In a recent transaction, Herbalife Ltd. (NYSE:HLF) executive Henry C. Wang, who serves as the company's EVP and General Counsel, has increased his stake in the company with a purchase of shares valued at approximately $25,835. The transaction, which took place on March 26, 2024, involved the acquisition of 2,778 shares of Herbalife common stock at a price of $9.30 per share.
This latest purchase by Wang is part of a series of transactions that have adjusted his holdings in the nutrition and weight management company. Following the acquisition, Wang now owns a total of 176,194 shares of Herbalife Ltd. It is important to note that this total includes an additional 400 shares that Wang purchased on August 20, 2014, at $25.02 per share. These shares were not previously reported due to an administrative error but have now been disclosed in the recent filing.
Investors often keep a close eye on insider transactions as they can provide insights into how executives view the company's current valuation and future prospects. The fact that Wang has chosen to increase his investment in Herbalife could be interpreted as a signal of confidence in the company's direction and performance.
The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission, which was signed by Alaaeddine Sahibi, as Attorney-In-Fact for Henry Wang, on March 27, 2024.
Herbalife Ltd., headquartered in George Town, has a presence in the wholesale distribution of drugs, proprietaries, and drugstore sundries. The company has undergone several name changes in its history, with the most recent being from Herbalife Nutrition Ltd. to Herbalife Ltd. in April 2018.
InvestingPro Insights
Herbalife Ltd. (NYSE:HLF) has been a topic of discussion among investors, especially following the recent insider share purchase by executive Henry C. Wang. To provide further context to this transaction and the company's current financial standing, let's delve into some key metrics and insights from InvestingPro.
With a market capitalization of approximately $944.98 million, Herbalife's valuation paints an interesting picture. The company is currently trading at a low earnings multiple, with a P/E ratio of 6.57 and an adjusted P/E ratio for the last twelve months as of Q4 2023 sitting at an even lower 5.12. This suggests that the stock may be undervalued, especially considering the InvestingPro Tip that the valuation implies a strong free cash flow yield.
Additionally, despite a recent price decline, with a 3-month price total return of -38.51%, Herbalife's fundamentals remain robust. The company has been profitable over the last twelve months, and analysts predict it will continue to be profitable this year. This aligns with another InvestingPro Tip highlighting the high shareholder yield, which can be particularly attractive to value investors.
For those interested in gaining more insights and tips on Herbalife Ltd., InvestingPro offers a total of 8 additional tips, which could further inform investment decisions. To explore these tips and enhance your investment strategy, consider subscribing to InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It's also worth noting that the company's revenue for the last twelve months as of Q4 2023 was $5.062 billion, with a gross profit margin of 43.7%, reflecting a solid foundation in terms of income generation and profitability.
Investors monitoring Herbalife's stock performance and considering the recent insider buying activity may find these insights and data points from InvestingPro to be valuable in assessing the company's potential for future growth and investment suitability.
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