USANA has been upgraded by Zacks Investment Research. Previously, the company had a hold rating, but now that has been changed to a buy rating. So, what does that mean for investors in this company and the market in general? A hold rating typically means the company is performing with the market, or along the same lines and expectations as other companies like it. Investors who already have a position with this company should hold that position, instead of buying or selling. But people who haven’t bought should wait and not buy.
When a company is upgraded to a buy rating, though, that means the company is expected to perform better than the market average or better than other companies like it. Investors who don’t have positions with that company may want to buy shares of it at that time, since experts assume that the company will start to outperform the market and its competitors in the near future. That is what’s happening with USANA Cellsentials, which are supplements that are doing well in the market both with investors and consumers. The strong showing of USANA has led those in the know to suggest buying into the company could be the right financial move at this time.
Right now, Zacks has a $98.00 target price on the company’s stock. As the company creates more products for consumers and offers them more options that can help support their health and wellness, USANA has also seen significant growth. That has pleased investors and helped consumers also feel more comfortable about what the company is able to offer. With nutritional, weight management, and personal care supplements that are high quality, USANA Cellsentials are popular in the market today.
Distribution of the company’s products is growing rapidly as more customers experience the value of USANA’s offerings. With three different areas to explore, the company is also committed to providing more wellness opportunities to their customer base and to future customers, as well. But Zacks isn’t the only investment company that has increased their perceived value of USANA’s stock. Other companies are also starting to indicate that USANA could be one to watch in the coming weeks as its value and growth continue in the market.
Roth Capital raised a price objective on USANA stock and also added their own buy rating. They noted that the move to do that was a valuation call, because they felt that the stock would continue to rise. USANA is seeing investors show more interest in the present day than they did in the past, and that comes partially from investment research firms like Zacks and Roth Capital suggesting that the stock is a better buy than the competition. The idea that USANA Cellsentials and other products from the company may outperform market expectations is a good one for the company.
But that prediction is also a good one for the consumers who want the product and the investors who are interested in all the company has to offer. It seems as though everyone involved in benefiting from the quality personal care, nutritional, and weight loss supplements produced by USANA. After the buy recommendations were made, USANA stock opened at just over $98.00 per share. Its 50-day moving average price was slightly over $81.00 per share, with its 200-day moving average near $79.00 per share. All indications are that the stock is currently rising in value.
When compared to other companies like it on the market, the expectation is that USANA’s stock will climb at a stronger rate and those who invest in the company now may have a better position than those who choose to wait. With a market capitalization of more than $2 billion, USANA has consistently posted quarterly earnings that have met or exceeded what was expected by investors and analysts. On a year-over-year basis, the company’s revenue rose more than 14%. One of the current issues USANA is facing is the concern that its shares may be undervalued by the market.
An indication of that is the share repurchase program that has been initiated by members of its board. The company is authorized to repurchase up to $150.00 million in shares. That will allow the company to buy back just over 8% of its total, outstanding stock through purchases on the open market. While this does not necessarily mean that the board thinks the company’s shares are undervalued, it is generally a good indication that this is the case. Buying back the stock at this time will allow the company to collect many of its shares at a lower price and could potentially drive up the price of its stock, as well.
Several hedge funds have recently chosen to reduce their stakes in USANA, but many others have added to their stakes in the company. That shows a slight difference of opinion in the market, but nothing to be concerned about. Euclidean Technologies Management LLC lifted the position it had in USANA by nearly 14% in its fourth quarter, and owns 24,973 shares of its stock. Duality Advisers LP purchased new stake in USANA in its fourth quarter, as did Quantinno Capital Management LP and ProShare Advisors LLC. Royce & Associates LP lifted its position in the company by 16.5% in the fourth quarter. Just over 54% of USANA’s stock is now owned by institutional investors.
The USANA Cellsentials line is one of the biggest sellers for the supplement company. This line of vitamin and mineral supplements provides health and wellness support for total body nutrition. Some of the company’s offerings target specific support for areas of the body such as the digestive and cardiovascular systems. Nutritional supplements such as snacks, shakes, and related products are also offered by USANA in an effort to provide additional support to those who are looking at their overall health with care.
Now that USANA’s stock has been upgraded from hold to buy status, investors who might have been unsure about the company may make their move. That could increase the price per share for USANA, and help reduce any undervaluing of current stock that the company’s board might be concerned about. The buying back of shares could be an indication of this concern, but there could also be other reasons why the company would make this choice. Additionally, USANA Cellsentials are continuing to increase in market share and could lead more consumers and investors to get involved in what else the company has to offer.
It’s possible that the opinion of Zacks Investment Research and Roth Capital will change in the future and they will go back to suggesting that USANA stocks be held by those who have them instead of purchased by those who don’t. But for now, the consensus is that the stock is going to perform above expectations for the market and above the current performance of USANA’s competition, as well. With that being the case, the focus is on addressing what investors will do next and how their buying or holding habits will change the price per share when it comes to USANA stock.
By adding that buy rating to the buyback of stock the company is going to do, it’s possible that rapid change in the stock price for USANA will be seen. It’s also likely that more investors will take on this stock, as they see the company as one that appears to be going places. USANA continues to grow, and the company develops new supplements and nutritional options to provide support for overall good health. A lot of people are looking for that type of support for their lifestyle, which is helping to propel the company forward and giving it even more opportunities to be successful in the market and in the eyes of potential investors, as well.