Sally Beauty (NYSE:SBH) Stock Price Down 7.8% – Here’s Why

Sally Beauty Holdings, Inc. (NYSE:SBH)’s stock price fell 7.8% during mid-day trading on Monday . The stock traded as low as $12.97 and last traded at $12.94. 272,280 shares were traded during mid-day trading, a decline of 83% from the average session volume of 1,576,219 shares. The stock had previously closed at $14.03.

Key Sally Beauty News

Here are the key news stories impacting Sally Beauty this week:

• Positive Sentiment: Sally Beauty reported Q2 EPS of $0.44 versus the $0.41 consensus and revenue of $903.4 million, slightly above estimates, showing the business is still growing modestly year over year.
• Positive Sentiment: Operating cash flow improved sharply and gross profit, operating profit, and net income all rose from a year ago, suggesting solid underlying execution and better profitability.
• Positive Sentiment: Management said results reflected “solid execution” and resilience, and the company tightened its outlook for fiscal 2026, which can signal greater confidence in the rest of the year.
• Neutral Sentiment: Several articles highlighted that the stock initially gained on the earnings beat and solid guidance before turning lower during the session, indicating a volatile investor reaction to the report.
• Negative Sentiment: Third-quarter guidance appears below Wall Street expectations, with EPS guidance of $0.52-$0.56 versus the $0.58 consensus and revenue guidance of $932 million-$942 million versus $947 million expected.
• Negative Sentiment: Some investors may also be focused on insider selling and recent institutional outflows, which could add pressure to sentiment even after the earnings beat.

Analyst Ratings Changes

Several brokerages have recently issued reports on SBH. Jefferies Financial Group reissued a “hold” rating and issued a $16.00 target price on shares of Sally Beauty in a research report on Wednesday, January 14th. Canaccord Genuity Group upped their price target on Sally Beauty from $19.00 to $20.00 and gave the stock a “buy” rating in a research note on Tuesday, February 10th. Wall Street Zen upgraded Sally Beauty from a “hold” rating to a “buy” rating in a research note on Tuesday, March 10th. Raymond James Financial upgraded Sally Beauty from a “market perform” rating to an “outperform” rating and set a $19.00 price target on the stock in a research note on Wednesday, January 21st. Finally, Morgan Stanley upped their price target on Sally Beauty from $14.00 to $16.00 and gave the stock an “underweight” rating in a research note on Tuesday, February 10th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $17.80.

Sally Beauty Trading Down 7.5%

The firm has a 50 day simple moving average of $14.36 and a 200 day simple moving average of $14.97. The company has a current ratio of 2.37, a quick ratio of 0.57 and a debt-to-equity ratio of 1.02. The firm has a market capitalization of $1.26 billion, a PE ratio of 7.37 and a beta of 1.07.

Sally Beauty (NYSE:SBH) last issued its earnings results on Monday, May 11th. The specialty retailer reported $0.44 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03. Sally Beauty had a return on equity of 26.07% and a net margin of 4.87%.The business had revenue of $903.38 million for the quarter, compared to the consensus estimate of $900.78 million. During the same period last year, the business posted $0.42 EPS. The company’s revenue was up 2.3% compared to the same quarter last year. Sally Beauty has set its Q3 2026 guidance at 0.520-0.560 EPS. Equities analysts expect that Sally Beauty Holdings, Inc. will post 2.07 earnings per share for the current fiscal year.

Institutional Trading of Sally Beauty

Several institutional investors have recently added to or reduced their stakes in SBH. Schroder Investment Management Group purchased a new stake in Sally Beauty during the 3rd quarter valued at $160,495,000. Wasatch Advisors LP purchased a new stake in Sally Beauty during the 3rd quarter valued at $74,842,000. Goldman Sachs Group Inc. boosted its stake in Sally Beauty by 46.0% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,981,998 shares of the specialty retailer’s stock valued at $56,783,000 after purchasing an additional 1,254,125 shares during the last quarter. American Century Companies Inc. boosted its stake in Sally Beauty by 174.4% during the 3rd quarter. American Century Companies Inc. now owns 1,660,831 shares of the specialty retailer’s stock valued at $27,038,000 after purchasing an additional 1,055,669 shares during the last quarter. Finally, Lazard Asset Management LLC boosted its stake in Sally Beauty by 1,333.4% during the 4th quarter. Lazard Asset Management LLC now owns 840,539 shares of the specialty retailer’s stock valued at $11,986,000 after purchasing an additional 781,901 shares during the last quarter.

About Sally Beauty

Sally Beauty Holdings, Inc is a leading global specialty retailer and distributor of professional beauty supplies, serving both retail customers and salon professionals. The company operates two primary channels: Sally Beauty Supply, which offers a broad assortment of hair color, hair care, styling, and skincare products; and Beauty Systems Group (BSG), which provides salon-quality products and supplies to professional stylists and salon owners. With a focus on catering to diverse customer needs, Sally Beauty offers well-known brands alongside private label lines, positioning itself as a one-stop source for beauty professionals and enthusiasts alike.

Founded in 1964 and headquartered in Denton, Texas, Sally Beauty has grown through a combination of organic expansion and strategic acquisitions.