Sally Beauty (NYSE:SBH) Shares Down 7.4% – Here’s Why

Sally Beauty Holdings, Inc. (NYSE:SBH)’s stock price fell 7.4% during trading on Wednesday. The stock traded as low as $19.30 and last traded at $19.01. Approximately 146,615 shares changed hands during trading, a decline of 90% from the average session volume of 1,500,961 shares. The stock had previously closed at $20.54.

Key Headlines Impacting Sally Beauty

These are some of the SBH headlines that stood out recently:

• Positive Sentiment: Fiscal Q4 earnings were $0.62 per share, topping the $0.60 consensus, while revenue edged up 0.6% to about $953 million. Reports cited sales growth, cost controls, and improved margins as supports for profitability. Sally Beauty Q4 Earnings Beat Estimates on Sales Growth & Cost Control
• Positive Sentiment: Canaccord Genuity raised its price target to $25 from $20 and maintained a Buy rating, signaling continued analyst confidence. Canaccord Genuity Group recommendations
• Positive Sentiment: Longer-term growth indicators included 10% full-year e-commerce sales growth and expansion of the Sally Ignited concept to 80 stores. Sally Beauty: 3 Key Takeaways for Long-Term Investors

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on SBH. Jefferies Financial Group set a $21.00 price objective on shares of Sally Beauty and gave the stock a “hold” rating in a research report on Wednesday. Raymond James Financial set a $18.00 price objective on shares of Sally Beauty and gave the stock an “outperform” rating in a report on Tuesday. Morgan Stanley raised their target price on Sally Beauty from $13.00 to $19.00 and gave the company an “underweight” rating in a report on Wednesday. Weiss Ratings downgraded Sally Beauty from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 30th. Finally, TD Cowen began coverage on shares of Sally Beauty in a report on Friday, October 30th. They set a “strong-buy” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $20.40.

Sally Beauty Stock Down 4.1%

The company has a debt-to-equity ratio of 0.88, a current ratio of 2.37 and a quick ratio of 0.57. The stock has a market capitalization of $1.67 billion, a P/E ratio of 9.08 and a beta of 1.09. The stock has a fifty day moving average price of $16.97 and a 200 day moving average price of $15.22.

Sally Beauty (NYSE:SBH) last announced its quarterly earnings results on Tuesday, November 10th. The specialty retailer reported $0.62 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.02. The firm had revenue of $952.53 million for the quarter, compared to analysts’ expectations of $950.12 million. Sally Beauty had a return on equity of 24.07% and a net margin of 5.36%. The company’s revenue was up .6% on a year-over-year basis. During the same period in the prior year, the business posted $0.55 earnings per share. Sally Beauty has set its Q1 2027 guidance at 0.480-0.520 EPS and its FY 2027 guidance at 2.200-2.300 EPS. On average, research analysts forecast that Sally Beauty Holdings, Inc. will post 2.24 earnings per share for the current year.

Insiders Place Their Bets

In other Sally Beauty news, SVP John Howard Goss, Jr. sold 50,000 shares of the firm’s stock in a transaction dated Tuesday, November 10th. The stock was sold at an average price of $20.00, for a total value of $1,000,000.00. Following the sale, the senior vice president owned 65,484 shares of the company’s stock, valued at $1,309,680. This trade represents a 43.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 2.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Nykredit A S purchased a new position in Sally Beauty in the 2nd quarter worth $28,000. Fortitude Family Office LLC raised its holdings in shares of Sally Beauty by 508.1% during the third quarter. Fortitude Family Office LLC now owns 1,727 shares of the specialty retailer’s stock valued at $28,000 after acquiring an additional 1,443 shares in the last quarter. Global Retirement Partners LLC lifted its position in shares of Sally Beauty by 1,791.2% in the 3rd quarter. Global Retirement Partners LLC now owns 1,721 shares of the specialty retailer’s stock worth $28,000 after purchasing an additional 1,630 shares during the period. KBC Group NV bought a new stake in Sally Beauty during the 1st quarter valued at approximately $39,000. Finally, Simplex Trading LLC grew its stake in Sally Beauty by 354.0% in the third quarter. Simplex Trading LLC now owns 3,497 shares of the specialty retailer’s stock worth $57,000 after purchasing an additional 4,874 shares during the period.

About Sally Beauty

Sally Beauty Holdings, Inc. is a specialty retailer and distributor of professional beauty products. It serves both individual consumers and salon professionals through retail stores, online channels and professional distribution. The company operates Sally Beauty, which sells products such as hair color and care items, styling tools, nail products and skincare. Its CosmoProf business supplies salons and other beauty professionals with products, equipment and related educational resources. Sally Beauty traces its roots to a beauty supply store opened in New Orleans in 1964.