Sally Beauty (NYSE:SBH) Stock Price Expected to Rise, TD Cowen Analyst Says

Key Points

• TD Cowen raised Sally Beauty’s price target from $19 to $22 and maintained a Buy rating, implying 16.35% upside from the prior close. Analyst views are mixed overall: MarketBeat reports an average Hold rating and a $21 average target.
• Sally Beauty’s latest quarter beat estimates, reporting EPS of $0.62 versus $0.60 expected and revenue of $952.5 million versus $950.1 million expected; revenue rose 0.6% year over year.
• Shares opened at $18.91 and were up 2.7%. Senior VP John Howard Goss Jr. sold 50,000 shares at an average price of $20, reducing his position by 43.3%.

Sally Beauty (NYSE:SBH - Get Free Report) had its price target hoisted by research analysts at TD Cowen from $19.00 to $22.00 in a report issued on Friday, Benzinga reports. The firm presently has a "buy" rating on the specialty retailer's stock. TD Cowen's target price points to a potential upside of 16.35% from the company's previous close.

A number of other equities analysts have also recently issued reports on SBH. Canaccord Genuity Group raised their target price on shares of Sally Beauty from $20.00 to $25.00 and gave the stock a "buy" rating in a report on Wednesday. Morgan Stanley lifted their target price on Sally Beauty from $13.00 to $19.00 and gave the company an "underweight" rating in a research note on Wednesday. Raymond James Financial set a $18.00 target price on Sally Beauty and gave the company an "outperform" rating in a report on Tuesday. Weiss Ratings cut Sally Beauty from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, October 30th. Finally, Wall Street Zen cut Sally Beauty from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $21.00.

Sally Beauty Stock Up 2.7%

Shares of NYSE:SBH opened at $18.91 on Friday. The stock has a market capitalization of $1.72 billion, a price-to-earnings ratio of 9.31 and a beta of 1.09. Sally Beauty has a 1-year low of $11.54 and a 1-year high of $21.06. The company's fifty day moving average is $16.97 and its two-hundred day moving average is $15.22. The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.57 and a current ratio of 2.37.

Sally Beauty (NYSE:SBH - Get Free Report) last posted its quarterly earnings results on Tuesday, November 10th. The specialty retailer reported $0.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.60 by $0.02. Sally Beauty had a net margin of 5.36% and a return on equity of 24.07%. The company had revenue of $952.53 million for the quarter, compared to the consensus estimate of $950.12 million. During the same period last year, the firm posted $0.55 EPS. The company's revenue for the quarter was up .6% on a year-over-year basis. 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. Equities analysts anticipate that Sally Beauty will post 2.24 EPS for the current year.

Insider Transactions at Sally Beauty

In related news, SVP John Howard Goss, Jr. sold 50,000 shares of the firm's stock in a transaction that occurred on 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 directly owned 65,484 shares in the company, 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 Securities & Exchange Commission, which is available through this hyperlink. 2.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Sally Beauty during the second quarter valued at $223,172,000. Dimensional Fund Advisors LP lifted its holdings in Sally Beauty by 3.6% in the first quarter. Dimensional Fund Advisors LP now owns 5,871,979 shares of the specialty retailer's stock worth $81,323,000 after purchasing an additional 202,020 shares during the period. Public Sector Pension Investment Board lifted its holdings in Sally Beauty by 19.6% in the third quarter. Public Sector Pension Investment Board now owns 680,062 shares of the specialty retailer's stock worth $10,854,000 after purchasing an additional 111,464 shares during the period. Access Investment Management LLC grew its position in Sally Beauty by 1.3% in the 3rd quarter. Access Investment Management LLC now owns 574,104 shares of the specialty retailer's stock valued at $9,427,000 after buying an additional 7,380 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in Sally Beauty in the 2nd quarter valued at about $9,347,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.