Sally Beauty (NYSE:SBH) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Sally Beauty to “Hold” from “Buy.” The broader analyst consensus is also “Hold,” with three Buy, three Hold, and one Sell rating and an average price target of $17.40.
• Sally Beauty shares opened at $16.80, up 4.2%, with a 12-month trading range of $11.54 to $17.92. The company recently reported quarterly EPS of $0.55, beating estimates by $0.02, while revenue of $935.49 million slightly missed expectations.
• CFO Marlo Michelle Cormier Platz sold 42,771 shares for approximately $543,192, reducing her direct ownership by 23.64%; corporate insiders own about 2% of the company.

Sally Beauty (NYSE:SBH - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Several other brokerages also recently weighed in on SBH. Morgan Stanley lowered their price target on shares of Sally Beauty from $16.00 to $13.00 and set an "underweight" rating on the stock in a report on Tuesday, May 12th. Weiss Ratings raised shares of Sally Beauty from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, July 28th. Finally, TD Cowen raised their price objective on shares of Sally Beauty from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Tuesday. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Sally Beauty presently has an average rating of "Hold" and a consensus target price of $17.40.

Sally Beauty Stock Up 4.2%

Shares of SBH stock opened at $16.80 on Friday. Sally Beauty has a 12 month low of $11.54 and a 12 month high of $17.92. The stock has a market cap of $1.57 billion, a P/E ratio of 8.75 and a beta of 1.03. The company has a current ratio of 2.37, a quick ratio of 0.55 and a debt-to-equity ratio of 0.92. The company has a 50 day simple moving average of $14.28 and a two-hundred day simple moving average of $14.42.

Sally Beauty (NYSE:SBH - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The specialty retailer reported $0.55 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.02. The business had revenue of $935.49 million for the quarter, compared to analysts' expectations of $938.45 million. Sally Beauty had a net margin of 5.16% and a return on equity of 24.36%. The company's revenue was up .3% compared to the same quarter last year. During the same quarter last year, the company posted $0.51 EPS. Sally Beauty has set its FY 2026 guidance at 2.040-2.080 EPS. On average, research analysts expect that Sally Beauty will post 2.07 earnings per share for the current year.

Insider Buying and Selling at Sally Beauty

In related news, CFO Marlo Michelle Cormier Platz sold 42,771 shares of the firm's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $12.70, for a total transaction of $543,191.70. Following the completion of the transaction, the chief financial officer directly owned 138,145 shares of the company's stock, valued at approximately $1,754,441.50. This trade represents a 23.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SBH. Osaic Holdings Inc. increased its holdings 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 purchasing an additional 2,730 shares during the last quarter. Larson Financial Group LLC boosted its stake in Sally Beauty by 392.5% during the third quarter. Larson Financial Group LLC now owns 1,906 shares of the specialty retailer's stock valued at $31,000 after buying an additional 1,519 shares during the last quarter. Raymond James Financial Inc. bought a new position in Sally Beauty during the second quarter valued at approximately $34,000. iSAM Funds UK Ltd bought a new position in Sally Beauty during the third quarter valued at approximately $35,000. Finally, Intesa Sanpaolo Wealth Management purchased a new position in Sally Beauty during the 4th quarter valued at approximately $36,000.

Sally Beauty Company Profile

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.

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