Cramer -- Be Careful With Herbalife Despite Those Surprising Earnings

NEW YORK (TheStreet) -- Herbalife (HLF) jumped 16.5% on Wednesday after the company's surprising beat on earnings per share and revenue for the first quarter. 

TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS portfolio, wasn't overly impressed. He said the company's results were "tepid" in many regions but had a "big upside surprise" in China, he said on CNBC's "Stop Trading" segment. 

Analysts at Canaccord Genuity, however, were inspired to boost their price target to $53 from $50 and maintained a buy rating on the stock. 

Still, Cramer is urging caution, saying now is not the time to go all-in into Herbalife.

HLF Chart
Herbalife HLF data by YCharts

"I want to urge people to be careful," Cramer said, reminding investors Herbalife is the subject of a number of probes and that Bill Ackman, a big-time hedge fund manager, is actively working for this company's demise. 

Ackman has a sizable short position in Herbalife and it's his "mission" to see this company fail, Cramer said. All Ackman needs to do is go on TV to talk about the stock and that will likely result in the stock falling.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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