Sally Beauty (NYSE:SBH) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Sally Beauty (NYSE:SBH) from a buy rating to a hold rating in a research report released on Saturday.

SBH has been the topic of several other research reports. Morgan Stanley lifted their price target on Sally Beauty from $14.00 to $16.00 and gave the stock an “underweight” rating in a report on Tuesday, February 10th. TD Cowen raised their price objective on shares of Sally Beauty from $17.00 to $18.00 and gave the stock a “buy” rating in a research report on Wednesday, January 21st. Canaccord Genuity Group boosted their target price on shares of Sally Beauty from $19.00 to $20.00 and gave the company a “buy” rating in a report on Tuesday, February 10th. Zacks Research cut shares of Sally Beauty from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 21st. Finally, Raymond James Financial raised shares of Sally Beauty from a “market perform” rating to an “outperform” rating and set a $19.00 price target on the stock in a research report on Wednesday, January 21st. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $16.58.

Sally Beauty Trading Up 7.2%

SBH opened at $16.32 on Friday. The firm has a market capitalization of $1.58 billion, a price-to-earnings ratio of 9.27 and a beta of 1.16. The company’s 50 day simple moving average is $15.45 and its two-hundred day simple moving average is $14.87. Sally Beauty has a 1-year low of $7.54 and a 1-year high of $17.92. The company has a debt-to-equity ratio of 1.02, a current ratio of 2.37 and a quick ratio of 0.57.

Sally Beauty (NYSE:SBH) last posted its quarterly earnings results on Monday, February 9th. The specialty retailer reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.01. Sally Beauty had a return on equity of 26.07% and a net margin of 4.87%.The business had revenue of $943.17 million during the quarter, compared to analyst estimates of $939.63 million. During the same period in the prior year, the business earned $0.43 earnings per share. The business’s revenue was up .6% compared to the same quarter last year. Sally Beauty has set its FY 2026 guidance at 2.020-2.100 EPS and its Q2 2026 guidance at 0.390-0.420 EPS. Analysts expect that Sally Beauty will post 1.81 EPS for the current fiscal year.

Insider Activity at Sally Beauty

In other Sally Beauty news, CAO Kim Mcintosh sold 5,900 shares of the company’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $15.71, for a total transaction of $92,689.00. Following the transaction, the chief accounting officer directly owned 21,295 shares in the company, valued at $334,544.45. This represents a 21.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Scott C. Sherman sold 15,000 shares of Sally Beauty stock in a transaction on Monday, December 1st. The shares were sold at an average price of $16.27, for a total value of $244,050.00. Following the completion of the sale, the senior vice president directly owned 57,585 shares of the company’s stock, valued at $936,907.95. The trade was a 20.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.00% of the stock is currently owned by company insiders.

Institutional Trading of Sally Beauty

Hedge funds have recently made changes to their positions in the business. Schroder Investment Management Group purchased a new stake in Sally Beauty during the 3rd quarter worth approximately $160,495,000. Wasatch Advisors LP acquired a new position in shares of Sally Beauty in the third quarter worth $74,842,000. Goldman Sachs Group Inc. increased its position in shares of Sally Beauty by 46.0% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,981,998 shares of the specialty retailer’s stock worth $56,783,000 after acquiring an additional 1,254,125 shares during the period. Arrowstreet Capital Limited Partnership increased its position in shares of Sally Beauty by 2,768.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,220,160 shares of the specialty retailer’s stock worth $11,299,000 after acquiring an additional 1,177,626 shares during the period. Finally, American Century Companies Inc. raised its stake in shares of Sally Beauty by 174.4% in the third quarter. American Century Companies Inc. now owns 1,660,831 shares of the specialty retailer’s stock valued at $27,038,000 after acquiring an additional 1,055,669 shares in the last quarter.

Sally Beauty Company Profile

Sally Beauty Holdings, Inc is a leading global specialty retailer and distributor of professional beauty supplies, serving both retail customers and salon professionals. The company operates two primary channels: Sally Beauty Supply, which offers a broad assortment of hair color, hair care, styling, and skincare products; and Beauty Systems Group (BSG), which provides salon-quality products and supplies to professional stylists and salon owners. With a focus on catering to diverse customer needs, Sally Beauty offers well-known brands alongside private label lines, positioning itself as a one-stop source for beauty professionals and enthusiasts alike.

Founded in 1964 and headquartered in Denton, Texas, Sally Beauty has grown through a combination of organic expansion and strategic acquisitions.