Herbalife (NYSE:HLF) Plans to Fight Back Against Recent Claims; Stock Tumbles – HLF, NUS, USNA, MTEX

The nutritional supplements company Herbalife Ltd (NYSE:HLF) is just going to fight back against recent charges that have hit its stock price and reputation.

The Cayman Islands based company reported on Monday that it will hold an analyst day on Jan 10 to talk about its business model. Herbalife also reported that it has retained investment bank Moelis & Co as a strategic adviser.

Shares of Herbalife plunged sharply previous week after hedge fund manager William Ackman reported that he believes the company is a pyramid scheme and that he has been shorting the stock for numerous months. The corporation has vehemently denied the claims several times.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Nu Skin Enterprises, Inc. (NYSE:NUS) fell -4.23% to settle at $33.05, USANA Health Sciences, Inc. (NYSE:USNA) moved down -3.96% to end at $32.49 while Mannatech, Inc. (NASDAQ:MTEX) dropped -3.05% to finish at $6.35 on Monday.

Herbalife Ltd. (NYSE:HLF) last session’s volume of 19.30 million shares was surprisingly higher than its average volume of 5.20 million shares. The stock after opening at $28.03 hit high price of $28.25 and then closed at $26.06 by scoring -4.44%.

The liquidity measure in recent quarter results of the company was recorded 1.39 as current ratio and on the other side the debt to equity ratio was 1.35 and long-term debt to equity ratio remained at 1.21. The Company had total cash of $321.72 million at hand and a book value per share as $3.44 in the most recent quarter.

The stock’s price volatility was 16.70% for a week and 6.17% for a month as well as price volatility’s Average True Range for 14 days was 2.45 and its beta remained at 1.67.

HLF generated revenue of $3.90 billion in the previous twelve months and earned $464.67 million. The Company showed a positive 11.92% in the net profit margin as well as in its operating margin which remained at 16.32%. Company’s annual sales growth for the past five years was 12.87%.

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