.17 during the day, reaching a high of $7.5. The volume of shares traded was 1.31 million falling short of the average volume of 1.96 million.
HLF Stock Performance and Moving Averages
In recent trading, Herbalife Ltd (HLF) stock price has shown some volatility, fluctuating -4.77% over the last five trades and -15.21% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -21.08%, and it has plunged by -30.46% in the previous three months. Currently, HLF is trading at -3.20%, -18.38%, and -30.25% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, HLF, a Consumer Defensive sector stock, is trading -54.23% below its 52-week high but remains 7.63% above its 52-week low. The Average True Range (ATR) (14 days) of 0.38 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Herbalife Ltd’s Profitability and Valuation Ratios
Herbalife Ltd’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 7.46% and a profit margin of 1.63%, with a gross margin of -21.08%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Herbalife Ltd’s market capitalization stands at $724.18 million. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 8.82, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 3.75. Additionally, the Price-to-Sales Ratio is 0.14, reflecting the market’s valuation of the company’s sales.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 3.30% of Herbalife Ltd (HLF)’s shares, while financial institutions hold 110.25%.
