Herbalife (NYSE:HLF) to Repurchase $250.00 million in Outstanding Stock

Herbalife (NYSE:HLF) announced that its Board of Directors has initiated a share repurchase program on Tuesday, September 8th, RTT News reports. The company plans to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 19.3% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Herbalife Stock Down 3.3%

HLF opened at $12.21 on Friday. Herbalife has a 12-month low of $7.56 and a 12-month high of $20.40. The business has a 50 day moving average of $12.34 and a 200-day moving average of $13.70. The stock has a market cap of $1.28 billion, a price-to-earnings ratio of 7.88, a PEG ratio of 0.42 and a beta of 0.85.

Herbalife (NYSE:HLF) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.03). Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same period in the prior year, the business earned $0.59 EPS. The company’s revenue for the quarter was up 5.4% compared to the same quarter last year. As a group, analysts expect that Herbalife will post 2.68 earnings per share for the current year.

Wall Street Analyst Weigh In

HLF has been the subject of several recent analyst reports. Weiss Ratings downgraded Herbalife from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, July 24th. Wall Street Zen lowered shares of Herbalife from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Citigroup reaffirmed a “buy” rating and set a $17.00 price target (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $17.00.

About Herbalife

Herbalife Nutrition Ltd. (NYSE: HLF) operates as a global multi-level marketing company specializing in weight-management, nutritional supplement, sports nutrition and personal care products. Its portfolio includes protein shakes, vitamins, energy and fitness supplements, hydration products and skin and hair care items, all formulated to support wellness, performance and healthy living. Products are manufactured in GMP-certified facilities to ensure consistent quality and safety standards.

Founded in 1980 by Mark R.