Sally Beauty (NYSE:SBH) Shares Gap Up – Here’s Why

Sally Beauty Holdings, Inc. (NYSE:SBH)’s share price gapped up prior to trading on Monday . The stock had previously closed at $12.97, but opened at $13.69. Sally Beauty shares last traded at $13.90, with a volume of 386,848 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. DA Davidson raised their target price on Sally Beauty from $12.00 to $13.00 and gave the company a “neutral” rating in a research report on Friday, November 15th. Raymond James upgraded Sally Beauty from an “underperform” rating to a “market perform” rating in a research report on Friday, November 15th. TD Cowen upgraded Sally Beauty from a “hold” rating to a “buy” rating and increased their target price for the company from $14.00 to $16.00 in a research report on Monday. StockNews.com raised shares of Sally Beauty from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Morgan Stanley increased their price objective on shares of Sally Beauty from $8.00 to $12.00 and gave the company an “underweight” rating in a report on Friday, November 15th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat, Sally Beauty has an average rating of “Hold” and a consensus price target of $13.50.

Sally Beauty Price Performance

The company has a 50-day moving average of $13.07 and a 200 day moving average of $11.99. The company has a quick ratio of 0.45, a current ratio of 2.20 and a debt-to-equity ratio of 1.56. The stock has a market capitalization of $1.45 billion, a PE ratio of 9.88 and a beta of 1.53.

Sally Beauty (NYSE:SBH) last posted its quarterly earnings results on Thursday, November 14th. The specialty retailer reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.02. Sally Beauty had a net margin of 4.13% and a return on equity of 31.37%. The firm had revenue of $935.00 million for the quarter, compared to the consensus estimate of $935.88 million. During the same period last year, the firm posted $0.42 earnings per share. The company’s revenue for the quarter was up 1.5% on a year-over-year basis. Sell-side analysts predict that Sally Beauty Holdings, Inc. will post 1.84 EPS for the current year.

Insiders Place Their Bets

In related news, CAO Kim Mcintosh sold 4,300 shares of the firm’s stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $14.53, for a total transaction of $62,479.00. Following the completion of the sale, the chief accounting officer now directly owns 16,685 shares of the company’s stock, valued at approximately $242,433.05. This trade represents a 20.49 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Scott C. Sherman sold 13,500 shares of the company’s stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $14.49, for a total transaction of $195,615.00. Following the completion of the transaction, the insider now directly owns 42,431 shares in the company, valued at $614,825.19. The trade was a 24.14 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.36% of the company’s stock.

Institutional Investors Weigh In On Sally Beauty

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Quarry LP increased its holdings in Sally Beauty by 369.3% in the 3rd quarter. Quarry LP now owns 2,980 shares of the specialty retailer’s stock valued at $40,000 after purchasing an additional 2,345 shares during the last quarter. DekaBank Deutsche Girozentrale acquired a new stake in shares of Sally Beauty in the first quarter valued at $64,000. Point72 DIFC Ltd purchased a new stake in shares of Sally Beauty in the 3rd quarter valued at $64,000. Quest Partners LLC lifted its stake in Sally Beauty by 16,095.6% during the 2nd quarter. Quest Partners LLC now owns 7,288 shares of the specialty retailer’s stock worth $78,000 after acquiring an additional 7,243 shares in the last quarter. Finally, nVerses Capital LLC purchased a new position in Sally Beauty during the 3rd quarter valued at about $94,000.

Sally Beauty Company Profile

Sally Beauty Holdings, Inc operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals.