Handle With Care: Sally Beauty Holdings Inc. (NYSE: SBH)

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    ArrowMark Colorado Holdings LLC recently announced the acquisition of new stake in Sally Beauty Holdings Inc. (NYSE:SBH). The institutional investor has increased its shareholding in the Consumer Cyclical company by 34.37% to 20.6 million shares with purchase of 5.27 million shares. This fresh investment now brings its stake to 18.25% valued currently at $258.16 million. In addition, Fidelity Management & Research Co… raised its holdings by 1.48 million to 16.44 million shares. And Atlanta Capital Management Co. LL… has lifted its position by 2.26% or 0.29 million shares – to 12.94 million shares.

    With over 1.54 million Sally Beauty Holdings Inc. (SBH) shares trading Friday and a closing price of $12.96 on the day, the dollar volume was approximately $19.94 million. The shares have shown a negative weekly performance of -8.09% and its price on 07/24/20 lost nearly -5.33%. Currently, there are 114.82M common shares owned by the public and among those 107.71M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for SBH have a consensus price objective of $14.44. The analysts have set the share’s price value over the next 12 months at a high of $19.00 and a low of $9.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Sally Beauty Holdings Inc. stock is 3.10 for the next 12 months. The average price target is 10.25% above its last price level and an upside to the estimated low will see the stock lose -44.0% over that period. But an upside of 31.79% will see the stock hit the forecast high price target while mean target price for the stock is $14.75.

    Insiders at the company have transacted a total of 54 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 42 of these insider trades were purchases, accounting for 366,988 shares. Insider sales of the common stock occurred on 12 occasions, with total insider shares sold totaling 50,127 shares.

    The top 3 mutual fund holders in Sally Beauty Holdings Inc. are Eaton Vance Atlanta Capital SMID, Fidelity Series Intrinsic Opportu, and Vanguard Explorer Fund. Eaton Vance Atlanta Capital SMID owns 9.37 million shares of the company’s stock, all valued at over $117.36 million. Fidelity Series Intrinsic Opportu bought 0.2 million shares to see its total holdings expand to 6.2 million shares valued at over $77.69 million and representing 5.49% of the shares outstanding. Vanguard Explorer Fund bought 1.28 million shares to bring its total holdings to over 4.84 million shares at a value of $60.63 million. Vanguard Explorer Fund now owns shares totaling to 4.29% of the shares outstanding.

    Shares of Sally Beauty Holdings Inc. (NYSE: SBH) opened at $13.63, down -$0.06 from a prior closing price of $13.69. However, the script later closed the day at $12.96, down -5.33%. The company’s stock has a 5-day price change of -8.09% and 42.42% over the past three months. SBH shares are trading -28.99% year to date (YTD), with the 12-month market performance up to 6.75% higher. It has a 12-month low price of $6.28 and touched a high of $21.98 over the same period. Currently, 1.54 million shares have been traded, compared to an average intraday trading volume of 1.77 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.32%, -0.01%, and -6.25% respectively.

    Institutional ownership of Sally Beauty Holdings Inc. (NYSE: SBH) 114.82M shares outstanding. Mutual fund holders own 52.91%, while other institutional holders and individual stakeholders account for 78.45% and 40.76% respectively.

    It has a market capitalization of $1.49B and a beta (3y monthly) value of 1.30. The stock’s trailing 12-month PE ratio is 7.44, while the earnings-per-share (ttm) stands at $1.74. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.42% over the week and 4.95% over the month.

    Analysts forecast that Sally Beauty Holdings Inc. (SBH) will achieve an EPS of -$0.03 for the current quarter, $0.48 for the next quarter and $1.97 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.33 while analysts give the company a high EPS estimate of $0.36. Comparatively, EPS for the current quarter was $0.6 a year ago. Earnings per share for the fiscal year are expected to increase by 19.20%, and 82.67% over the next financial year. EPS should shrink at an annualized rate of -3.90% over the next five years, compared to 8.20% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Sally Beauty Holdings Inc. (SBH) as a “Hold” at a consensus score of 3.10. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 5 of the 9 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the SBH, a number of firms have released research notes about the stock. Oppenheimer stated their Outperform rating for the stock in a research note on June 04, 2020, with the firm’s price target at $19. DA Davidson coverage for the Sally Beauty Holdings Inc. (SBH) stock in a research note released on January 21, 2020 offered a Neutral rating with a price target of $15. DA Davidson was of a view on November 14, 2019 that the stock is Underperform, while Jefferies gave the stock Hold rating on July 12, 2019, issuing a price target of $14- $12. BofA/Merrill on their part issued Underperform rating on June 25, 2019.

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