Wall Street Zen Upgrades Sally Beauty (NYSE:SBH) to "Buy"

Key Points

• Wall Street Zen has upgraded Sally Beauty's rating from "hold" to "buy," indicating a positive outlook for the company's stock performance.
• Canaccord Genuity Group raised its target price for Sally Beauty from $15.00 to $19.00, further reinforcing the bullish sentiment around the company's stock.
• Sally Beauty reported earnings of $0.51 per share for the past quarter, surpassing the consensus estimate by $0.09, indicating strong financial performance despite a slight decline in revenue year-over-year.

Sally Beauty (NYSE:SBH - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Friday.

Several other analysts have also commented on the stock. Canaccord Genuity Group increased their target price on shares of Sally Beauty from $15.00 to $19.00 and gave the company a "buy" rating in a research note on Monday, September 15th. Weiss Ratings reissued a "hold (c)" rating on shares of Sally Beauty in a research note on Saturday, September 27th. Zacks Research raised shares of Sally Beauty from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 5th. Cowen reissued a "buy" rating on shares of Sally Beauty in a research note on Thursday, September 4th. Finally, TD Cowen increased their target price 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. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Sally Beauty presently has a consensus rating of "Moderate Buy" and an average price target of $13.88.

Sally Beauty Price Performance

Shares of NYSE:SBH traded up $0.44 during trading on Friday, reaching $16.65. The company had a trading volume of 1,718,516 shares, compared to its average volume of 2,388,946. The firm's fifty day moving average is $13.77 and its 200 day moving average is $10.58. The firm has a market capitalization of $1.65 billion, a PE ratio of 8.95 and a beta of 1.34. Sally Beauty has a twelve month low of $7.54 and a twelve month high of $16.80. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.49 and a current ratio of 2.41.

Sally Beauty (NYSE:SBH - Get Free Report) last released its 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 during the quarter, compared to analyst estimates of $928.78 million. During the same period in the prior year, the business earned $0.45 earnings per share. The business's quarterly revenue was down 1.0% on a year-over-year basis. Sally Beauty has set its FY 2025 guidance at EPS. On average, equities analysts forecast that Sally Beauty will post 1.81 EPS for the current year.

Insider Buying and Selling at Sally Beauty

In related news, Director Max R. Rangel purchased 3,500 shares of Sally Beauty stock in a transaction on Thursday, September 4th. The stock was purchased 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 in the company, valued at approximately $49,245. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Denise Paulonis purchased 4,500 shares of Sally Beauty stock in a transaction on Friday, August 8th. The stock was bought at an average cost of $11.74 per share, with a total value of $52,830.00. Following the completion of the acquisition, the chief executive officer owned 366,865 shares in the company, valued at approximately $4,306,995.10. This trade represents a 1.24% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders purchased a total of 10,500 shares of company stock valued at $132,125 in the last ninety days. Company insiders own 1.56% of the company's stock.

Institutional Trading of Sally Beauty

Hedge funds have recently bought and sold shares of the stock. Osaic Holdings Inc. boosted its holdings in Sally Beauty by 1,365.0% in the 2nd quarter. Osaic Holdings Inc. now owns 2,930 shares of the specialty retailer's stock valued at $27,000 after purchasing an additional 2,730 shares during the period. Golden State Wealth Management LLC boosted 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 purchasing an additional 1,735 shares during the period. Raymond James Financial Inc. bought a new stake in Sally Beauty in the 2nd quarter valued at $34,000. Parallel Advisors LLC boosted its holdings in Sally Beauty by 536.4% in the 1st quarter. Parallel Advisors LLC now owns 3,920 shares of the specialty retailer's stock valued at $35,000 after purchasing an additional 3,304 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in Sally Beauty by 820.3% in the 1st quarter. GAMMA Investing LLC now owns 4,712 shares of the specialty retailer's stock valued at $43,000 after purchasing an additional 4,200 shares during the period.

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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