Sally Beauty (NYSE:SBH) Trading Up 12.7% After Strong Earnings

Key Points

• Sally Beauty shares jumped 12.7% after the specialty retailer reported quarterly EPS of $0.55, exceeding analyst expectations of $0.53. Revenue increased 0.3% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $17.00; ratings include three Buys, three Holds, and one Sell.
• CFO Marlo Michelle Cormier Platz sold 42,771 shares for approximately $543,000, reducing her ownership by 23.64%; insiders currently own about 2% of the company.

Sally Beauty Holdings, Inc. (NYSE:SBH - Get Free Report)'s share price rose 12.7% during trading on Monday after the company announced better than expected quarterly earnings. The company traded as high as $16.69 and last traded at $16.8740. Approximately 250,469 shares were traded during trading, a decline of 84% from the average session volume of 1,555,646 shares. The stock had previously closed at $14.97.

The specialty retailer reported $0.55 EPS for the quarter, topping the consensus estimate of $0.53 by $0.02. Sally Beauty had a return on equity of 24.95% and a net margin of 4.93%.Sally Beauty's quarterly revenue was up .3% compared to the same quarter last year. During the same quarter last year, the business posted $0.51 EPS.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on SBH shares. Weiss Ratings raised Sally Beauty from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, July 28th. Morgan Stanley dropped their target price on shares of Sally Beauty from $16.00 to $13.00 and set an "underweight" rating for the company in a report on Tuesday, May 12th. Wall Street Zen upgraded shares of Sally Beauty from a "hold" rating to a "buy" rating in a research report on Saturday, June 13th. Finally, TD Cowen reduced their price target on shares of Sally Beauty from $20.00 to $17.00 and set a "buy" rating on the stock in a report on Tuesday, May 12th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $17.00.

Insider Buying and Selling at Sally Beauty

In other news, CFO Marlo Michelle Cormier Platz sold 42,771 shares of the business's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $12.70, for a total value 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 $1,754,441.50. The trade was a 23.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 2.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sally Beauty

Institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP lifted its stake in shares of Sally Beauty by 3.6% during the first quarter. Dimensional Fund Advisors LP now owns 5,871,979 shares of the specialty retailer's stock valued at $81,323,000 after buying an additional 202,020 shares during the period. State Street Corp raised its holdings in Sally Beauty by 4.4% in the 4th quarter. State Street Corp now owns 4,606,736 shares of the specialty retailer's stock valued at $65,692,000 after acquiring an additional 192,560 shares during the last quarter. Wasatch Advisors LP acquired a new position in Sally Beauty in the 3rd quarter valued at $74,842,000. Goldman Sachs Group Inc. lifted its stake in shares of Sally Beauty by 46.0% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,981,998 shares of the specialty retailer's stock worth $56,783,000 after purchasing an additional 1,254,125 shares during the period. Finally, LSV Asset Management lifted its stake in shares of Sally Beauty by 12.9% during the 4th quarter. LSV Asset Management now owns 3,793,195 shares of the specialty retailer's stock worth $54,091,000 after purchasing an additional 433,855 shares during the period.

Sally Beauty Stock Up 14.6%

The firm has a fifty day moving average price of $13.95 and a 200-day moving average price of $14.39. The company has a quick ratio of 0.55, a current ratio of 2.34 and a debt-to-equity ratio of 0.98. The firm has a market cap of $1.64 billion, a price-to-earnings ratio of 9.45 and a beta of 1.02.

About Sally Beauty

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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