Sally Beauty (NYSE:SBH) Trading Down 5.4% - What's Next?

Key Points

• Sally Beauty's stock price declined by 5.4% to $14.94, following a trading volume that was 16% lower than its average daily volume.
• Analysts show mixed opinions on Sally Beauty, with ratings ranging from "Strong Buy" to "Sell," and an average target price of $13.88, indicating uncertainty in the stock's future performance.
• Insider trading activity includes recent purchases by Director Diana Sue Ferguson and CEO Denise Paulonis, suggesting confidence in the company despite the stock's decline.

Sally Beauty Holdings, Inc. (NYSE:SBH - Get Free Report) shares dropped 5.4% during trading on Tuesday . The stock traded as low as $14.82 and last traded at $14.94. Approximately 1,814,305 shares were traded during mid-day trading, a decline of 16% from the average daily volume of 2,149,894 shares. The stock had previously closed at $15.79.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on SBH shares. Wall Street Zen upgraded Sally Beauty from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. Zacks Research raised shares of Sally Beauty from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 5th. Canaccord Genuity Group increased their price target on shares of Sally Beauty from $15.00 to $19.00 and gave the company a "buy" rating in a research report on Monday, September 15th. TD Cowen raised their target price on Sally Beauty from $13.00 to $16.00 and gave the stock a "buy" rating in a research report on Thursday, September 4th. Finally, Cowen restated a "buy" rating on shares of Sally Beauty in a research note on Thursday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $13.88.

Sally Beauty Trading Down 0.3%

The stock has a 50-day moving average of $12.57 and a two-hundred day moving average of $10.12. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.49 and a current ratio of 2.41. The company has a market cap of $1.53 billion, a P/E ratio of 8.34 and a beta of 1.38.

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 for the quarter, beating the consensus estimate of $0.42 by $0.09. Sally Beauty had a net margin of 5.26% and a return on equity of 28.11%. The company had revenue of $933.31 million during the quarter, compared to the consensus estimate of $928.78 million. During the same quarter last year, the firm earned $0.45 earnings per share. The firm's quarterly revenue was down 1.0% compared to the same quarter last year. Sally Beauty has set its FY 2025 guidance at EPS. On average, equities research analysts predict that Sally Beauty Holdings, Inc. will post 1.81 earnings per share for the current year.

Insider Transactions at Sally Beauty

In other news, Director Max R. Rangel acquired 3,500 shares of the firm's stock in a transaction dated Thursday, September 4th. The shares were acquired at an average cost of $14.07 per share, with a total value of $49,245.00. Following the acquisition, the director directly owned 3,500 shares of the company's stock, valued at approximately $49,245. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Denise Paulonis purchased 4,500 shares of the business's stock in a transaction that occurred on Friday, August 8th. The shares were purchased at an average price of $11.74 per share, for a total transaction of $52,830.00. Following the completion of the acquisition, the chief executive officer directly owned 366,865 shares in the company, valued at $4,306,995.10. The trade was a 1.24% increase in their position. The disclosure for this purchase can be found here. Insiders purchased 10,500 shares of company stock worth $132,125 in the last three months. Corporate insiders own 1.56% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Diversified Trust Co lifted its position in shares of Sally Beauty by 4.0% during the 2nd quarter. Diversified Trust Co now owns 28,756 shares of the specialty retailer's stock valued at $266,000 after buying an additional 1,093 shares in the last quarter. SummerHaven Investment Management LLC boosted its holdings in shares of Sally Beauty by 1.9% during the 1st quarter. SummerHaven Investment Management LLC now owns 72,690 shares of the specialty retailer's stock worth $656,000 after purchasing an additional 1,323 shares during the last quarter. Rafferty Asset Management LLC grew its holdings in Sally Beauty by 4.1% in the 1st quarter. Rafferty Asset Management LLC now owns 33,979 shares of the specialty retailer's stock valued at $307,000 after buying an additional 1,350 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its holdings in shares of Sally Beauty by 6.2% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 25,904 shares of the specialty retailer's stock valued at $240,000 after purchasing an additional 1,506 shares during the period. Finally, Golden State Wealth Management LLC increased its holdings 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 buying an additional 1,735 shares during the last quarter.

Sally Beauty Company Profile

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.