Sally Beauty (NYSE:SBH) Trading 21.2% Higher on Better-Than-Expected Earnings

Sally Beauty Holdings, Inc. (NYSE:SBH) traded up 21.2% during mid-day trading on Monday following a stronger than expected earnings report. The stock traded as high as $10.43 and last traded at $9.91. 644,470 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 2,324,083 shares. The stock had previously closed at $8.17.

The specialty retailer reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.03. The firm had revenue of $883.15 million during the quarter, compared to analysts’ expectations of $901.00 million. Sally Beauty had a net margin of 4.73% and a return on equity of 30.35%. The company’s quarterly revenue was down 2.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.35 EPS.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. Morgan Stanley lowered their price objective on shares of Sally Beauty from $12.00 to $10.00 and set an “underweight” rating for the company in a research report on Tuesday, January 21st. DA Davidson lowered their price target on shares of Sally Beauty from $13.00 to $10.50 and set a “neutral” rating for the company in a research report on Tuesday, February 18th. Canaccord Genuity Group initiated coverage on shares of Sally Beauty in a research report on Thursday, January 16th. They set a “buy” rating and a $14.00 price target for the company. Finally, StockNews.com upgraded shares of Sally Beauty from a “hold” rating to a “buy” rating in a research report on Wednesday, February 19th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, Sally Beauty presently has a consensus rating of “Hold” and a consensus price target of $12.70.

Institutional Investors Weigh In On Sally Beauty

Institutional investors have recently modified their holdings of the business. Corient Private Wealth LLC grew its stake in shares of Sally Beauty by 5.9% in the fourth quarter. Corient Private Wealth LLC now owns 19,181 shares of the specialty retailer’s stock valued at $200,000 after acquiring an additional 1,069 shares in the last quarter. PNC Financial Services Group Inc. grew its stake in shares of Sally Beauty by 8.9% in the fourth quarter. PNC Financial Services Group Inc. now owns 13,395 shares of the specialty retailer’s stock valued at $140,000 after acquiring an additional 1,090 shares in the last quarter. SummerHaven Investment Management LLC grew its stake in shares of Sally Beauty by 1.9% in the first quarter. SummerHaven Investment Management LLC now owns 72,690 shares of the specialty retailer’s stock valued at $656,000 after acquiring an additional 1,323 shares in the last quarter. Golden State Wealth Management LLC grew its stake in shares of Sally Beauty by 100.0% in the first quarter. Golden State Wealth Management LLC now owns 3,470 shares of the specialty retailer’s stock valued at $31,000 after acquiring an additional 1,735 shares in the last quarter. Finally, Federated Hermes Inc. grew its stake in shares of Sally Beauty by 119.1% in the fourth quarter. Federated Hermes Inc. now owns 3,702 shares of the specialty retailer’s stock valued at $39,000 after acquiring an additional 2,012 shares in the last quarter.

Sally Beauty Price Performance

The company has a quick ratio of 0.44, a current ratio of 2.27 and a debt-to-equity ratio of 1.43. The company’s 50 day moving average is $8.54 and its 200 day moving average is $10.47. The firm has a market capitalization of $953.27 million, a price-to-earnings ratio of 5.60 and a beta of 1.33.

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 products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals.