Insider’s View: Deciphering Herbalife Ltd (HLF)’s Financial Health Through Ratios

Investors seeking to outperform the market often focus on hand-picking stocks. Selecting the right ones has proven to be a key factor in boosting wealth.

The price of Herbalife Ltd (NYSE: HLF) closed at $9.24 in the last session, up 1.65% from day before closing price of $9.09. In other words, the price has increased by $1.65 from its previous closing price. On the day, 1.13 million shares were traded. HLF stock price reached its highest trading level at $9.405 during the session, while it also had its lowest trading level at $9.06.

Ratios:

We take a closer look at HLF’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 1.56 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 4.14. For the most recent quarter (mrq), Quick Ratio is recorded 0.70 and its Current Ratio is at 1.10.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, DA Davidson on September 14, 2023, initiated with a Neutral rating and assigned the stock a target price of $13.50.

On June 07, 2023, Mizuho started tracking the stock assigning a Neutral rating and target price of $13.

On February 03, 2023, BofA Securities started tracking the stock assigning a Underperform rating and target price of $14.BofA Securities initiated its Underperform rating on February 03, 2023, with a $14 target price.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Mar 26 ’24 when Mendoza Juan Miguel bought 16,079 shares for $9.40 per share. The transaction valued at 151,143 led to the insider holds 54,622 shares of the business.

Macadrai Rodica bought 5,332 shares of HLF for $50,121 on Mar 26 ’24. The Director now owns 18,048 shares after completing the transaction at $9.40 per share. On Mar 26 ’24, another insider, Wang Henry C, who serves as the EVP, General Counsel of the company, bought 2,778 shares for $9.30 each. As a result, the insider paid 25,835 and bolstered with 176,194 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, HLF now has a Market Capitalization of 922029120 and an Enterprise Value of 3096589824. As of this moment, Herbalife’s Price-to-Earnings (P/E) ratio for their current fiscal year is 6.50, and their Forward P/E ratio for the next fiscal year is 3.44. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.18. Its current Enterprise Value per Revenue stands at 0.612 whereas that against EBITDA is 5.911.

Stock Price History:

Over the past 52 weeks, HLF has reached a high of $19.48, while it has fallen to a 52-week low of $6.68. The 50-Day Moving Average of the stock is 3.16%, while the 200-Day Moving Average is calculated to be -28.15%.

Shares Statistics:

According to the various share statistics, HLF traded on average about 2.49M shares per day over the past 3-months and 2197200 shares per day over the past 10 days. A total of 99.20M shares are outstanding, with a floating share count of 95.80M. Insiders hold about 3.99% of the company’s shares, while institutions hold 105.92% stake in the company. Shares short for HLF as of 1711584000 were 12066931 with a Short Ratio of 4.85, compared to 1709164800 on 13787987. Therefore, it implies a Short% of Shares Outstanding of 12066931 and a Short% of Float of 15.39.

Dividends & Splits

The stock’s 5-year Average Dividend Yield is 1.7.

Earnings Estimates

The company has 3.0 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.34 for the current quarter, with a high estimate of $0.37 and a low estimate of $0.31, while EPS last year was $0.54. The consensus estimate for the next quarter is $0.67, with high estimates of $0.71 and low estimates of $0.63.

Analysts are recommending an EPS of between $2.3 and $1.82 for the fiscal current year, implying an average EPS of $2.06. EPS for the following year is $2.64, with 4.0 analysts recommending between $2.83 and $2.31.

Revenue Estimates

According to 5 analysts, the current quarter’s revenue is expected to be $1.26B. It ranges from a high estimate of $1.27B to a low estimate of $1.23B. As of the current estimate, Herbalife Ltd’s year-ago sales were $1.25BFor the next quarter, 5 analysts are estimating revenue of $1.33B. There is a high estimate of $1.35B for the next quarter, whereas the lowest estimate is $1.32B.

A total of 5 analysts have provided revenue estimates for HLF’s current fiscal year. The highest revenue estimate was $5.19B, while the lowest revenue estimate was $5.08B, resulting in an average revenue estimate of $5.12B. In the same quarter a year ago, actual revenue was $5.06BBased on 5 analysts’ estimates, the company’s revenue will be $5.35B in the next fiscal year. The high estimate is $5.45B and the low estimate is $5.3B.

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