Zacks Investment Research Upgrades Sally Beauty (SBH) to “Buy”
Zacks Investment Research upgraded shares of Sally Beauty (NYSE:SBH) from a hold rating to a buy rating in a report issued on Monday morning. Zacks Investment Research currently has $23.00 target price on the specialty retailer’s stock.
According to Zacks, “Shares of Sally Beauty have outpaced the industry in the past three months. This was led by robust bottom line view for fiscal 2019 backed by reduced tax rate, owing to U.S. tax reform and lower share count. Although the top line lagged, the company’s bottom line beat the Zacks Consensus Estimate in fourth-quarter fiscal 2018. Sally Beauty is on track with its transformation plan announced in April 2018. As part of the plan, the company initiated a new Sally Beauty Loyalty Program. It also launched box colors and is all set to offer Pravana brand to its U.S. customers. Additionally, the company is making efforts to enhance its digital platform by updating its e-commerce and mobile commerce capabilities to improve customer’s shopping experience. However, the company is grappling with contraction in adjusted operating margin for a while now. Moving ahead in fiscal 2019, management expects margins to decline further.”
A number of other analysts also recently issued reports on the stock. BMO Capital Markets set a $22.00 price target on shares of Sally Beauty and gave the company a hold rating in a report on Monday. DA Davidson raised their price target on shares of Sally Beauty to $19.00 and gave the company a neutral rating in a report on Friday, November 9th. Jefferies Financial Group set a $15.00 price target on shares of Sally Beauty and gave the company a sell rating in a report on Friday, November 9th. ValuEngine raised shares of Sally Beauty from a sell rating to a hold rating in a report on Thursday, November 8th. Finally, Bank of America raised their price target on shares of Sally Beauty from $14.00 to $16.00 and gave the company a sell rating in a report on Thursday, October 4th. Four investment analysts have rated the stock with a sell rating, eight have given a hold rating and one has issued a buy rating to the stock. Sally Beauty has an average rating of Hold and an average target price of $17.22.
Sally Beauty (NYSE:SBH) last announced its quarterly earnings results on Thursday, November 8th. The specialty retailer reported $0.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.48 by $0.03. The firm had revenue of $966.00 million for the quarter, compared to the consensus estimate of $965.98 million. Sally Beauty had a net margin of 6.56% and a negative return on equity of 82.55%. The business’s quarterly revenue was down .8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.45 EPS. As a group, sell-side analysts forecast that Sally Beauty will post 2.22 earnings per share for the current year.
In other Sally Beauty news, CFO Aaron E. Alt acquired 2,400 shares of the company’s stock in a transaction that occurred on Tuesday, November 13th. The shares were bought at an average price of $20.75 per share, with a total value of $49,800.00. Following the completion of the acquisition, the chief financial officer now owns 88,391 shares in the company, valued at approximately $1,834,113.25. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Scott C. Sherman sold 3,100 shares of the firm’s stock in a transaction that occurred on Monday, November 12th. The stock was sold at an average price of $21.72, for a total transaction of $67,332.00. Following the completion of the transaction, the senior vice president now directly owns 13,312 shares in the company, valued at approximately $289,136.64. The disclosure for this sale can be found here. Company insiders own 1.48% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of SBH. BlackRock Inc. boosted its holdings in shares of Sally Beauty by 29.5% in the second quarter. BlackRock Inc. now owns 14,101,739 shares of the specialty retailer’s stock worth $226,051,000 after buying an additional 3,215,986 shares during the last quarter. FMR LLC lifted its holdings in Sally Beauty by 17.9% during the second quarter. FMR LLC now owns 15,075,063 shares of the specialty retailer’s stock valued at $241,654,000 after purchasing an additional 2,287,521 shares in the last quarter. United Services Automobile Association lifted its holdings in Sally Beauty by 273.7% during the second quarter. United Services Automobile Association now owns 1,097,402 shares of the specialty retailer’s stock valued at $214,103,000 after purchasing an additional 803,742 shares in the last quarter. Northern Trust Corp lifted its holdings 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 valued at $31,850,000 after purchasing an additional 783,382 shares in the last quarter. Finally, SG Americas Securities LLC lifted its holdings in Sally Beauty by 1,779.6% during the second quarter. SG Americas Securities LLC now owns 580,037 shares of the specialty retailer’s stock valued at $9,298,000 after purchasing an additional 549,178 shares in the last quarter.
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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