Sally Beauty (SBH) Stock Rating Lowered by Zacks Investment Research
According to Zacks, “Shares of Sally Beauty have increased in the past three months. Notably, the company pulled off second consecutive bottom-line beat, when it reported first-quarter fiscal 2019 results. The metric gained from reduced tax rate and lower share count. Moreover, earnings are expected to grow in fiscal 2019. Further, management is on track with the transformation plan and Sally Beauty Loyalty Program. Also, the company continues to launch products and is upgrading digital capabilities. Sally Beauty is also undertaking supply chain efforts to optimize inventory levels and reduce costs. However, we note that the company’s top line missed estimates in the past two quarters. During the first quarter, sales were hurt by unfavorable foreign currency impacts. Persistent softness in the SBS and BSG units might have hurt the top line to an extent. Further, soft margins, stemming from rising expenses are a worry.”
Other research analysts have also issued research reports about the company. Wells Fargo & Co set a $18.00 target price on Sally Beauty and gave the stock a “hold” rating in a research report on Tuesday, February 5th. ValuEngine upgraded Sally Beauty from a “sell” rating to a “hold” rating in a research note on Monday, February 4th. Finally, Citigroup initiated coverage on Sally Beauty in a research note on Thursday, December 20th. They issued an “underweight” rating on the stock. Five research analysts have rated the stock with a sell rating and seven have given a hold rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $17.56.
Sally Beauty (NYSE:SBH) last announced its earnings results on Tuesday, February 5th. The specialty retailer reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.05. Sally Beauty had a negative return on equity of 96.26% and a net margin of 6.12%. The firm had revenue of $989.45 million during the quarter, compared to analyst estimates of $992.83 million. During the same quarter in the prior year, the company earned $0.51 EPS. The business’s revenue was down .6% compared to the same quarter last year. On average, analysts forecast that Sally Beauty will post 2.22 earnings per share for the current fiscal year.
In related news, Director Edward W. Rabin purchased 4,500 shares of the business’s stock in a transaction that occurred on Thursday, February 7th. The shares were bought at an average price of $17.65 per share, for a total transaction of $79,425.00. Following the purchase, the director now directly owns 19,732 shares of the company’s stock, valued at approximately $348,269.80. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Aaron E. Alt purchased 2,700 shares of the business’s stock in a transaction that occurred on Thursday, February 14th. The stock was bought at an average price of $18.66 per share, for a total transaction of $50,382.00. Following the purchase, the chief financial officer now directly owns 91,091 shares in the company, valued at $1,699,758.06. The disclosure for this purchase can be found here. Corporate insiders own 1.04% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of SBH. Ardevora Asset Management LLP purchased a new stake in Sally Beauty during the 4th quarter valued at $31,597,000. Norges Bank purchased a new stake in Sally Beauty during the 4th quarter valued at $23,087,000. D. E. Shaw & Co. Inc. boosted its stake in Sally Beauty by 72.8% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 2,683,252 shares of the specialty retailer’s stock valued at $45,749,000 after purchasing an additional 1,130,288 shares during the last quarter. Bessemer Group Inc. boosted its stake in Sally Beauty by 53,202.7% during the 4th quarter. Bessemer Group Inc. now owns 826,192 shares of the specialty retailer’s stock valued at $14,087,000 after purchasing an additional 824,642 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund boosted its stake in Sally Beauty by 1,585.8% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 814,427 shares of the specialty retailer’s stock valued at $48,000 after purchasing an additional 766,117 shares during the last quarter.
Sally Beauty Company Profile
Sally Beauty Holdings, Inc 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, styling tools, and other beauty products for retail customers and salon professionals.
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