Zacks Investment Research upgraded shares of Sally Beauty (NYSE:SBH) from a hold rating to a buy rating in a report issued on Tuesday morning. They currently have $20.00 price objective on the specialty retailer’s stock.
According to Zacks, “Sally Beauty is making efforts to put itself on growth trajectory which has led the stock to outpace the industry in the past three months. 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. Also, Sally beauty has been undertaking acquisitions, the latest being H. Chalut Ltée that will help expand its reach to Quebec. However, management provided dismal fiscal 2018 view post the company’s third-quarter results, wherein top line meet but bottom line missed the consensus mark. Soft comps performance also hurt investor sentiment. Moreover, weak gross margin continues to pose a threat as management expects margins to decline further.”
Several other research analysts have also commented on SBH. Cowen reiterated a market perform rating on shares of Sally Beauty in a report on Wednesday, June 20th. They noted that the move was a valuation call. Bank of America lowered Sally Beauty from a neutral rating to an underperform rating and reduced their price target for the stock from $17.00 to $15.00 in a report on Monday, July 16th. beau lowered Sally Beauty from a neutral rating to an underperform rating and reduced their price target for the stock from $17.00 to $15.00 in a report on Tuesday, July 17th. Jefferies Financial Group set a $14.00 price target on Sally Beauty and gave the stock a hold rating in a report on Thursday, August 2nd. Finally, Morgan Stanley reduced their price target on Sally Beauty from $13.50 to $13.00 and set an underweight rating on the stock in a report on Monday, August 6th. Four equities research analysts have rated the stock with a sell rating, nine have given a hold rating and one has issued a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $16.00.
NYSE SBH opened at $18.02 on Tuesday. Sally Beauty has a 52 week low of $13.72 and a 52 week high of $19.17. The company has a debt-to-equity ratio of -5.42, a quick ratio of 0.39 and a current ratio of 2.12. The firm has a market cap of $2.21 billion, a PE ratio of 10.01, a P/E/G ratio of 1.53 and a beta of 0.16.
Sally Beauty (NYSE:SBH) last posted its quarterly earnings results on Thursday, August 2nd. The specialty retailer reported $0.60 EPS for the quarter, hitting the consensus estimate of $0.60. Sally Beauty had a negative return on equity of 76.04% and a net margin of 6.05%. The business had revenue of $996.28 million for the quarter, compared to analyst estimates of $995.30 million. During the same quarter in the previous year, the firm earned $0.52 EPS. The company’s quarterly revenue was down .2% compared to the same quarter last year. Sell-side analysts expect that Sally Beauty will post 2.12 earnings per share for the current fiscal year.
In related news, CFO Aaron E. Alt acquired 4,000 shares of Sally Beauty stock in a transaction that occurred on Monday, August 6th. The shares were purchased at an average cost 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 Securities & Exchange Commission, which is accessible through this link. Also, CEO Christian A. Brickman acquired 16,000 shares of Sally Beauty stock in a transaction that occurred on Wednesday, August 15th. The stock was bought at an average price of $13.90 per share, for a total transaction of $222,400.00. Following the completion of 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 insiders.
Institutional investors and hedge funds have recently modified their holdings of the stock. Itau Unibanco Holding S.A. purchased a new stake in Sally Beauty in the 2nd quarter valued at about $103,000. BlueMountain Capital Management LLC purchased a new stake in Sally Beauty in the 2nd quarter valued at about $106,000. Hartford Investment Management Co. purchased a new stake in Sally Beauty in the 2nd quarter valued at about $197,000. Greenleaf Trust purchased a new stake in Sally Beauty in the 2nd quarter valued at about $204,000. Finally, Fox Run Management L.L.C. purchased a new stake in Sally Beauty in the 3rd quarter valued at about $234,000.
About Sally Beauty
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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