Shares of Herbalife Ltd. (HLF) dipped 12% to $39.95 into the close as desks kept speculating on unconfirmed rumors that Carl Icahn, who holds a 17% stake in the multi-level marketer, is unwinding his position. The rumor prompted ticker at one point on Monday to hit a 52-week low of $38.63. It closed below the $40 level for the first time since July 2013.
Bill Ackman, who has called Herbalife a pyramid scheme and his Pershing Square hedge fund has a $1B short bet against the company, must be a happy man right now. HLF’s pps has now plunged by nearly 50% this year.
Herbalife Ltd. shares are currently priced at 8.79x this year’s forecasted earnings compared to the industry’s 21.10x earnings multiple. Ticker has a PEG and forward P/E ratio of 0.51 and 5.59, respectively. Price/Sales for the same period is 0.81 while EPS is $4.58. Currently, HLF has a median Wall Street price target of $80.00 with a high target of $94.00.
In the past 52 weeks, shares of George Town, the Cayman Islands-based company have traded between a low of $38.63 and a high of $83.51 and are up in after-hours at $40.21. Shares are down 42.32% year-over-year and 48.91% year-to-date.
The chart below shows where the equity has traded over the last 10 trading sessions.