Natural Health Trends Stock Falls Below 50-Day Average Amid Analyst Downgrades

Natural Health Trends Corp. (NASDAQ:NHTC) experienced a significant decline in its stock price on Friday, crossing below its 50-day moving average during trading hours. The stock, which had a 50-day moving average of $3.55, dipped to a low of $3.17 before closing at $3.28. The trading volume for the day reached 24,891 shares.

Analysts have expressed concern regarding the company’s performance. On October 8, Weiss Ratings reiterated a “sell (d+)” rating for Natural Health Trends, indicating a lack of confidence in the stock’s potential. Currently, data from MarketBeat.com shows that the average rating for the stock remains at “Sell,” with one equities research analyst sharing this negative outlook.

Recent Earnings and Dividend Announcement

Natural Health Trends reported its quarterly earnings results on November 5, 2023, revealing a loss of ($0.04) earnings per share (EPS) for the quarter. The company suffered a negative return on equity of 0.40% and a negative net margin of 0.29%. Revenue for the quarter was reported at $9.48 million.

In a bid to provide some returns to shareholders, the company announced a quarterly dividend of $0.20 per share. This dividend was paid on November 28, 2023, to stockholders of record as of November 18, 2023. The ex-dividend date was also set for November 18, 2023. This translates to an annualized dividend of $0.80, yielding 24.4%. Notably, the dividend payout ratio is currently at -8,000.00%, reflecting the company’s ongoing financial challenges.

Institutional Investment Activity

Recent trading activity indicates that several institutional investors have adjusted their positions in Natural Health Trends. Notably, CIBC Bancorp USA Inc. acquired a new stake valued at $718,000 during the third quarter. Additionally, Bridgeway Capital Management LLC purchased a new stake during the same period, valued at approximately $101,000.

Furthermore, Osaic Holdings Inc. made a significant move by increasing its stake in Natural Health Trends by an astonishing 536,392.2% in the second quarter. Osaic now holds 413,099 shares, valued at around $1.79 million, after acquiring an additional 413,022 shares.

Currently, institutional investors and hedge funds own 10.13% of Natural Health Trends’ stock, indicating a cautious approach to the company’s future.

Natural Health Trends Corp. operates as a U.S.-based holding company focused on developing, marketing, and distributing a variety of plant-based health supplements, nutritional products, and personal care items. The company’s product portfolio includes offerings in weight management, skin care, men’s health, and wellness solutions, all designed to promote overall health and beauty. With principal subsidiaries located in the People’s Republic of China, including Shanghai NHTC Health Products Co., Ltd., the company leverages modern e-commerce channels and direct selling platforms to reach its market.

As investors watch the developments surrounding Natural Health Trends, the company continues to face challenges in its stock performance and overall financial health.