How does Herbalife Ltd. (HLF) change from a tortoise to a hare?

Herbalife Ltd. (NYSE: HLF) stock fell -0.82% on Monday to $14.47 against a previous-day closing price of $14.59. With 0.63 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.53 million shares. During the session, the Packaged Foods company that operates in wider Consumer Defensive sector, reached to the highest price of $14.55 whereas the lowest price it dropped to was $14.31. The 52-week range on HLF shows that it touched its highest point at $23.34 and its lowest point at $11.14 during that stretch. It currently has a 1-year price target of $20.70. Beta for the stock currently stands at 1.19.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HLF was up-trending over the past week, with a rise of 0.70%, but this was down by -6.10% over a month. Three-month performance surged to 16.22% while six-month performance fell -14.98%. The stock lost -38.43% in the past year, while it has lost -2.76% so far this year. A look at the trailing 12-month EPS for HLF yields 2.28 with Next year EPS estimates of 3.44. For the next quarter, that number is 0.73. This implies an EPS growth rate of -21.80% for this year and 35.78% for next year. EPS is expected to decline by -0.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 7.80%.

Float and Shares Shorts:

At present, 99.10 million HLF shares are outstanding with a float of 96.55 million shares on hand for trading. On Aug 30, 2023, short shares totaled 12.32 million, which was 12.45% higher than short shares on Jul 30, 2023. In addition to Mr. Michael O. Johnson as the firm’s Chairman & CEO, Mr. Alexander R. Amezquita serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 107.80% of HLF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 76.25% of HLF, in contrast to 42.47% held by mutual funds. Shares owned by individuals account for 34.14%. As the largest shareholder in HLF with 10.96% of the stake, Route One Investment Co. LP holds 10,845,794 shares worth 10,845,794. A second-largest stockholder of HLF, The Vanguard Group, Inc., holds 10,255,524 shares, controlling over 10.36% of the firm’s shares. The WindAcre Partnership LLC is the third largest shareholder in HLF, holding 9,253,500 shares or 9.35% stake. With a 3.06% stake in HLF, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 3,031,040 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.47% of HLF stock, is the second-largest Mutual Fund holder. It holds 2,447,765 shares valued at 36.77 million. iShares Russell 2000 ETF holds 2.24% of the stake in HLF, owning 2,212,536 shares worth 33.23 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, HLF reported revenue of $1.39B and operating income of $155.80M. The EBITDA in the recently reported quarter was $186.70M and diluted EPS was $0.88.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HLF since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With HLF analysts setting a high price target of $33.00 and a low target of $12.00, the average target price over the next 12 months is $20.70. Based on these targets, HLF could surge 128.06% to reach the target high and fall by -17.07% to reach the target low. Reaching the average price target will result in a growth of 43.05% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded HLF stock several times over the past three months with 2 Buys and 0 Sells. In these transactions, 14,776 shares were bought while 0 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 1,215,068 while 295,798 shares were sold.

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