Home Business Insights & Advice USANA health sciences moves from hold to buy status

USANA health sciences moves from hold to buy status

by John Saunders
5th May 21 2:21 pm

Zack Investment Research upgraded USANA Health Sciences from the current “hold” position to a “buy” rating. The organisation released the updated information in a research report it released to its investors and clients in February. At the time of this release, the company had a $98 target price on its stock. The move signals the company’s confidence in both leadership and its products. Zack Investment Research used data released in the last week to help support its move.

Another investment organisation, Roth Capital, also announced it was raising its price objective on shares of USANA Health Services as well. The company moved it from $107 to $126. This investment company also moved the stock to a “buy” rating when it released its notes on Wednesday, February 10th. Roth Capital stated the move was a valuation call.

As of February 11th, the company had a 50 day average price at $81.59. Its 200 day moving average price stood at $78.91. The company hit $4304 in its 52-week low. Its 52-week high stood at $101.50. USANA has a market capitalisation of $2.07 billion.

Who is USANA

USANA is noted for its development and manufacturing of what it calls high-quality nutritional and personal care products. It also offers weight management products. This is spread across three distinct lines of products. The product line is not sold in stores primarily but rather sold in a network marketing system. The company’s product line up is diverse. It aims to be different from the rest of the products in its industry by offering products that they claim are easy for the body to use and offer the nutritional components the body needs to function at its best.

The company says its products can help support health in a variety of ways, including muscle and tissue health, liver and thyroid health, metabolism and energy, as well as cell health and integrity.

Quarterly earnings data release

On February 8th, USANA released its quarterly earnings data. In that data, it reported $1.87 EPS for the quarter. That is higher than analysts expected, who offered estimates of $1.39 by $0.48. The company’s data showed it had a net margin of 10.57 percent as well as a return on equity of 32.91 percent.

During the preceding quarter, USANA reported revenue hit $310.50 million. That is significantly higher than the expected estimates released by analysts earlier of $286.71 million.

A year ago, USANA reported $1.41 EPS. When compared to 2020 data, the company’s revenue was up a significant 14.4 percent.

Most experts have high hopes for the organisation. Some equities analysts are reporting that USANA Health Sciences will see a 5.4 earnings per share rate in the current year.

Company’s repurchase agreement

A day after releasing its company-wide data, USANA released information that its board had initiated a share repurchase program. The plan allows for the company to repurchase as much as $150 million in shares. This move allows the company to buy back as much as 82 percent of its stock. This can be done through open market purchases.

The move to initiate the repurchase offer is seen as a positive one. Often, when companies take this step, they are doing so because they believe the company’s shares are undervalued.

It is also important to note the company has seen significant changes in stakes. Specifically, several hedge funds had made moves to either reduce or add their stakes in USANA. One example is Euclidean Technologies Management LLC. The company lifted its position by 13.7 percent during the final quarter of the year. As of this time, the company owns over 24,970 shares in the company. That is worth an estimated $.1925 million. It purchased over 3000 shares in the previous quarter.

Another example is Duality Advisers LP. That organisation purchased a new stake in USANA, worth $837,000. ProShare Advisors LLC purchased a new stake in the company worth $215,0000. Quantinno Capital Management LP purchased about $291,000 in the fourth quarter, and Royce & Associates LP lifted its position of the company in the fourth quarter by 16.5 percent. It now owes about $328,000.

Institutional investors currently own 54.12 percent of the company’s stock.

What is behind USANA and its product line

As noted, the company develops and manufactures a range of products that it calls “science-based nutritional and personal care products.” This makes up its essentials/CellSentials line. These products are mostly mineral and vitamin supplements. The company’s products aim to offer nutrition for numerous age groups. To do that, it creates optimised supplements that meet the needs of people at various stages of their life. These products  help support skeletal or structural needs, cardiovascular health, digestive needs, or other products.

The USANA CellSentials line of products offers two supplements. This includes the Core Minerals and Vita Antioxidant products. According to the company’s website, these products provide a broad spectrum of vitamins, antioxidants, and minerals, as well as other nutrients the body needs.

These products are backed by a patent – called the USANA InCelligence Technology. The company states its products are designed to provide nutrients to the body more so than what other products do. Specifically, it says these products “activate your body’s natural ability to respond to stress and keep your cells healthy.”

The line of products offers specific formulations for various health goals. Users can choose a product that supports the entire body’s needs. They can also choose those designed to support the eyes, brain, cardiovascular system, bones and joints, or other systems.

CellSentials’s Vita Antioxidant and Core Minerals products are sold in tablets. The company states these products have readily bioavailable forms of the nutrients. It claims this is an essential difference in its products over others because it allows the body to absorb more of the nutrients readily. It states that other products are not as easily absorbed, leading to the risk of lack of functional use of the body.

The company also offers a study, conducted in-house, that found that people using the product stated it was beneficial in optimising  “their mental and physical health, as well as vitality.”

USANA’s company line up of products

USANA Health Sciences, Inc. has a large range of products. These are sold for perceived health benefits. Most products are sold as supplements in tablet form. However, the company also offers a line of meal replacement products. Some of those products include snack bars, shakes, and similar products. The company states its products provide macro-nutrition.

USANA believes that current products on the market do not provide all the nutrients a person’s body needs. It also states that some of those products are not delivered in a manner that is effectively accessible to the body, leading to a lack of function.

The company’s products are designed to meet the needs of men and women who are in generally good health. These people generally eat a balanced diet. This type of product, then, aims to support their overall nutritional support.

USANA Health Sciences states its products are made to high standards. This, it claims, means the products have good completeness of ingredients as well as proper purity and potency. It also claims its products meet safety guidelines and requirements. These products also contain a sunflower based coating on them. This aims to make it easier for a person to swallow the products.

The company distributes its products mostly through a network marketing system. The upbeat news about its earnings as well as its move from a “hold” to a “buy” investment may signal that the company is going in the right direction. Investors believe the company is a solid investment currently, thanks to this data.

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