Sally Beauty Holdings Inc (NYSE: SBH)’s stock price has decreased by -1.71 compared to its previous closing price of 11.10. However, the company has seen a 5.82% increase in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-22 that Sally Beauty (SBH) continues to battle tough macroeconomic challenges that have been putting pressure on consumer spending.
Is It Worth Investing in Sally Beauty Holdings Inc (NYSE: SBH) Right Now?
The price-to-earnings ratio for Sally Beauty Holdings Inc (NYSE: SBH) is 6.91x, which is above its average ratio. Moreover, the 36-month beta value for SBH is 1.49. Analysts have varying opinions on the stock, with 2 analysts rating it as a “buy,” 1 as “overweight,” 9 as “hold,” and 2 as “sell.”
The public float for SBH is 103.35M and currently, short sellers hold a 12.45% of that float. On April 25, 2024, SBH’s average trading volume was 1.44M shares.
SBH’s Market Performance
SBH’s stock has seen a 5.82% increase for the week, with a -3.96% drop in the past month and a -6.75% fall in the past quarter. The volatility ratio for the week is 2.95%, and the volatility levels for the past 30 days are at 3.82% for Sally Beauty Holdings Inc The simple moving average for the past 20 days is -1.94% for SBH’s stock, with a 0.10% simple moving average for the past 200 days.
Analysts’ Opinion of SBH
Many brokerage firms have already submitted their reports for SBH stocks, with Piper Sandler repeating the rating for SBH by listing it as a “Overweight.” The predicted price for SBH in the upcoming period, according to Piper Sandler is $15 based on the research report published on December 15, 2022 of the previous year 2022.
Cowen, on the other hand, stated in their research note that they expect to see SBH reach a price target of $17. The rating they have provided for SBH stocks is “Market Perform” according to the report published on August 12th, 2022.
SBH Trading at -9.23% from the 50-Day Moving Average
After a stumble in the market that brought SBH to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -25.48% of loss for the given period.
Volatility was left at 3.82%, however, over the last 30 days, the volatility rate increased by 2.95%, as shares sank -6.19% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -20.77% lower at present.
During the last 5 trading sessions, SBH rose by +5.82%, which changed the moving average for the period of 200-days by -9.39% in comparison to the 20-day moving average, which settled at $11.09. In addition, Sally Beauty Holdings Inc saw -17.85% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SBH starting from Sherman Scott C, who sale 10,000 shares at the price of $12.95 back on Feb 22 ’24. After this action, Sherman Scott C now owns 35,014 shares of Sally Beauty Holdings Inc, valued at $129,520 using the latest closing price.
Paulonis Denise, the President & CEO of Sally Beauty Holdings Inc, purchase 4,000 shares at $11.29 during a trade that took place back on Dec 12 ’23, which means that Paulonis Denise is holding 170,826 shares at $45,160 based on the most recent closing price.
Stock Fundamentals for SBH
Current profitability levels for the company are sitting at:
- 0.08 for the present operating margin
- 0.51 for the gross margin
The net margin for Sally Beauty Holdings Inc stands at 0.05. The total capital return value is set at 0.13. Equity return is now at value 37.75, with 6.39 for asset returns.
Based on Sally Beauty Holdings Inc (SBH), the company’s capital structure generated 0.75 points at debt to capital in total, while cash flow to debt ratio is standing at 0.15. The debt to equity ratio resting at 3.06. The interest coverage ratio of the stock is 4.0.
Currently, EBITDA for the company is 342.23 million with net debt to EBITDA at 4.48. When we switch over and look at the enterprise to sales, we see a ratio of 0.72. The receivables turnover for the company is 47.17for trailing twelve months and the total asset turnover is 1.36. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.20.
Conclusion
To wrap up, the performance of Sally Beauty Holdings Inc (SBH) has been bad in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
