Sally Beauty (NYSE:SBH) Shares Gap Down - Should You Sell?

Sally Beauty Holdings, Inc. (NYSE:SBH - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $9.29, but opened at $8.99. Sally Beauty shares last traded at $8.87, with a volume of 135,043 shares.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. StockNews.com upgraded Sally Beauty from a "hold" rating to a "buy" rating in a report on Wednesday, February 19th. DA Davidson reduced their price objective on Sally Beauty from $13.00 to $10.50 and set a "neutral" rating on the stock in a research report on Tuesday, February 18th. Finally, Morgan Stanley lowered their price objective on Sally Beauty from $12.00 to $10.00 and set an "underweight" rating on the stock in a research note on Tuesday, January 21st. One analyst has rated the stock with a sell rating, two have given a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $12.70.

Sally Beauty Stock Down 4.7%

The firm's fifty day simple moving average is $8.53 and its two-hundred day simple moving average is $10.32. The company has a current ratio of 2.27, a quick ratio of 0.44 and a debt-to-equity ratio of 1.43. The company has a market capitalization of $893.42 million, a price-to-earnings ratio of 5.30 and a beta of 1.33.

Sally Beauty (NYSE:SBH - Get Free Report) last released its quarterly earnings results on Monday, May 12th. The specialty retailer reported $0.42 EPS for the quarter, beating the consensus estimate of $0.39 by $0.03. The firm had revenue of $883.15 million for the quarter, compared to analyst estimates of $901.00 million. Sally Beauty had a net margin of 4.73% and a return on equity of 30.35%. The business's revenue for the quarter was down 2.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.35 EPS. Sell-side analysts anticipate that Sally Beauty Holdings, Inc. will post 1.81 EPS for the current year.

Hedge Funds Weigh In On Sally Beauty

A number of hedge funds have recently modified their holdings of SBH. Golden State Wealth Management LLC raised its holdings in Sally Beauty by 100.0% in the 1st quarter. Golden State Wealth Management LLC now owns 3,470 shares of the specialty retailer's stock valued at $31,000 after buying an additional 1,735 shares during the period. Parallel Advisors LLC increased its position in shares of Sally Beauty by 536.4% during the first quarter. Parallel Advisors LLC now owns 3,920 shares of the specialty retailer's stock valued at $35,000 after acquiring an additional 3,304 shares during the last quarter. Federated Hermes Inc. raised its stake in shares of Sally Beauty by 119.1% in the 4th quarter. Federated Hermes Inc. now owns 3,702 shares of the specialty retailer's stock valued at $39,000 after acquiring an additional 2,012 shares during the period. GAMMA Investing LLC lifted its holdings in shares of Sally Beauty by 820.3% in the 1st quarter. GAMMA Investing LLC now owns 4,712 shares of the specialty retailer's stock worth $43,000 after acquiring an additional 4,200 shares during the last quarter. Finally, R Squared Ltd purchased a new position in shares of Sally Beauty during the 4th quarter worth approximately $56,000.

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.

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