Why Is SALLY BEAUTY HLDGS I (SBH) Stock Down Today?

Sally Beauty Holdings (SBH) shares fell 6.43% to $19.22 on profit-taking following a strong earnings report. The primary driver was a reaction to fourth quarter adjusted earnings per share of $0.62, which exceeded estimates, alongside fiscal 2027 adjusted EPS guidance of $2.20 to $2.30 that reflects ongoing cost and supply pressures.

What Happened

The stock declined despite a wave of positive analyst activity in the last 36 hours. Canaccord Genuity maintained its Buy rating and raised its price target to $25 from $20. Raymond James raised its price target to $23 from $18, citing growth steps. Morgan Stanley maintained its Underweight rating but raised its price target to $19 from $13. Jefferies also raised its price target following the Q4 beat. The company reported fourth quarter and full year 2026 financial results, with the guidance suggesting a cautious outlook for the coming year due to macroeconomic headwinds.

What The Data Shows

The pullback follows a sharp recent rally. Over the last eight sessions, the stock moved up 13.2%, rising from $18.15 to $20.54 before the current drop. The current price of $19.22 sits within the 52-week range of $11.54 to $21.06. Fundamentals show a market cap of $1.8 billion and a P/E ratio of 10.7. Revenue has grown 1.1% on a trailing twelve month basis, and the net margin stands at 5.2%. The stock has a beta of 1.14. Notably, the stock printed 11 fresh 52-week lows on November 11, 2026, indicating a period of significant volatility prior to the recent upward trend.

What To Watch

Investors will monitor how the stock digests the new fiscal 2027 guidance. The divergence between the raised price targets from Canaccord Genuity and Raymond James and the more conservative view from Morgan Stanley suggests continued debate over the company's valuation and growth trajectory.