Sally Beauty (NYSE:SBH) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a research report issued on Tuesday.

According to Zacks, “Shares of Sally Beauty has underperformed the industry in the past three months. We note that year-over-year decline in the top line during the third quarter of fiscal 2018 hurt investor sentiment. The reason behind soft sales can be attributable to dismal comps at the SBS and BSG segments in the quarter. Going forward, management expects same store sales to decline further in fiscal 2018. Moreover, the company witnessed contraction of gross margin for the past two quarters impacted by a negative revenue mix shift and rise in coupon redemptions. However, the company is on track with the transformation plan aimed at reducing cost and focusing on the core categories — hair color and hair care. In this regard, it has launched new Sally Beauty Loyalty Program and a new point-of-sale system for both its segments. As a result, management continues to expect double-digit growth in adjusted earnings for fiscal 2018.”

Other analysts also recently issued research reports about the company. BMO Capital Markets dropped their price objective on Sally Beauty from $16.00 to $14.00 and set a “hold” rating on the stock in a research note on Monday, August 6th. Jefferies Financial Group set a $14.00 price objective on Sally Beauty and gave the stock a “hold” rating in a research note on Thursday, August 2nd. Cowen reaffirmed a “market perform” rating on shares of Sally Beauty in a research note on Wednesday, June 20th. They noted that the move was a valuation call. ValuEngine raised Sally Beauty from a “strong sell” rating to a “sell” rating in a research note on Friday. Finally, Bank of America raised their price objective on Sally Beauty from $14.00 to $16.00 and gave the stock a “sell” rating in a research note on Thursday, October 4th. Five investment analysts have rated the stock with a sell rating and nine have issued a hold rating to the stock. Sally Beauty has an average rating of “Hold” and a consensus target price of $16.00.

Sally Beauty stock traded up $0.40 during mid-day trading on Tuesday, hitting $18.89. 73,554 shares of the company’s stock were exchanged, compared to its average volume of 1,937,745. The company has a market capitalization of $2.21 billion, a PE ratio of 10.51, a PEG ratio of 1.53 and a beta of 0.16. Sally Beauty has a fifty-two week low of $13.72 and a fifty-two week high of $19.17. The company has a current ratio of 2.12, a quick ratio of 0.39 and a debt-to-equity ratio of -5.42.

Sally Beauty (NYSE:SBH) last issued its quarterly earnings data on Thursday, August 2nd. The specialty retailer reported $0.60 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.60. The business had revenue of $996.28 million for the quarter, compared to the consensus estimate of $995.30 million. Sally Beauty had a negative return on equity of 76.04% and a net margin of 6.05%. The firm’s revenue was down .2% compared to the same quarter last year. During the same quarter last year, the business posted $0.52 EPS. Analysts predict that Sally Beauty will post 2.12 EPS for the current fiscal year.

In other news, CFO Aaron E. Alt bought 4,000 shares of the stock in a transaction on Monday, August 6th. The stock was purchased at an average price of $14.07 per share, for a total transaction of $56,280.00. Following the acquisition, the chief financial officer now owns 69,619 shares in the company, valued at $979,539.33. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Christian A. Brickman bought 16,000 shares of the stock in a transaction on Wednesday, August 15th. The shares were purchased at an average price of $13.90 per share, with a total value of $222,400.00. Following the acquisition, the chief executive officer now owns 278,664 shares in the company, valued at approximately $3,873,429.60. The disclosure for this purchase can be found here. 1.48% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in SBH. Itau Unibanco Holding S.A. bought a new position in shares of Sally Beauty in the 2nd quarter valued at about $103,000. BlueMountain Capital Management LLC bought a new position in shares of Sally Beauty in the 2nd quarter valued at about $106,000. Hartford Investment Management Co. bought a new position in shares of Sally Beauty in the 2nd quarter valued at about $197,000. Greenleaf Trust bought a new position in shares of Sally Beauty in the 2nd quarter valued at about $204,000. Finally, Fox Run Management L.L.C. bought a new position in shares of Sally Beauty in the 3rd quarter valued at about $234,000.

Sally Beauty Company Profile

Sally Beauty Holdings, Inc, together with its subsidiaries, 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, skin and nail care, beauty sundries, and styling tools for retail customers and salon professionals.

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Analyst Recommendations for Sally Beauty (NYSE:SBH)

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