Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Herbalife rallies as billionaire investor Carl Icahn increases stake

Monday, March 13, 2017 7:17
% of readers think this story is Fact. Add your two cents.

Nutrition and weight management company Herbalife Ltd. (NYSE:HLF) has received a boost today after billionaire investor Carl Icahn bought an extra stake for $19.1mln.

Shares rose 2.78% to $53.70 in early trading.

Icahn disclosed today in a S-4 filing with the Securities and Exchange Commission that he purchased a further 372,324 shares in the group just as the stock was falling to a two-month low.

He bought stock at $51.35 each, increasing his holding in the company to 22.9mln shares or 24.6% of the shares outstanding. Ichan is the group’s largest shareholder.

Herbalife’s shares had fallen 16% in the previous three weeks and has lost 8.3% over the past 12 months.

The company issued a weak outlook on 23 February due to currency headwinds as it reported its fourth quarter results. It cuts its guidance for fiscal 2017 to adjusted earnings of $3.65 to $4.05 per share from a previous estimate of $4.60 to $5.00 per share.

For the first quarter, the company projected sales to drop 5% to 9% from the same period last year, reflecting a decline in volumes.

Icahn’s confidence in the company comes in contrast to billionaire William Ackman’s negative view on the stock. Ackman has called Herbalife a “pyramid scheme” and said he has bet $1bn that its shares would fall. 

Story by ProactiveInvestors


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative



Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.