Herbalife Ltd (HLF): A Technical Analysis

Herbalife Ltd (NYSE: HLF) has a higher price-to-earnings ratio of 10.25x compared to its average ratio. HLF has 36-month beta value of 1.22. Analysts have mixed views on the stock, with 1 analysts rating it as a “buy,” 1 as “overweight,” 3 as “hold,” and 0 as “sell.”

The public float for HLF is 97.39M, and currently, short sellers hold a 16.03% ratio of that float. The average trading volume of HLF on August 27, 2024 was 2.12M shares.

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HLF) stock’s latest price update

Herbalife Ltd (NYSE: HLF) has experienced a decline in its stock price by -2.74 compared to its previous closing price of 8.59. However, the company has seen a gain of 2.77% in its stock price over the last five trading days. businesswire.com reported 2024-08-22 that LOS ANGELES–(BUSINESS WIRE)–Herbalife Ltd. (NYSE: HLF), a premier health and wellness company, community and platform, today announced John DeSimone, Chief Financial Officer, will participate in a fireside chat at the Barclays Global Consumer Staples Conference on Tuesday, September 3, 2024 at 12:00 p.m. ET (9:00 a.m. PT). A link to the live webcast will be available under the Investor Relations section of Herbalife’s website at https://ir.herbalife.com/. A replay of the webcast will also be.

HLF’s Market Performance

HLF’s stock has risen by 2.77% in the past week, with a monthly drop of -32.46% and a quarterly drop of -22.78%. The volatility ratio for the week is 3.94% while the volatility levels for the last 30 days are 5.82% for Herbalife Ltd The simple moving average for the past 20 days is -9.01% for HLF’s stock, with a -23.63% simple moving average for the past 200 days.

Analysts’ Opinion of HLF

Many brokerage firms have already submitted their reports for HLF stocks, with B. Riley Securities repeating the rating for HLF by listing it as a “Buy.” The predicted price for HLF in the upcoming period, according to B. Riley Securities is $17 based on the research report published on August 01, 2024 of the current year 2024.

DA Davidson, on the other hand, stated in their research note that they expect to see HLF reach a price target of $13.50. The rating they have provided for HLF stocks is “Neutral” according to the report published on September 14th, 2023.

Mizuho gave a rating of “Neutral” to HLF, setting the target price at $13 in the report published on June 07th of the previous year.

HLF Trading at -19.36% from the 50-Day Moving Average

After a stumble in the market that brought HLF to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -46.95% of loss for the given period.

Volatility was left at 5.82%, however, over the last 30 days, the volatility rate increased by 3.94%, as shares sank -32.69% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -23.97% lower at present.

During the last 5 trading sessions, HLF rose by +2.58%, which changed the moving average for the period of 200-days by -37.43% in comparison to the 20-day moving average, which settled at $8.98. In addition, Herbalife Ltd saw -45.25% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at HLF starting from Mendoza Juan Miguel, who purchase 6,721 shares at the price of $8.01 back on Aug 13 ’24. After this action, Mendoza Juan Miguel now owns 100,000 shares of Herbalife Ltd, valued at $53,835 using the latest closing price.

Mendoza Juan Miguel, the Director of Herbalife Ltd, purchase 7,000 shares at $10.65 during a trade that took place back on May 10 ’24, which means that Mendoza Juan Miguel is holding 93,279 shares at $74,550 based on the most recent closing price.

Stock Fundamentals for HLF

Current profitability levels for the company are sitting at:

  • 0.06 for the present operating margin
  • 0.76 for the gross margin

The net margin for Herbalife Ltd stands at 0.02. The total capital return value is set at 0.2.

Based on Herbalife Ltd (HLF), the company’s capital structure generated 1.77 points at debt to capital in total, while cash flow to debt ratio is standing at 0.12. The debt to equity ratio resting at -2.29. The interest coverage ratio of the stock is 1.83.

Currently, EBITDA for the company is 482.2 million with net debt to EBITDA at 5.15. When we switch over and look at the enterprise to sales, we see a ratio of 0.6. The receivables turnover for the company is 52.63for trailing twelve months and the total asset turnover is 1.94. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.24.

Conclusion

To put it simply, Herbalife Ltd (HLF) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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