Sally Beauty Holdings, Inc. (NYSE:SBH) Sees Large Increase in Short Interest

Sally Beauty Holdings, Inc. (NYSE:SBH) was the recipient of a large increase in short interest in the month of August. As of August 31st, there was short interest totalling 25,743,600 shares, an increase of 11.9% from the July 31st total of 23,014,300 shares. Approximately 21.5% of the company’s shares are sold short. Based on an average daily volume of 2,230,000 shares, the short-interest ratio is presently 11.5 days.

NYSE:SBH traded down $0.04 during trading hours on Friday, reaching $14.59. 1,662,184 shares of the stock were exchanged, compared to its average volume of 2,006,825. The firm has a 50 day simple moving average of $12.84 and a 200-day simple moving average of $15.26. Sally Beauty has a 52 week low of $11.46 and a 52 week high of $23.61. The stock has a market capitalization of $1.76 billion, a P/E ratio of 6.68, a P/E/G ratio of 2.20 and a beta of 0.44.

Sally Beauty (NYSE:SBH) last issued its earnings results on Wednesday, July 31st. The specialty retailer reported $0.60 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.58 by $0.02. Sally Beauty had a negative return on equity of 151.31% and a net margin of 6.65%. The business had revenue of $975.20 million for the quarter, compared to analysts’ expectations of $986.27 million. During the same period in the previous year, the firm posted $0.60 EPS. The company’s quarterly revenue was down 2.1% on a year-over-year basis. Research analysts predict that Sally Beauty will post 2.21 earnings per share for the current year.

In other Sally Beauty news, Director John A. Miller acquired 40,500 shares of the stock in a transaction that occurred on Friday, August 30th. The stock was bought at an average cost of $12.21 per share, with a total value of $494,505.00. Following the completion of the purchase, the director now directly owns 51,873 shares in the company, valued at $633,369.33. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Edward W. Rabin acquired 7,000 shares of the stock in a transaction that occurred on Friday, August 2nd. The stock was acquired at an average cost of $13.25 per share, with a total value of $92,750.00. Following the completion of the purchase, the director now owns 19,732 shares of the company’s stock, valued at $261,449. The disclosure for this purchase can be found here. Over the last ninety days, insiders bought 58,500 shares of company stock valued at $718,425. Corporate insiders own 1.04% of the company’s stock.

Hedge funds have recently modified their holdings of the company. Advisory Services Network LLC raised its stake in shares of Sally Beauty by 42.3% during the second quarter. Advisory Services Network LLC now owns 2,396 shares of the specialty retailer’s stock worth $32,000 after purchasing an additional 712 shares during the last quarter. Royce & Associates LP grew its holdings in Sally Beauty by 40.6% in the first quarter. Royce & Associates LP now owns 2,510 shares of the specialty retailer’s stock valued at $46,000 after purchasing an additional 725 shares during the last quarter. Jane Street Group LLC acquired a new stake in Sally Beauty in the second quarter valued at $151,000. CWM Advisors LLC acquired a new stake in Sally Beauty in the second quarter valued at $153,000. Finally, Teza Capital Management LLC acquired a new stake in Sally Beauty in the second quarter valued at $167,000.

Several brokerages have recently issued reports on SBH. Zacks Investment Research upgraded Sally Beauty from a “sell” rating to a “hold” rating in a research report on Tuesday, May 21st. Jefferies Financial Group raised Sally Beauty from an “underperform” rating to a “hold” rating and dropped their target price for the company from $14.00 to $12.00 in a report on Friday, July 12th. They noted that the move was a valuation call. Wells Fargo & Co reaffirmed a “hold” rating on shares of Sally Beauty in a report on Tuesday, June 25th. DA Davidson dropped their price objective on Sally Beauty to $12.50 and set a “neutral” rating on the stock in a report on Wednesday, September 4th. Finally, Bank of America reaffirmed an “underperform” rating and set a $13.00 price objective (down previously from $15.00) on shares of Sally Beauty in a report on Tuesday, June 25th. Three research analysts have rated the stock with a sell rating and five have issued a hold rating to the company’s stock. Sally Beauty has an average rating of “Hold” and an average price target of $15.50.

Sally Beauty Company Profile

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

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