Herbalife Gets a Buy Rating from Pivotal Research


In a report released today, Timothy Ramey from Pivotal Research assigned a Buy rating to Herbalife (NYSE: HLF), with a price target of $75. The company’s shares opened today at $50.

Ramey said:

“We estimate Icahn now holds 28.9% of shares outstanding on a pro-forma basis, down from 34.4% before the tender; still about 2x his “normal” position, so we suspect he may have more to sell. We’re fine with that – we always assumed Icahn would sell into an ebullient market if he didn’t take HLF private. This makes the go-private transaction unlikely however.”

According to TipRanks.com, Ramey is a 4-star analyst with an average return of 12.0% and a 63.1% success rate. Ramey covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Post Holdings Inc, and Brown-Forman B.

Herbalife has an analyst consensus of Moderate Buy, with a price target consensus of $61.50.

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Based on Herbalife’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $82.1 million. In comparison, last year the company had a net profit of $85.2 million.

Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Edi Hienrich, the SVP of HLF bought 16,582 shares for a total of $732,259.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Herbalife Nutrition Ltd. is a holding company, which engages in the development and sale of nutrition solutions. It operates through the following segments: North America; Mexico; South and Central America; Europe, Middle East, and Africa; Asia pacific; and China.

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