Sally Beauty (NYSE:SBH) Shares Down 7.8% – Should You Sell?

Sally Beauty Holdings, Inc. (NYSE:SBH)’s share price dropped 7.8% during trading on Monday . The stock traded as low as $12.97 and last traded at $12.94. Approximately 272,280 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 1,576,219 shares. The stock had previously closed at $14.03.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on SBH. Wall Street Zen raised shares of Sally Beauty from a “hold” rating to a “buy” rating in a report on Tuesday, March 10th. TD Cowen dropped their target price on shares of Sally Beauty from $20.00 to $17.00 and set a “buy” rating on the stock in a report on Tuesday. Jefferies Financial Group reissued a “hold” rating and set a $16.00 target price on shares of Sally Beauty in a research note on Wednesday, January 14th. Morgan Stanley reduced 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. Finally, Raymond James Financial upgraded shares of Sally Beauty from a “market perform” rating to an “outperform” rating and set a $19.00 price target on the stock in a research report on Wednesday, January 21st. Three investment 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. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $17.00.

Sally Beauty Stock Down 4.1%

The business’s 50-day moving average price is $14.18 and its 200-day moving average price is $14.93. The company has a quick ratio of 0.57, a current ratio of 2.34 and a debt-to-equity ratio of 0.98. The firm has a market capitalization of $1.21 billion, a PE ratio of 6.88 and a beta of 1.07.

Sally Beauty (NYSE:SBH) last announced its quarterly earnings data on Monday, May 11th. The specialty retailer reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.03. The firm had revenue of $903.38 million for the quarter, compared to the consensus estimate of $900.78 million. Sally Beauty had a net margin of 4.93% and a return on equity of 24.95%. The firm’s revenue was up 2.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.42 earnings per share. Sally Beauty has set its Q3 2026 guidance at 0.520-0.560 EPS. As a group, equities research analysts predict that Sally Beauty Holdings, Inc. will post 2.07 EPS for the current fiscal year.

Hedge Funds Weigh In On Sally Beauty

Several institutional investors and hedge funds have recently modified their holdings of the stock. Larson Financial Group LLC raised its holdings in shares of Sally Beauty by 392.5% during the third quarter. Larson Financial Group LLC now owns 1,906 shares of the specialty retailer’s stock worth $31,000 after acquiring an additional 1,519 shares in the last quarter. iSAM Funds UK Ltd purchased a new position in Sally Beauty in the third quarter valued at about $35,000. Intesa Sanpaolo Wealth Management acquired a new position in Sally Beauty in the 4th quarter worth about $36,000. KBC Group NV acquired a new position in Sally Beauty in the 1st quarter worth about $39,000. Finally, Osaic Holdings Inc. raised its stake in shares of 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 purchasing an additional 2,730 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.