Sally Beauty (NYSE:SBH) Shares Down 8.9% – Should You Sell?

Shares of Sally Beauty Holdings, Inc. (NYSE:SBH) traded down 8.9% during mid-day trading on Thursday . The stock traded as low as $12.79 and last traded at $12.8930. 150,755 shares were traded during mid-day trading, a decline of 91% from the average session volume of 1,666,251 shares. The stock had previously closed at $14.16.

Wall Street Analysts Forecast Growth

SBH has been the subject of a number of research analyst reports. Morgan Stanley increased their target price on Sally Beauty from $14.00 to $16.00 and gave the company an “underweight” rating in a report on Tuesday, February 10th. Jefferies Financial Group reiterated a “hold” rating and set a $16.00 price target on shares of Sally Beauty in a research report on Wednesday, January 14th. Wall Street Zen raised Sally Beauty from a “hold” rating to a “buy” rating in a research note on Tuesday, March 10th. Weiss Ratings restated a “hold (c+)” rating on shares of Sally Beauty in a report on Friday, January 9th. Finally, Raymond James Financial raised shares of Sally Beauty from a “market perform” rating to an “outperform” rating and set a $19.00 target price on the stock in a research note on Wednesday, January 21st. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $17.80.

Sally Beauty Trading Down 7.7%

The company has a market capitalization of $1.27 billion, a PE ratio of 7.43 and a beta of 1.14. The company has a fifty day simple moving average of $15.20 and a 200-day simple moving average of $15.21. The company has a current ratio of 2.37, a quick ratio of 0.57 and a debt-to-equity ratio of 1.02.

Sally Beauty (NYSE:SBH) last posted its quarterly earnings results on Monday, February 9th. The specialty retailer reported $0.48 EPS for the quarter, topping the consensus estimate of $0.47 by $0.01. The business had revenue of $943.17 million for the quarter, compared to analyst estimates of $939.63 million. Sally Beauty had a return on equity of 26.07% and a net margin of 4.87%.The company’s quarterly revenue was up .6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.43 EPS. 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 predict that Sally Beauty Holdings, Inc. will post 1.81 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SBH. Schroder Investment Management Group purchased a new position in shares of Sally Beauty during the third quarter worth $160,495,000. Wasatch Advisors LP acquired a new position in Sally Beauty during the 3rd quarter worth about $74,842,000. Goldman Sachs Group Inc. lifted its stake in Sally Beauty by 46.0% during the 4th 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 in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Sally Beauty by 2,768.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,220,160 shares of the specialty retailer’s stock valued at $11,299,000 after acquiring an additional 1,177,626 shares during the period. Finally, American Century Companies Inc. grew its position in Sally Beauty by 174.4% in the 3rd 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.

About Sally Beauty

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.