NEW YORK (TheStreet) -- Shares of Herbalife (HLF) were e down 3% to $58.74 in morning trading Thursday, following a 7% drop on Wednesday. Trading of the stock was halted briefly on Wednesday, after the nutrition and weight loss company announced it was being investigated by the Federal Trade Commission.
Herbalife has been in the spotlight all week after a New York Times article on Sunday revealed investor Bill Ackman was using lobbying efforts to get the company investigated by Congress.
Herbalife stock shot up after the article came out but has seen a sharp decline in the aftermath of yesterdays news. The investigation is not evidence of any wrongdoing, but it has been enough to scare away some investors.
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TheStreet Ratings team rates HERBALIFE LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERBALIFE LTD (HLF) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."