Sally Beauty Holdings Inc (SBH) Shares Decline Despite Market Challenges

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Sally Beauty Holdings Inc (NYSE: SBH)’s stock price has dropped by -0.74 in relation to previous closing price of 9.51. Nevertheless, the company has seen a gain of 8.88% in its stock price over the last five trading days. prnewswire.com reported 2025-03-05 that Modern and collaborative workspace delivers enhanced environment for associates. DENTON, Texas, March 5, 2025 /PRNewswire/ — Sally Beauty Holdings, Inc. (NYSE: SBH) (“the Company”), the leader in professional hair color, today announced plans to relocate its corporate headquarters from Denton, Texas, to Plano, Texas, maintaining its presence within the greater Dallas-Fort Worth area.

Is It Worth Investing in Sally Beauty Holdings Inc (NYSE: SBH) Right Now?

Sally Beauty Holdings Inc (NYSE: SBH) has a higher price-to-earnings ratio of 5.66x compared to its average ratio. SBH has 36-month beta value of 1.32. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 1 as “overweight,” 3 as “hold,” and 1 as “sell.”

The public float for SBH is 100.15M, and currently, short sellers hold a 10.87% ratio of that float. The average trading volume of SBH on March 12, 2025 was 2.37M shares.

SBH’s Market Performance

SBH’s stock has seen a 8.88% increase for the week, with a -3.28% drop in the past month and a -26.88% fall in the past quarter. The volatility ratio for the week is 4.16%, and the volatility levels for the past 30 days are at 5.19% for Sally Beauty Holdings Inc. The simple moving average for the past 20 days is 2.38% for SBH’s stock, with a -19.11% simple moving average for the past 200 days.

Analysts’ Opinion of SBH

Many brokerage firms have already submitted their reports for SBH stocks, with Canaccord Genuity repeating the rating for SBH by listing it as a “Buy.” The predicted price for SBH in the upcoming period, according to Canaccord Genuity is $14 based on the research report published on January 16, 2025 of the current year 2025.

TD Cowen, on the other hand, stated in their research note that they expect to see SBH reach a price target of $16, previously predicting the price at $14. The rating they have provided for SBH stocks is “Buy” according to the report published on November 25th, 2024.

SBH Trading at -7.28% 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 -36.17% of loss for the given period.

Volatility was left at 5.19%, however, over the last 30 days, the volatility rate increased by 4.16%, as shares sank -1.36% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -16.09% lower at present.

During the last 5 trading sessions, SBH rose by +8.88%, which changed the moving average for the period of 200-days by -12.27% in comparison to the 20-day moving average, which settled at $9.22. In addition, Sally Beauty Holdings Inc saw -9.67% 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 Mary Beth Edwards, who proposed sale 26,592 shares at the price of $9.50 back on Feb 13 ’25. After this action, Mary Beth Edwards now owns shares of Sally Beauty Holdings Inc, valued at $252,624 using the latest closing price.

Sherman Scott C, the of Sally Beauty Holdings Inc, sale 13,500 shares at $14.49 during a trade that took place back on Nov 25 ’24, which means that Sherman Scott C is holding 42,431 shares at $195,615 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
  • 0.5 for the gross margin

The net margin for Sally Beauty Holdings Inc stands at 0.05. The total capital return value is set at 0.15. Equity return is now at value 29.39, with 6.47 for asset returns.

Based on Sally Beauty Holdings Inc (SBH), the company’s capital structure generated 0.7 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 2.36. The interest coverage ratio of the stock is 4.11.

Currently, EBITDA for the company is 282.73 million with net debt to EBITDA at 3.65. When we switch over and look at the enterprise to sales, we see a ratio of 0.65. The receivables turnover for the company is 44.0for trailing twelve months and the total asset turnover is 1.37. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.27.

Conclusion

To put it simply, Sally Beauty Holdings Inc (SBH) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. 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.

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