Sally Beauty (NYSE:SBH) Upgraded at Wall Street Zen

Key Points

• Sally Beauty has been upgraded from a "hold" rating to a "buy" rating by Wall Street Zen, indicating increased confidence in the stock's potential.
• The stock's price target has been adjusted by several research firms, with TD Cowen raising it to $16.00 and Canaccord Genuity increasing it to $19.00, reflecting positive market sentiment.
• In the most recent quarterly earnings, Sally Beauty reported earnings per share of $0.51, surpassing estimates and showing resilience despite a slight year-over-year revenue decline.

Sally Beauty (NYSE:SBH - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

Several other research firms also recently commented on SBH. TD Cowen upped their price target on shares of Sally Beauty from $13.00 to $16.00 and gave the company a "buy" rating in a research note on Thursday, September 4th. Cowen reiterated a "buy" rating on shares of Sally Beauty in a research note on Thursday, September 4th. Weiss Ratings reiterated a "hold (c)" rating on shares of Sally Beauty in a research note on Saturday, September 27th. Zacks Research upgraded shares of Sally Beauty from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 5th. Finally, Canaccord Genuity Group increased their price objective on shares of Sally Beauty from $15.00 to $19.00 and gave the stock a "buy" rating in a research note on Monday, September 15th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $13.88.

Sally Beauty Trading Down 5.6%

SBH stock opened at $14.06 on Friday. 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's 50-day simple moving average is $14.31 and its 200 day simple moving average is $10.81. Sally Beauty has a 52 week low of $7.54 and a 52 week high of $16.82. The company has a market capitalization of $1.39 billion, a PE ratio of 7.56 and a beta of 1.34.

Sally Beauty (NYSE:SBH - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The specialty retailer reported $0.51 EPS 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 business had revenue of $933.31 million for the quarter, compared to the consensus estimate of $928.78 million. During the same period in the prior year, the company posted $0.45 earnings per share. Sally Beauty's revenue was down 1.0% compared to the same quarter last year. Sally Beauty has set its FY 2025 guidance at EPS. As a group, sell-side analysts anticipate that Sally Beauty will post 1.81 earnings per share for the current year.

Insider Activity

In related news, Director Max R. Rangel purchased 3,500 shares of Sally Beauty stock in a transaction dated Thursday, September 4th. The shares were bought at an average cost of $14.07 per share, for a total transaction of $49,245.00. Following the purchase, the director owned 3,500 shares in the company, valued at approximately $49,245. This trade represents a ∞ increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Diana Sue Ferguson purchased 2,500 shares of Sally Beauty stock in a transaction dated Thursday, August 7th. The stock was bought at an average price of $12.02 per share, for a total transaction of $30,050.00. Following the completion of the purchase, the director owned 7,912 shares in the company, valued at $95,102.24. This represents a 46.19% increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 10,500 shares of company stock worth $132,125. Corporate insiders own 1.56% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SBH. GAMMA Investing LLC raised its holdings in Sally Beauty by 8,210.4% in the 1st quarter. GAMMA Investing LLC now owns 42,549 shares of the specialty retailer's stock valued at $384,000 after buying an additional 42,037 shares during the last quarter. SG Americas Securities LLC bought a new position in Sally Beauty in the 1st quarter valued at approximately $309,000. Exchange Traded Concepts LLC bought a new position in Sally Beauty in the 1st quarter valued at approximately $1,042,000. 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 last quarter. Finally, Diversified Trust Co bought a new position in Sally Beauty in the 1st quarter valued at approximately $250,000.

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.

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