NEW YORK (TheStreet) -- Shares of Nu Skin Enterprises (NUS) - Get Report are higher by 11.84% to $45.44 on heavy trading volume Thursday afternoon, after the company received a $210 million investment from a group of Chinese investors and issuing upbeat guidance.
Under the terms of the agreement, Nu Skin would offer convertible senior notes due 2020 to Ping An ZQ China Growth, which consists of a consortium of investors led by Ping An of China Securities and other investors affiliated with ZQ Capital. The offering will close by June 21.
In exchange, ZQ Capital's Shen Zheqing would join Nu Skin's board, the Wall Street Journal reports.
Nu Skin will use part of the money on operations in China and will put the remainder toward repurchasing some of its stock, CFO Ritch Wood said in a statement.
Additionally, the skin-care and nutritional products maker announced that it expects second-quarter revenue near the high end or slightly above its previous forecast of between $560 million and $580 million, according to the Journal.
About 2.43 million shares of the company have been traded so far today vs. its average trading volume of roughly 776,114 shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Nu Skin's strengths such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.
You can view the full analysis from the report here: NUS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.