Zacks Investment Research lowered shares of Sally Beauty (NYSE:SBH) from a buy rating to a sell rating in a research note issued to investors 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 equities analysts also recently issued reports about the stock. Jefferies Financial Group set a $14.00 price objective on shares of Sally Beauty and gave the company a hold rating in a report on Thursday, August 2nd. BMO Capital Markets decreased their price objective on shares of Sally Beauty from $16.00 to $14.00 and set a hold rating on the stock in a report on Monday, August 6th. ValuEngine upgraded shares of Sally Beauty from a strong sell rating to a sell rating in a report on Friday, October 12th. beau downgraded shares of Sally Beauty from a neutral rating to an underperform rating and decreased their price objective for the company from $17.00 to $15.00 in a report on Tuesday, July 17th. Finally, Bank of America downgraded shares of Sally Beauty from a neutral rating to an underperform rating and decreased their price objective for the company from $17.00 to $15.00 in a report on Monday, July 16th. Five research analysts have rated the stock with a sell rating and nine have issued a hold rating to the stock. The stock has an average rating of Hold and an average target price of $16.00.

SBH traded down $0.76 during trading on Tuesday, reaching $17.34. 2,317,710 shares of the stock were exchanged, compared to its average volume of 1,605,361. Sally Beauty has a twelve month low of $13.72 and a twelve month high of $19.17. The company has a market cap of $2.17 billion, a price-to-earnings ratio of 9.63, a PEG ratio of 1.58 and a beta of 0.17. 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 released its quarterly earnings data on Thursday, August 2nd. The specialty retailer reported $0.60 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.60. Sally Beauty had a net margin of 6.05% and a negative return on equity of 76.04%. The firm had revenue of $996.28 million for the quarter, compared to the consensus estimate of $995.30 million. During the same period in the previous year, the company earned $0.52 earnings per share. The company’s quarterly revenue was down .2% on a year-over-year basis. As a group, research analysts forecast that Sally Beauty will post 2.12 earnings per share for the current year.

In other Sally Beauty news, CFO Aaron E. Alt bought 4,000 shares of Sally Beauty stock in a transaction dated Monday, August 6th. The stock was bought at an average price of $14.07 per share, with a total value of $56,280.00. Following the completion of the transaction, the chief financial officer now owns 69,619 shares in the company, valued at approximately $979,539.33. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Christian A. Brickman bought 16,000 shares of Sally Beauty stock in a transaction dated Wednesday, August 15th. The stock was acquired at an average cost of $13.90 per share, with a total value of $222,400.00. Following the transaction, the chief executive officer now owns 278,664 shares of the company’s stock, valued at approximately $3,873,429.60. The disclosure for this purchase can be found here. Insiders own 0.97% of the company’s stock.

Several institutional investors have recently made changes to their positions in the company. FMR LLC boosted its position in shares of Sally Beauty by 17.9% in the second quarter. FMR LLC now owns 15,075,063 shares of the specialty retailer’s stock valued at $241,654,000 after acquiring an additional 2,287,521 shares during the period. BlackRock Inc. lifted its position in Sally Beauty by 29.5% during the second quarter. BlackRock Inc. now owns 14,101,739 shares of the specialty retailer’s stock worth $226,051,000 after purchasing an additional 3,215,986 shares during the period. LSV Asset Management lifted its position in Sally Beauty by 3.5% during the second quarter. LSV Asset Management now owns 2,919,045 shares of the specialty retailer’s stock worth $46,792,000 after purchasing an additional 97,545 shares during the period. Dimensional Fund Advisors LP lifted its position in Sally Beauty by 3.2% during the second quarter. Dimensional Fund Advisors LP now owns 2,410,135 shares of the specialty retailer’s stock worth $38,636,000 after purchasing an additional 73,866 shares during the period. Finally, Northern Trust Corp lifted its position in Sally Beauty by 65.1% during the second quarter. Northern Trust Corp now owns 1,986,916 shares of the specialty retailer’s stock worth $31,850,000 after purchasing an additional 783,382 shares during the period.

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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