Sally Beauty (NYSE:SBH) Rating Increased to Buy at Wall Street Zen

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

A number of other equities research analysts have also issued reports on the company. Weiss Ratings raised Sally Beauty from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, June 4th. Morgan Stanley decreased their price target on Sally Beauty from $16.00 to $13.00 and set an “underweight” rating for the company in a research note on Tuesday, May 12th. Finally, TD Cowen decreased their price target on Sally Beauty from $20.00 to $17.00 and set a “buy” rating for the company in a research note on Tuesday, May 12th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $17.00.

Sally Beauty Price Performance

NYSE:SBH opened at $13.87 on Friday. The firm has a market capitalization of $1.32 billion, a price-to-earnings ratio of 7.66 and a beta of 1.04. Sally Beauty has a 1 year low of $8.45 and a 1 year high of $17.92. The business has a 50 day simple moving average of $13.38 and a 200-day simple moving average of $14.62. The company has a debt-to-equity ratio of 0.98, a current ratio of 2.34 and a quick ratio of 0.55.

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

Insider Activity

In related news, CFO Marlo Michelle Cormier Platz sold 42,771 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $12.70, for a total transaction of $543,191.70. Following the completion of the sale, the chief financial officer directly owned 138,145 shares of the company’s stock, valued at approximately $1,754,441.50. This trade represents a 23.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Osaic Holdings Inc. grew its stake in Sally Beauty by 1,365.0% during the 2nd quarter. Osaic Holdings Inc. now owns 2,930 shares of the specialty retailer’s stock worth $27,000 after buying an additional 2,730 shares during the last quarter. Larson Financial Group LLC grew its stake in Sally Beauty by 392.5% during the 3rd quarter. Larson Financial Group LLC now owns 1,906 shares of the specialty retailer’s stock worth $31,000 after buying an additional 1,519 shares during the last quarter. Raymond James Financial Inc. purchased a new position in Sally Beauty during the 2nd quarter worth $34,000. iSAM Funds UK Ltd purchased a new position in Sally Beauty during the 3rd quarter worth $35,000. Finally, Intesa Sanpaolo Wealth Management purchased a new position in Sally Beauty during the 4th quarter worth $36,000.

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.