Sally Beauty (NYSE:SBH) Stock Rating Upgraded by Wall Street Zen

Key Points

• Sally Beauty was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating, with several other analysts also issuing positive ratings and increasing price targets for the stock.
• The company's recent earnings report revealed an earnings per share (EPS) of $0.51, surpassing analysts' expectations of $0.42, despite a 1% decline in revenue year-over-year.
• Insider trading activity shows confidence in the company, with key executives purchasing shares, and institutional investor interest has spiked significantly, indicating a bullish outlook for Sally Beauty.

Wall Street Zen upgraded shares of Sally Beauty (NYSE:SBH - Free Report) from a hold rating to a buy rating in a report published on Saturday morning.

A number of other brokerages also recently issued reports on SBH. TD Cowen raised their price target on shares of Sally Beauty from $13.00 to $16.00 and gave the stock a "buy" rating in a report on Thursday, September 4th. Zacks Research upgraded shares of Sally Beauty from a "hold" rating to a "strong-buy" rating in a report on Friday, September 5th. Cowen reiterated a "buy" rating on shares of Sally Beauty in a report on Thursday, September 4th. Finally, Canaccord Genuity Group lifted their target price on shares of Sally Beauty from $14.00 to $15.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $13.88.

Sally Beauty Trading Up 1.7%

Shares of NYSE SBH traded up $0.26 during midday trading on Friday, reaching $15.56. 2,071,949 shares of the stock were exchanged, compared to its average volume of 2,423,481. The company has a 50 day simple moving average of $12.45 and a 200 day simple moving average of $10.06. The stock has a market capitalization of $1.54 billion, a P/E ratio of 8.37 and a beta of 1.38. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.49 and a current ratio of 2.41. Sally Beauty has a twelve month low of $7.54 and a twelve month high of $15.92.

Sally Beauty (NYSE:SBH - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The specialty retailer reported $0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.42 by $0.09. The business had revenue of $933.31 million during the quarter, compared to the consensus estimate of $928.78 million. Sally Beauty had a net margin of 5.26% and a return on equity of 28.11%. The business's revenue was down 1.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.45 EPS. Sally Beauty has set its FY 2025 guidance at EPS. As a group, equities analysts expect that Sally Beauty will post 1.81 earnings per share for the current year.

Insiders Place Their Bets

In other Sally Beauty news, Director Diana Sue Ferguson purchased 2,500 shares of the company's stock in a transaction on Thursday, August 7th. The stock was acquired at an average price of $12.02 per share, for a total transaction of $30,050.00. Following the completion of the purchase, the director directly owned 7,912 shares in the company, valued at approximately $95,102.24. The trade was a 46.19% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Max R. Rangel purchased 3,500 shares of the company's stock in a transaction on Thursday, September 4th. The stock was acquired at an average price of $14.07 per share, with a total value of $49,245.00. Following the purchase, the director owned 3,500 shares of the company's stock, valued at approximately $49,245. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired a total of 10,500 shares of company stock worth $132,125 over the last 90 days. Corporate insiders own 1.56% of the company's stock.

Hedge Funds Weigh In On Sally Beauty

Several institutional investors have recently modified their holdings of SBH. Osaic Holdings Inc. grew its stake in shares of Sally Beauty by 1,365.0% in the second quarter. Osaic Holdings Inc. now owns 2,930 shares of the specialty retailer's stock worth $27,000 after acquiring an additional 2,730 shares in the last quarter. Golden State Wealth Management LLC lifted its position in shares of Sally Beauty by 100.0% during the 1st quarter. Golden State Wealth Management LLC now owns 3,470 shares of the specialty retailer's stock worth $31,000 after purchasing an additional 1,735 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Sally Beauty during the 2nd quarter worth $34,000. Parallel Advisors LLC lifted its position in shares of Sally Beauty by 536.4% during the 1st quarter. Parallel Advisors LLC now owns 3,920 shares of the specialty retailer's stock worth $35,000 after purchasing an additional 3,304 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of Sally Beauty by 820.3% during the 1st quarter. GAMMA Investing LLC now owns 4,712 shares of the specialty retailer's stock worth $43,000 after purchasing an additional 4,200 shares during the last quarter.

About Sally Beauty

Sally Beauty Holdings, Inc operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals.