Sally Beauty (NYSE:SBH) Trading Down 6.7% – Here’s What Happened

Shares of Sally Beauty Holdings, Inc. (NYSE:SBH) fell 6.7% on Tuesday . The stock traded as low as $15.93 and last traded at $15.86. 882,603 shares changed hands during mid-day trading, a decline of 51% from the average session volume of 1,811,521 shares. The stock had previously closed at $17.00.

Trending Headlines about Sally Beauty

Here are the key news stories impacting Sally Beauty this week:

• Positive Sentiment: Q1 beat — Sally Beauty reported $0.48 GAAP EPS vs. ~$0.47 expected and revenue of $943.2M (up 0.6% YoY), a modest upside to estimates that supports the company’s fundamentals and cash generation. Sally Beauty Holdings Reports First Quarter Fiscal 2026 Results
• Positive Sentiment: Raised FY26 EPS floor — management lifted the low end of its full-year EPS view (FY26 now guided to roughly 2.02–2.10), signaling confidence in annual profitability even as top-line growth remains modest. Sally Beauty Raises Low End of FY26 EPS View on Q1 Earnings Beat
• Positive Sentiment: Margin improvement — commentary and reports say margins expanded in the quarter, supporting higher profitability metrics (ROE and net margin improved), which underpins the stock’s valuation resilience. Sally Beauty (NYSE:SBH) Margins Expand, Tracks NYSE Composite
• Neutral Sentiment: Analyst commentary is mixed but includes long-term bullish takes — some outlets (Zacks, Seeking Alpha) profile SBH as a longer-term growth/quality pick based on style scores and improving metrics; these are more strategic than immediate catalysts. Why Sally Beauty (SBH) is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Earnings call tone = progress with caution — management highlighted operational progress and capital allocation plans on the call, but emphasized prudence; transcripts and recaps are available for detail. Sally Beauty Earnings Call Balances Progress With Caution
• Negative Sentiment: Conservative near‑term guidance — management set Q2 EPS at $0.39–$0.42 (below the consensus ~$0.45) and gave revenue guidance slightly under Street estimates; that cautious near-term outlook is the main driver of today’s sell‑off as investors reprice forward expectations. Sally Beauty Holdings Reports First Quarter Fiscal 2026 Results

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Canaccord Genuity Group set a $20.00 target price on Sally Beauty in a report on Tuesday. Morgan Stanley boosted their target price on shares of Sally Beauty from $14.00 to $16.00 and gave the company an “underweight” rating in a research report on Tuesday. Weiss Ratings restated a “hold (c+)” rating on shares of Sally Beauty in a report on Friday, January 9th. TD Cowen upped their price objective on shares of Sally Beauty from $17.00 to $18.00 and gave the company a “buy” rating in a report on Wednesday, January 21st. Finally, Zacks Research downgraded Sally Beauty from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 21st. Three investment analysts have rated the stock with a Buy rating, four have assigned 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 $16.58.

Sally Beauty Price Performance

The stock has a market capitalization of $1.51 billion, a P/E ratio of 8.22 and a beta of 1.16. The business’s 50 day simple moving average is $15.44 and its two-hundred day simple moving average is $14.67. The company has a quick ratio of 0.54, a current ratio of 2.26 and a debt-to-equity ratio of 1.09.

Sally Beauty (NYSE:SBH) last posted its earnings results on Monday, February 9th. The specialty retailer reported $0.48 earnings per share for the quarter, topping analysts’ consensus estimates of $0.47 by $0.01. The company had revenue of $943.17 million for the quarter, compared to analyst estimates of $939.63 million. Sally Beauty had a net margin of 5.29% and a return on equity of 27.07%. The firm’s revenue was up .6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.43 EPS. Sally Beauty has set its FY 2026 guidance at 2.020-2.100 EPS and its Q2 2026 guidance at 0.390-0.420 EPS. As a group, sell-side analysts forecast that Sally Beauty Holdings, Inc. will post 1.81 earnings per share for the current fiscal year.

Insider Activity at Sally Beauty

In related news, CAO Kim Mcintosh sold 5,900 shares of the company’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $15.71, for a total transaction of $92,689.00. Following the completion of the sale, the chief accounting officer owned 21,295 shares in the company, valued at approximately $334,544.45. This represents a 21.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Scott C. Sherman sold 15,000 shares of the stock in a transaction on Monday, December 1st. The shares were sold at an average price of $16.27, for a total value of $244,050.00. Following the completion of the sale, the senior vice president directly owned 57,585 shares of the company’s stock, valued at $936,907.95. The trade was a 20.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Schroder Investment Management Group bought a new stake in Sally Beauty in the 3rd quarter worth about $160,495,000. Wasatch Advisors LP purchased a new stake in Sally Beauty in the third quarter worth $74,842,000. Arrowstreet Capital Limited Partnership lifted its position in shares of Sally Beauty by 2,768.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,220,160 shares of the specialty retailer’s stock valued at $11,299,000 after buying an additional 1,177,626 shares during the last quarter. American Century Companies Inc. grew its stake in shares of Sally Beauty by 174.4% during the 3rd quarter. American Century Companies Inc. now owns 1,660,831 shares of the specialty retailer’s stock worth $27,038,000 after acquiring an additional 1,055,669 shares during the period. Finally, Ranmore Fund Management Ltd increased its holdings in Sally Beauty by 54.6% in the 2nd quarter. Ranmore Fund Management Ltd now owns 2,196,020 shares of the specialty retailer’s stock worth $20,335,000 after acquiring an additional 776,020 shares during the last quarter.

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.