Sally Beauty (NYSE:SBH) Stock Price Down 7.4% - Should You Sell?

Key Points

• Sally Beauty shares fell 7.4% to $19.01 in mid-day trading, on volume reported 90% below its average.
• The company beat quarterly estimates, posting EPS of $0.62 versus $0.60 expected and revenue of $952.53 million versus $950.12 million. FY2027 EPS guidance of $2.20–$2.30 slightly exceeds the $2.24 analyst consensus, though Q1 guidance’s EPS midpoint is below consensus.
• Analyst views are mixed: the consensus rating is “Moderate Buy,” with an average price target of $18.20, while Morgan Stanley maintained an Underweight rating despite raising its target to $19.

Shares of Sally Beauty Holdings, Inc. (NYSE:SBH - Get Free Report) were down 7.4% during mid-day trading on Wednesday. The stock traded as low as $19.30 and last traded at $19.01. 146,615 shares were traded during mid-day trading, a decline of 90% from the average daily volume of 1,500,961 shares. The stock had previously closed at $20.54.

Key Stories Impacting Sally Beauty

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

• Positive Sentiment: Management’s FY2027 EPS outlook of $2.20–$2.30 per share has a $2.25 midpoint, slightly above the $2.24 analyst consensus. The company also reported 10% full-year e-commerce sales growth and expansion of its Sally Ignited format to 80 stores. Sally Beauty: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Fiscal Q1 2027 EPS guidance of $0.48–$0.52 has a midpoint below the $0.52 consensus, while revenue guidance of $945 million–$955 million brackets the $948.3 million estimate. Sally Beauty Holdings Sees Slight Growth In FY27
• Negative Sentiment: Morgan Stanley raised its price target to $19 from $13 but kept its Underweight rating, signaling continued skepticism about the shares despite the higher target. Morgan Stanley Adjusts Price Target on Sally Beauty

Analyst Upgrades and Downgrades

SBH has been the topic of a number of recent analyst reports. Jefferies Financial Group set a $21.00 price target on Sally Beauty and gave the stock a "hold" rating in a report on Wednesday. Wall Street Zen downgraded Sally Beauty from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Raymond James Financial set a $18.00 target price on Sally Beauty and gave the company an "outperform" rating in a research report on Tuesday. Weiss Ratings downgraded shares of Sally Beauty from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, October 30th. Finally, TD Cowen started coverage on shares of Sally Beauty in a research report on Friday, October 30th. They set a "strong-buy" rating for the company. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Sally Beauty currently has a consensus rating of "Moderate Buy" and an average target price of $18.20.

Sally Beauty Stock Performance

The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.57 and a current ratio of 2.37. The company has a market capitalization of $1.81 billion, a P/E ratio of 10.06 and a beta of 1.09. The business has a 50 day moving average of $16.88 and a 200-day moving average of $15.18.

Sally Beauty (NYSE:SBH - Get Free Report) last issued its earnings results on Tuesday, November 10th. The specialty retailer reported $0.62 EPS for the quarter, topping the consensus estimate of $0.60 by $0.02. Sally Beauty had a return on equity of 24.36% and a net margin of 5.16%. The business had revenue of $952.53 million during the quarter, compared to the consensus estimate of $950.12 million. During the same quarter last year, the company earned $0.55 EPS. The firm's revenue was up .6% compared to the same quarter last year. 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, sell-side analysts predict that Sally Beauty Holdings, Inc. will post 2.07 EPS for the current fiscal year.

Hedge Funds Weigh In On Sally Beauty

Several hedge funds have recently bought and sold shares of SBH. The Manufacturers Life Insurance Company bought a new position in Sally Beauty in the 2nd quarter valued at $562,000. SummerHaven Investment Management LLC purchased a new position in shares of Sally Beauty during the 3rd quarter valued at $1,172,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Sally Beauty during the 2nd quarter valued at $1,727,000. Bank of America Corp DE bought a new position in shares of Sally Beauty in the second quarter worth $2,115,000. Finally, Hsbc Holdings PLC bought a new position in shares of Sally Beauty in the first quarter worth $2,587,000.

Sally Beauty Company Profile

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.

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