Shares of the company fell 14% Friday based on a Financial Times report that it is under a criminal probe by the DOJ. The stock is bouncing back following the company's statement.
"We have not received any formal nor informal request for information from either (the Justice Department or the FBI),'' Herbalife said. "We take our public disclosure obligations very seriously."
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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 a few notable strengths, 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."