Juan Mendoza, a director of Herbalife Ltd (HLF, Financial), has increased his stake in the company by purchasing 16,079 shares on March 26, 2024, according to a recent SEC filing. This transaction has expanded Mendoza's holdings in the nutrition and weight management company, following a pattern of consistent buying activity over the past year.
Over the last twelve months, Juan Mendoza has bought a total of 27,000 shares of Herbalife Ltd and has not sold any shares. This pattern of insider buying may be of interest to investors and analysts who track such transactions as indicators of executive confidence in the company's prospects.
Herbalife Ltd is a global nutrition company that develops and sells dietary supplements and personal care products. The company operates through a network of independent distributors and has a presence in multiple countries around the world.
The insider transaction history for Herbalife Ltd shows a trend of more buying than selling among insiders. There have been 8 insider buys and only 1 insider sell over the past year, suggesting a general optimism among those with intimate knowledge of the company.
On the date of the insider's recent purchase, shares of Herbalife Ltd were trading at $9.4, giving the company a market cap of $944.98 million. The price-earnings ratio of 6.67 is below both the industry median of 18.06 and the company's historical median, indicating a lower valuation relative to peers and its own past.
The stock's price-to-GF-Value ratio stands at 0.44, with a GF Value of $21.43. This suggests that Herbalife Ltd is significantly undervalued according to GuruFocus's intrinsic value estimate, which takes into account historical trading multiples, an adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
The GF Value is a proprietary metric used by GuruFocus to estimate the fair value of a stock, providing investors with a benchmark for comparing current prices with intrinsic value estimates.
Investors may consider the insider buying activity, the company's valuation metrics, and the GF Value as factors in their investment decisions regarding Herbalife Ltd.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
