Sally Beauty (NYSE:SBH) Hits New 12-Month High - What's Next?

Key Points

• Sally Beauty Holdings reached a new 52-week high, trading at $14.94 with increased trading volume, reflecting growing investor interest.
• Brokerages have mixed ratings for Sally Beauty, with one Strong Buy, three Buy, and two Hold ratings, while the average target price is set at $12.88.
• Institutional investors have significantly increased their stakes in the company, with some players boosting their positions by over 1,300% during the last quarter.

Sally Beauty Holdings, Inc. (NYSE:SBH - Get Free Report) reached a new 52-week high during trading on Thursday . The stock traded as high as $14.97 and last traded at $14.94, with a volume of 184115 shares trading hands. The stock had previously closed at $14.63.

Analysts Set New Price Targets

Several research analysts have weighed in on SBH shares. Wall Street Zen upgraded Sally Beauty from a "hold" rating to a "buy" rating in a report on Saturday. Cowen reissued a "buy" rating on shares of Sally Beauty in a research report on Thursday, September 4th. Zacks Research raised Sally Beauty from a "hold" rating to a "strong-buy" rating in a report on Friday, September 5th. TD Cowen lifted their target price on Sally Beauty from $13.00 to $16.00 and gave the stock a "buy" rating in a report on Thursday, September 4th. Finally, Canaccord Genuity Group boosted their price objective on Sally Beauty from $15.00 to $19.00 and gave the stock a "buy" rating in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Sally Beauty presently has an average rating of "Moderate Buy" and an average price target of $13.88.

Sally Beauty Stock Down 4.6%

The company has a debt-to-equity ratio of 1.16, a current ratio of 2.41 and a quick ratio of 0.49. The company has a market cap of $1.49 billion, a P/E ratio of 8.10 and a beta of 1.38. The company's 50-day moving average is $12.13 and its two-hundred day moving average is $9.94.

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

Insider Buying and Selling

In related news, Director Diana Sue Ferguson purchased 2,500 shares of Sally Beauty stock in a transaction dated Thursday, August 7th. The shares were acquired at an average cost of $12.02 per share, with a total value of $30,050.00. Following the purchase, the director owned 7,912 shares of the company's stock, valued at approximately $95,102.24. The trade was a 46.19% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Max R. Rangel bought 3,500 shares of the business's stock in a transaction that occurred on Thursday, September 4th. The shares were acquired at an average cost of $14.07 per share, for a total transaction of $49,245.00. Following the completion of the purchase, the director owned 3,500 shares in the company, valued at $49,245. This trade 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 valued at $132,125 over the last 90 days. Insiders own 1.56% of the company's stock.

Hedge Funds Weigh In On Sally Beauty

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in Sally Beauty by 4.4% in the first quarter. Vanguard Group Inc. now owns 12,974,982 shares of the specialty retailer's stock valued at $117,164,000 after purchasing an additional 546,267 shares during the period. Victory Capital Management Inc. grew its position in shares of Sally Beauty by 9.3% during the first quarter. Victory Capital Management Inc. now owns 4,013,531 shares of the specialty retailer's stock worth $36,242,000 after acquiring an additional 342,225 shares during the last quarter. LSV Asset Management lifted its holdings in Sally Beauty by 1.3% in the second quarter. LSV Asset Management now owns 3,125,321 shares of the specialty retailer's stock worth $28,940,000 after purchasing an additional 40,189 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in Sally Beauty by 10.1% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,868,855 shares of the specialty retailer's stock valued at $25,906,000 after acquiring an additional 263,269 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Sally Beauty by 1.4% during the second quarter. Geode Capital Management LLC now owns 2,555,955 shares of the specialty retailer's stock valued at $23,671,000 after buying an additional 34,328 shares in 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.