Company Update (NYSE:HLF): Herbalife Ltd. Responds To The Dismissal Of Abdul Awad Vs. Herbalife Ltd., et al

Global nutrition company Herbalife Ltd. (NYSE:HLF) issued the following statement: “For the third time, the judge has ruled in our favor, this time dismissing the claims with prejudice. We are obviously pleased with the judge’s decision.”. (Original Source)

The shareholder suit was first filed in April 2014 by investor Abdul Awad. The pension fund took over as lead plaintiff in July 2014. The suit alleged that Herbalife and its executives inflated the company’s stock price by failing to disclose that its business was based on a pyramid scheme. Herbalife also published “materially false” financial statements and hid that it pressured its members to buy more products to resell as distributors, according to the suit.

Shares of Herbalife are trading almost flat at $58.15, as of 12:05PM EST. HLF has a 1-year high of $61.95 and a 1-year low of $27.60. The stock’s 50-day moving average is $55.59 and its 200-day moving average is $54.28.

On the ratings front, Herbalife has been the subject of a number of recent research reports. In a report issued on November 4, Canaccord Genuity analyst Mark Sigal maintained a Buy rating on HLF, with a price target of $61, which implies an upside of 5.2% from current levels. Separately, on the same day, Pivotal Research’s Timothy Ramey maintained a Buy rating on the stock and has a price target of $85.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mark Sigal and Timothy Ramey have a total average return of -10.3% and 8.1% respectively. Sigal has a success rate of 33.3% and is ranked #3199 out of 3641 analysts, while Ramey has a success rate of 61.8% and is ranked #601.

Overall, one research analyst has assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $73.00 which is 25.9% above where the stock opened today.

Herbalife Ltd is a nutrition company. The Company along with its subsidiaries sells weight management, targeted nutrition, energy, sports & fitness, and outer nutrition products.


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