Nu Skin Enterprises (NUS) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Nu Skin Enterprises (NYSE:NUS) from a hold rating to a sell rating in a research report released on Tuesday morning.

According to Zacks, “Nu Skin’s shares have underperformed the industry in the past three months, thanks to dismal gross margins and adverse impacts from currency fluctuations. In fact, the company’s gross margin has been slipping since the past several quarters. This emerges as a considerable threat to profitability. Moreover, the company’s bottom-line in the third-quarter was hurt by foreign currency translation losses of almost 7 cents. Management expects currency translations to dent earnings in 2018. On the bright side, Nu Skin has been steadily gaining from expanding sales leaders and customers. Notably, these upsides aided third-quarter 2018 results, marking its fourth consecutive period of year-on-year top- and bottom-line increases. The company plans to further empower sales leaders through improved training and technological enhancements. Further, it relies on social media as well as product and marketing programs to widen customer reach.”

Other equities analysts have also issued research reports about the stock. Jefferies Financial Group restated a buy rating and set a $92.00 price objective on shares of Nu Skin Enterprises in a research report on Thursday, November 8th. Tigress Financial restated a buy rating on shares of Nu Skin Enterprises in a research report on Wednesday, November 21st. Citigroup set a $88.00 price objective on shares of Nu Skin Enterprises and gave the company a buy rating in a research report on Thursday, November 8th. Bank of America restated an underperform rating and set a $65.00 price objective (down previously from $75.00) on shares of Nu Skin Enterprises in a research report on Thursday, December 6th. Finally, DA Davidson assumed coverage on shares of Nu Skin Enterprises in a research report on Tuesday, October 9th. They set a buy rating and a $92.00 price objective for the company. Two research analysts have rated the stock with a sell rating, two have given a hold rating and six have issued a buy rating to the company. The company currently has an average rating of Hold and an average price target of $83.63.

Shares of NYSE:NUS traded up $0.34 during trading hours on Tuesday, hitting $62.01. 15,463 shares of the company’s stock traded hands, compared to its average volume of 362,925. Nu Skin Enterprises has a 52 week low of $56.09 and a 52 week high of $88.68. The company has a current ratio of 1.93, a quick ratio of 1.25 and a debt-to-equity ratio of 0.44. The firm has a market cap of $3.41 billion, a price-to-earnings ratio of 19.20, a price-to-earnings-growth ratio of 1.41 and a beta of 0.93.

Nu Skin Enterprises (NYSE:NUS) last posted its quarterly earnings data on Wednesday, November 7th. The company reported $0.94 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.96 by ($0.02). Nu Skin Enterprises had a net margin of 5.93% and a return on equity of 27.50%. The business had revenue of $675.31 million for the quarter, compared to the consensus estimate of $664.99 million. During the same quarter last year, the business posted $0.76 EPS. The business’s revenue for the quarter was up 19.8% on a year-over-year basis. On average, research analysts forecast that Nu Skin Enterprises will post 3.51 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 12th. Shareholders of record on Friday, November 30th were paid a dividend of $0.365 per share. This represents a $1.46 dividend on an annualized basis and a yield of 2.35%. The ex-dividend date of this dividend was Thursday, November 29th. Nu Skin Enterprises’s dividend payout ratio is presently 45.20%.

In other Nu Skin Enterprises news, General Counsel D Matthew Dorny sold 2,500 shares of the company’s stock in a transaction dated Monday, December 3rd. The shares were sold at an average price of $67.53, for a total transaction of $168,825.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold 6,250 shares of company stock valued at $407,925 over the last ninety days. Insiders own 3.00% of the company’s stock.

A number of hedge funds have recently bought and sold shares of NUS. Los Angeles Capital Management & Equity Research Inc. lifted its stake in Nu Skin Enterprises by 410.1% during the third quarter. Los Angeles Capital Management & Equity Research Inc. now owns 427,800 shares of the company’s stock valued at $35,259,000 after buying an additional 343,935 shares in the last quarter. Renaissance Technologies LLC lifted its stake in Nu Skin Enterprises by 51.1% during the second quarter. Renaissance Technologies LLC now owns 814,000 shares of the company’s stock valued at $63,647,000 after buying an additional 275,200 shares in the last quarter. Assenagon Asset Management S.A. lifted its stake in Nu Skin Enterprises by 524.5% during the third quarter. Assenagon Asset Management S.A. now owns 295,551 shares of the company’s stock valued at $24,359,000 after buying an additional 248,222 shares in the last quarter. Point72 Asset Management L.P. purchased a new stake in shares of Nu Skin Enterprises in the third quarter worth approximately $12,882,000. Finally, WINTON GROUP Ltd lifted its position in shares of Nu Skin Enterprises by 1,623.7% in the third quarter. WINTON GROUP Ltd now owns 158,268 shares of the company’s stock worth $13,044,000 after purchasing an additional 149,086 shares in the last quarter. 74.57% of the stock is owned by institutional investors.

Nu Skin Enterprises Company Profile

Nu Skin Enterprises, Inc develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide. It provides skin care systems and targeted treatment products, including ageLOC Me customized skin care systems, ageLOC Spa systems, and ageLOC LumiSpa skin treatment and cleansing devices; and Epoch products, as well as a range of other cosmetic, personal care, and hair care products.

Further Reading: Quiet Period

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