Sally Beauty (NYSE:SBH) Rating Lowered to “Hold” at Wall Street Zen

Sally Beauty (NYSE:SBH) was downgraded by research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

A number of other analysts also recently issued reports on SBH. TD Cowen lowered their price objective 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. Morgan Stanley lowered their price objective on shares of Sally Beauty from $16.00 to $13.00 and set an “underweight” rating on the stock in a report on Tuesday, May 12th. Canaccord Genuity Group lifted their price objective on shares of Sally Beauty from $19.00 to $20.00 and gave the company a “buy” rating in a report on Tuesday, February 10th. Finally, Weiss Ratings downgraded shares of Sally Beauty from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, May 22nd. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Sally Beauty currently has an average rating of “Hold” and an average price target of $17.00.

Sally Beauty Stock Performance

Shares of SBH stock opened at $13.31 on Friday. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.55 and a current ratio of 2.34. The company has a market capitalization of $1.27 billion, a P/E ratio of 7.35 and a beta of 1.07. The company’s 50 day moving average price is $13.58 and its two-hundred day moving average price is $14.73. Sally Beauty has a 52 week low of $8.45 and a 52 week high of $17.92.

Sally Beauty (NYSE:SBH) last announced its earnings results on Monday, May 11th. The specialty retailer reported $0.44 EPS for the quarter, topping the consensus estimate of $0.41 by $0.03. Sally Beauty had a net margin of 4.93% and a return on equity of 24.95%. The firm had revenue of $903.38 million for the quarter, compared to the consensus estimate of $901.43 million. During the same period last year, the company posted $0.42 EPS. The business’s quarterly revenue was up 2.3% on a year-over-year basis. Sally Beauty has set its Q3 2026 guidance at 0.520-0.560 EPS. On average, analysts expect that Sally Beauty will post 2.06 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sally Beauty

Several hedge funds and other institutional investors have recently made changes to their positions in SBH. Schroder Investment Management Group bought a new position in shares of Sally Beauty in the third quarter valued at $160,495,000. Wasatch Advisors LP bought a new position in shares of Sally Beauty in the third quarter valued at $74,842,000. Goldman Sachs Group Inc. grew its stake in shares of Sally Beauty by 46.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,981,998 shares of the specialty retailer’s stock valued at $56,783,000 after buying an additional 1,254,125 shares in the last quarter. American Century Companies Inc. grew its stake in shares of Sally Beauty by 174.4% in the third quarter. American Century Companies Inc. now owns 1,660,831 shares of the specialty retailer’s stock valued at $27,038,000 after buying an additional 1,055,669 shares in the last quarter. Finally, Lazard Asset Management LLC grew its stake in shares of Sally Beauty by 1,333.4% in the fourth quarter. Lazard Asset Management LLC now owns 840,539 shares of the specialty retailer’s stock valued at $11,986,000 after buying an additional 781,901 shares in the last quarter.

Sally Beauty Company Profile

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.