Zacks Investment Research lowered shares of Sally Beauty (NYSE:SBH) from a hold rating to a sell rating in a report released on Thursday morning.

According to Zacks, “Shares of Sally Beauty have not only declined in the past three months but also underperformed the industry. This may be attributed to dismal fiscal 2018 view following the company’s third-quarter results, wherein top line came in line but bottom line missed the consensus mark. Further, soft comps performance also hurt investor sentiment. Moreover, contraction in gross margin continues to pose a threat as management expects margins to decline further. Nevertheless, Sally Beauty is adopting several initiatives to put itself on growth trajectory. It is on track with the transformation plan aimed at reducing cost and focusing on the core categories — hair color and hair care. As a result, management continues to expect double-digit growth in adjusted earnings for fiscal 2018. Also, Sally beauty has been undertaking acquisitions, the latest being H. Chalut Ltée that will help expand its reach to Quebec.”

A number of other brokerages also recently issued reports on SBH. Morgan Stanley reduced their price objective on shares of Sally Beauty from $15.50 to $13.50 and set an underweight rating on the stock in a research note on Friday, May 4th. beau lowered shares of Sally Beauty from a neutral rating to an underperform rating and dropped their price objective for the company from $17.00 to $15.00 in a report on Tuesday, July 17th. Bank of America lowered shares of Sally Beauty from a neutral rating to an underperform rating and dropped their price objective for the company from $17.00 to $15.00 in a report on Monday, July 16th. Robert W. Baird lowered shares of Sally Beauty from an outperform rating to a neutral rating and dropped their price objective for the company from $21.00 to $17.00 in a report on Friday, May 4th. Finally, Cowen reiterated a market perform rating on shares of Sally Beauty in a report on Wednesday, June 20th. They noted that the move was a valuation call. Six research analysts have rated the stock with a sell rating and nine have given a hold rating to the stock. Sally Beauty has a consensus rating of Hold and an average price target of $15.73.

Shares of Sally Beauty stock traded down $0.15 during midday trading on Thursday, reaching $14.35. 1,298,704 shares of the company’s stock traded hands, compared to its average volume of 2,398,871. The company has a market capitalization of $1.74 billion, a P/E ratio of 7.97, a P/E/G ratio of 1.20 and a beta of 0.34. Sally Beauty has a 52 week low of $13.72 and a 52 week high of $20.62. The company has a current ratio of 2.12, a quick ratio of 0.39 and a debt-to-equity ratio of -5.42.

Sally Beauty (NYSE:SBH) last announced its earnings results on Thursday, August 2nd. The specialty retailer reported $0.60 EPS for the quarter, hitting the consensus estimate of $0.60. Sally Beauty had a net margin of 6.05% and a negative return on equity of 76.04%. The firm had revenue of $996.28 million for the quarter, compared to the consensus estimate of $995.30 million. During the same quarter last year, the firm posted $0.52 EPS. The business’s quarterly revenue was down .2% on a year-over-year basis. equities research analysts predict that Sally Beauty will post 2.13 earnings per share for the current year.

In related news, CFO Aaron E. Alt acquired 4,000 shares of the stock in a transaction dated Monday, August 6th. The stock was bought at an average price of $14.07 per share, for a total transaction of $56,280.00. Following the purchase, the chief financial officer now directly owns 69,619 shares of the company’s stock, valued at approximately $979,539.33. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Aaron E. Alt acquired 3,500 shares of the stock in a transaction dated Tuesday, May 22nd. The stock was bought at an average price of $15.10 per share, with a total value of $52,850.00. Following the purchase, the chief financial officer now directly owns 3,500 shares in the company, valued at $52,850. The disclosure for this purchase can be found here. 0.97% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. FMR LLC grew its position in Sally Beauty by 17.9% in the 2nd quarter. FMR LLC now owns 15,075,063 shares of the specialty retailer’s stock valued at $241,654,000 after purchasing an additional 2,287,521 shares during the period. BlackRock Inc. grew its position in Sally Beauty by 29.5% in the 2nd quarter. BlackRock Inc. now owns 14,101,739 shares of the specialty retailer’s stock valued at $226,051,000 after purchasing an additional 3,215,986 shares during the period. Atlanta Capital Management Co. L L C grew its position in Sally Beauty by 0.3% in the 1st quarter. Atlanta Capital Management Co. L L C now owns 13,107,987 shares of the specialty retailer’s stock valued at $215,626,000 after purchasing an additional 39,726 shares during the period. Champlain Investment Partners LLC grew its position in Sally Beauty by 3.6% in the 1st quarter. Champlain Investment Partners LLC now owns 3,860,690 shares of the specialty retailer’s stock valued at $63,508,000 after purchasing an additional 135,555 shares during the period. Finally, LSV Asset Management grew its position in Sally Beauty by 3.5% in the 2nd quarter. LSV Asset Management now owns 2,919,045 shares of the specialty retailer’s stock valued at $46,792,000 after purchasing an additional 97,545 shares during the period.

About Sally Beauty

Sally Beauty Holdings, Inc, together with its subsidiaries, 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, beauty sundries, and styling tools for retail customers and salon professionals.

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