According to Zacks, “Shares of Sally Beauty have lagged the industry in the past three months. The bearish run may be attributed to the company’s drab sales surprise history, which lingered in second-quarter fiscal 2019. Soft performance in SBS & BSG segments might have hurt the top line to an extent. Moreover, sales declined year over year. The company’s bottom line also missed estimates and declined on a year-over-year basis in the second quarter. It is also witnessing soft margins which may decline further in fiscal 2019. Nevertheless, it is progressing well with its transformation plan and Sally Beauty Loyalty Program. The company is upgrading its e-commerce and mobile capabilities for both its segments and plans to launch apps for the same. Sally Beauty is also undertaking supply chain efforts to optimize inventory levels and reduce costs.”
A number of other equities analysts have also issued reports on the stock. BMO Capital Markets raised shares of Sally Beauty to a “market perform” rating and set a $17.00 price target for the company in a research report on Friday, May 3rd. ValuEngine lowered shares of Sally Beauty from a “hold” rating to a “sell” rating in a research report on Thursday, April 11th. Wells Fargo & Co set a $18.00 price target on shares of Sally Beauty and gave the stock a “hold” rating in a research report on Tuesday, February 5th. Bank of America reaffirmed an “underperform” rating and set a $16.00 price objective (down previously from $19.00) on shares of Sally Beauty in a research note on Thursday, May 2nd. Finally, DA Davidson dropped their price objective on shares of Sally Beauty to $16.50 and set a “neutral” rating on the stock in a research note on Tuesday, May 7th. Six investment analysts have rated the stock with a sell rating and five have issued a hold rating to the stock. Sally Beauty currently has an average rating of “Sell” and a consensus target price of $16.31.
Sally Beauty (NYSE:SBH) last posted its quarterly earnings results on Wednesday, May 1st. The specialty retailer reported $0.51 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.03). Sally Beauty had a negative return on equity of 110.97% and a net margin of 6.28%. The business had revenue of $945.90 million for the quarter, compared to analysts’ expectations of $964.08 million. During the same period in the prior year, the business posted $0.54 earnings per share. The business’s quarterly revenue was down 3.0% compared to the same quarter last year. As a group, equities analysts predict that Sally Beauty will post 2.19 earnings per share for the current fiscal year.
In other news, CEO Christian A. Brickman acquired 10,000 shares of the company’s stock in a transaction dated Friday, May 3rd. The shares were acquired at an average price of $16.40 per share, with a total value of $164,000.00. Following the purchase, the chief executive officer now directly owns 355,332 shares of the company’s stock, valued at $5,827,444.80. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Edward W. Rabin acquired 5,500 shares of the company’s stock in a transaction dated Friday, May 3rd. The shares were purchased at an average cost of $16.38 per share, for a total transaction of $90,090.00. Following the purchase, the director now directly owns 19,732 shares in the company, valued at $323,210.16. The disclosure for this purchase can be found here. 1.04% of the stock is owned by company insiders.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Truvestments Capital LLC acquired a new stake in Sally Beauty in the 1st quarter valued at $28,000. Advisory Services Network LLC grew its stake in Sally Beauty by 118.1% in the 1st quarter. Advisory Services Network LLC now owns 1,684 shares of the specialty retailer’s stock valued at $32,000 after acquiring an additional 912 shares during the period. Rockefeller Capital Management L.P. acquired a new stake in Sally Beauty in the 1st quarter valued at $38,000. Royce & Associates LP grew its stake in Sally Beauty by 40.6% in the 1st quarter. Royce & Associates LP now owns 2,510 shares of the specialty retailer’s stock valued at $46,000 after acquiring an additional 725 shares during the period. Finally, One Wealth Advisors LLC acquired a new stake in Sally Beauty in the 1st quarter valued at $70,000.
About Sally Beauty
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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