What Happened?

Shares of health and wellness products company Herbalife (NYSE: HLF) fell 2.8% in the morning session after investor concerns grew over the company's financial health, highlighted by shrinking sales and sluggish growth forecasts. 

Analysis pointed to shrinking unit sales over the previous two years and a projected sales growth of only 2.9% for the next twelve months, suggesting weak demand. Furthermore, the company's earnings per share had decreased more than its revenue, partly because it diluted shareholders. Adding to the negative sentiment were potential business risks, including regulatory compliance and uncertain consumer demand. An analyst from Mizuho also previously set a price target of $11.00, which implied an expectation for the stock to fall.

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What Is The Market Telling Us

Herbalife’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 12 days ago when the stock gained 10.8% on the news that Argus Research upgraded its rating on the company's stock to 'Buy' from 'Hold' and set a new price target of $15. .

The research firm pointed to expected revenue growth from new products as the key reason for its positive view. Argus projected that Herbalife would achieve mid-single-digit revenue growth in 2025, which would end a three-year period of declines. The firm specifically noted two products, a skin-health product called HL/Skin and a weight-loss supplement named MultiBurn, as likely drivers for accelerated growth in 2026. The upgrade suggested a potential positive outlook for the company's future performance.

Herbalife is up 77.5% since the beginning of the year, but at $11.86 per share, it is still trading 11.1% below its 52-week high of $13.34 from November 2025. Investors who bought $1,000 worth of Herbalife’s shares 5 years ago would now be looking at an investment worth $240.03.

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