Sally Beauty (NYSE:SBH) Stock Price Down 6.7% – Here’s Why

Sally Beauty Holdings, Inc. (NYSE:SBH) shares traded down 6.7% on Tuesday . The company traded as low as $15.93 and last traded at $15.86. 882,603 shares traded hands during trading, a decline of 51% from the average session volume of 1,811,521 shares. The stock had previously closed at $17.00.

Key Stories Impacting Sally Beauty

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

• Positive Sentiment: Q1 beat — Sally Beauty reported $0.48 GAAP EPS vs. ~$0.47 expected and revenue of $943.2M (up 0.6% YoY), a modest upside to estimates that supports the company’s fundamentals and cash generation. Sally Beauty Holdings Reports First Quarter Fiscal 2026 Results
• Positive Sentiment: Raised FY26 EPS floor — management lifted the low end of its full-year EPS view (FY26 now guided to roughly 2.02–2.10), signaling confidence in annual profitability even as top-line growth remains modest. Sally Beauty Raises Low End of FY26 EPS View on Q1 Earnings Beat
• Positive Sentiment: Margin improvement — commentary and reports say margins expanded in the quarter, supporting higher profitability metrics (ROE and net margin improved), which underpins the stock’s valuation resilience. Sally Beauty (NYSE:SBH) Margins Expand, Tracks NYSE Composite
• Neutral Sentiment: Analyst commentary is mixed but includes long-term bullish takes — some outlets (Zacks, Seeking Alpha) profile SBH as a longer-term growth/quality pick based on style scores and improving metrics; these are more strategic than immediate catalysts. Why Sally Beauty (SBH) is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Earnings call tone = progress with caution — management highlighted operational progress and capital allocation plans on the call, but emphasized prudence; transcripts and recaps are available for detail. Sally Beauty Earnings Call Balances Progress With Caution
• Negative Sentiment: Conservative near?term guidance — management set Q2 EPS at $0.39–$0.42 (below the consensus ~$0.45) and gave revenue guidance slightly under Street estimates; that cautious near-term outlook is the main driver of today’s sell?off as investors reprice forward expectations. Sally Beauty Holdings Reports First Quarter Fiscal 2026 Results

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Jefferies Financial Group reissued a “hold” rating and issued a $16.00 price objective on shares of Sally Beauty in a research report on Wednesday, January 14th. Zacks Research lowered Sally Beauty from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 21st. TD Cowen lifted their target price on Sally Beauty from $17.00 to $18.00 and gave the stock a “buy” rating in a research note on Wednesday, January 21st. Weiss Ratings reissued a “hold (c+)” rating on shares of Sally Beauty in a report on Friday, January 9th. Finally, Raymond James Financial raised shares of Sally Beauty from a “market perform” rating to an “outperform” rating and set a $19.00 price objective for the company in a research report on Wednesday, January 21st. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Sally Beauty currently has a consensus rating of “Hold” and an average price target of $16.58.

Sally Beauty Stock Down 8.8%

The firm has a 50-day simple moving average of $15.44 and a two-hundred day simple moving average of $14.67. The stock has a market cap of $1.51 billion, a P/E ratio of 8.22 and a beta of 1.16. The company has a current ratio of 2.26, a quick ratio of 0.54 and a debt-to-equity ratio of 1.09.

Sally Beauty (NYSE:SBH) last released its quarterly earnings results on Monday, February 9th. The specialty retailer reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.47 by $0.01. The business had revenue of $943.17 million for the quarter, compared to analyst estimates of $939.63 million. Sally Beauty had a net margin of 5.29% and a return on equity of 27.07%. Sally Beauty’s revenue for the quarter was up .6% compared to the same quarter last year. During the same period last year, the firm earned $0.43 earnings per share. Sally Beauty has set its FY 2026 guidance at 2.020-2.100 EPS and its Q2 2026 guidance at 0.390-0.420 EPS. Equities research analysts expect that Sally Beauty Holdings, Inc. will post 1.81 earnings per share for the current fiscal year.

Insider Buying and Selling at Sally Beauty

In related news, SVP Scott C. Sherman sold 15,000 shares of the company’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $16.27, for a total transaction of $244,050.00. Following the completion of the sale, the senior vice president owned 57,585 shares of the company’s stock, valued at $936,907.95. This represents a 20.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Kim Mcintosh sold 5,900 shares of the stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $15.71, for a total transaction of $92,689.00. Following the sale, the chief accounting officer owned 21,295 shares in the company, valued at $334,544.45. The trade was a 21.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Sally Beauty

A number of large investors have recently modified their holdings of SBH. Hillsdale Investment Management Inc. raised its holdings in Sally Beauty by 52.9% during the 2nd quarter. Hillsdale Investment Management Inc. now owns 482,576 shares of the specialty retailer’s stock worth $4,469,000 after purchasing an additional 166,900 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH increased its position in shares of Sally Beauty by 43.9% during the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 277,926 shares of the specialty retailer’s stock worth $4,525,000 after buying an additional 84,763 shares during the period. Teacher Retirement System of Texas raised its stake in Sally Beauty by 58.7% during the third quarter. Teacher Retirement System of Texas now owns 578,570 shares of the specialty retailer’s stock worth $9,419,000 after buying an additional 214,066 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new position in Sally Beauty in the second quarter valued at $515,000. Finally, Texas Permanent School Fund Corp boosted its position in Sally Beauty by 158.1% during the second quarter. Texas Permanent School Fund Corp now owns 146,344 shares of the specialty retailer’s stock valued at $1,355,000 after acquiring an additional 89,634 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.