Market Overview

Long-Time Bull on Herbalife Could Soon Be Advising Fourth-Largest Shareholder

Related HLF
Will Herbalife (HLF) Miss Earnings Estimates Again?
IBM's Report Weighs On The Dow, Apple Helps Boost The Nasdaq, S&P 500 Extends Winning Streak
Global Jitters Send Wall Street Tumbling (Fox Business)

Herbalife (NYSE: HLF) shares finished the day on a strong note Monday afternoon, pushing from $61 around 12PM EST to close up more than 6 percent at $64.06. Investors in the name were responding to a rumor suggesting a bullish sell-side analyst has left his firm in order to advise a possible suitor for Herbalife.

According to a tweet from Fox Business News' Charlie Gasparino earlier, DA Davidson's Timothy Ramey has left the firm in order to work with Post Holdings' (NYSE: POST) Chairman and CEO Bill Stiritz.

Now a few disclaimers which make the rumor a lot more interesting:

  • in November of 2013, Stiritz disclosed a raised position in Herbalife (from 5.31 percent as of August 26th to 6.38 percent) and also announced he would consider getting involved in a leveraged buyout of Herbalife, and
  • Ramey's coverage on Herbalife at DA Davidson with a Buy rating and $115 price target placed him as the most bullish analyst on the Street.

Although the move higher in Herbalife shares Monday afternoon comes on the heels of a recent 20-plus percent decline since the beginning of 2014, investors in the stock are clearly cheering the possibility a fan of the company could soon be advising one of the largest shareholders.

Latest Ratings for HLF

DateFirmActionFromTo
Oct 2014Pivotal ResearchInitiates Coverage onBuy
Mar 2014Argus ResearchDowngradesBuyHold
Jan 2014DA DavidsonTerminatesBuy

View More Analyst Ratings for HLF
View the Latest Analyst Ratings

Posted-In: Analyst Color News Rumors Hot Analyst Ratings Movers

 

Related Articles (HLF + POST)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga Professional