Zacks Investment Research upgraded shares of Sally Beauty (NYSE:SBH) from a sell rating to a hold rating in a research note issued to investors on Friday.
According to Zacks, “Shares of Sally Beauty has outpaced the industry in the past three months. The company is adopting several initiatives to stoke top-line growth. It 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, it has been pursuing strategic acquisitions, the latest being H. Chalut Ltée. However, the company is grappling with soft sales that can be attributable to dismal comps at the SBS and BSG segments in the quarter. Further, management expects same store sales to decline further in fiscal 2018. Moreover, the company witnessed contraction in gross margin for the past two quarters due to a negative revenue mix shift and rise in coupon redemption.”
Other analysts have also issued reports about the stock. Bank of America lowered shares of Sally Beauty from a neutral rating to an underperform rating and cut their price target for the stock from $17.00 to $15.00 in a research note on Monday, July 16th. beau lowered shares of Sally Beauty from a neutral rating to an underperform rating and cut their price target for the stock from $17.00 to $15.00 in a research note on Tuesday, July 17th. Jefferies Financial Group set a $14.00 target price on shares of Sally Beauty and gave the stock a hold rating in a research note on Thursday, August 2nd. Morgan Stanley cut their target price on shares of Sally Beauty from $13.50 to $13.00 and set an underweight rating on the stock in a research note on Monday, August 6th. Finally, BMO Capital Markets cut their target price on shares of Sally Beauty from $16.00 to $14.00 and set a hold rating on the stock in a research note on Monday, August 6th. Five equities research analysts have rated the stock with a sell rating and nine have given a hold rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $16.00.
Sally Beauty (NYSE:SBH) last issued its quarterly earnings data on Thursday, August 2nd. The specialty retailer reported $0.60 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.60. The firm had revenue of $996.28 million for the quarter, compared to analyst estimates of $995.30 million. Sally Beauty had a net margin of 6.05% and a negative return on equity of 76.04%. Sally Beauty’s revenue was down .2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.52 EPS. Sell-side analysts forecast that Sally Beauty will post 2.12 earnings per share for the current year.
In other Sally Beauty news, CEO Christian A. Brickman purchased 16,000 shares of the stock in a transaction that occurred on Wednesday, August 15th. The stock was purchased at an average cost of $13.90 per share, with a total value of $222,400.00. Following the completion of the acquisition, the chief executive officer now directly owns 278,664 shares of the company’s stock, valued at approximately $3,873,429.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Aaron E. Alt purchased 4,000 shares of the stock in a transaction that occurred on Monday, August 6th. The stock was acquired at an average cost of $14.07 per share, with a total value of $56,280.00. Following the completion of the acquisition, the chief financial officer now directly owns 69,619 shares of the company’s stock, valued at $979,539.33. The disclosure for this purchase can be found here. 1.48% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Hodges Capital Management Inc. acquired a new position in Sally Beauty in the third quarter valued at approximately $1,254,000. ST Germain D J Co. Inc. boosted its holdings in Sally Beauty by 0.8% in the third quarter. ST Germain D J Co. Inc. now owns 782,034 shares of the specialty retailer’s stock valued at $14,382,000 after purchasing an additional 6,505 shares in the last quarter. Fox Run Management L.L.C. acquired a new position in Sally Beauty in the third quarter valued at approximately $234,000. Northern Trust Corp boosted its holdings in Sally Beauty by 65.1% in 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, Nelson Van Denburg & Campbell Wealth Management Group LLC boosted its holdings in Sally Beauty by 41.6% in the second quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 24,186 shares of the specialty retailer’s stock valued at $388,000 after purchasing an additional 7,109 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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