Best Buy (NYSE:BBY) Downgraded by Cfra to "Sell"

Key Points

• Cfra downgraded Best Buy to “sell” from “hold” and set an $87 price target, implying 17.26% downside from the stock’s current price.
• Analyst opinion is mixed: MarketBeat reports a consensus “hold” rating and an $87.33 average price target, with 1 strong-buy, 6 buy, 12 hold, and 3 sell ratings.
• Best Buy’s latest quarterly results exceeded expectations, with EPS of $1.47 versus $1.39 forecast and revenue of $9.78 billion versus $9.59 billion estimated.

Best Buy (NYSE:BBY - Get Free Report) was downgraded by research analysts at Cfra from a "hold" rating to a "sell" rating in a report released on Thursday, FinViz reports. They currently have a $87.00 price objective on the technology retailer's stock. Cfra's price target points to a potential downside of 17.26% from the stock's current price.

A number of other research analysts have also weighed in on BBY. Guggenheim raised their price target on shares of Best Buy from $90.00 to $95.00 and gave the company a "buy" rating in a research note on Friday, August 28th. DA Davidson upgraded Best Buy from a "hold" rating to a "strong-buy" rating in a research note on Thursday, September 24th. Piper Sandler increased their target price on Best Buy from $77.00 to $85.00 and gave the company a "neutral" rating in a report on Thursday, August 20th. Weiss Ratings downgraded Best Buy from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, October 27th. Finally, The Goldman Sachs Group lifted their price target on Best Buy from $62.00 to $71.00 and gave the stock a "sell" rating in a research note on Friday, August 28th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $87.33.

Best Buy Price Performance

Shares of BBY opened at $105.15 on Thursday. The business's 50-day moving average is $92.98 and its two-hundred day moving average is $76.68. The company has a market capitalization of $22.05 billion, a P/E ratio of 17.50, a P/E/G ratio of 2.60 and a beta of 1.20. Best Buy has a fifty-two week low of $55.10 and a fifty-two week high of $106.83. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.41 and a current ratio of 1.12.

Best Buy (NYSE:BBY - Get Free Report) last posted its earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping the consensus estimate of $1.39 by $0.08. Best Buy had a return on equity of 48.14% and a net margin of 3.01%. The firm had revenue of $9.78 billion for the quarter, compared to analyst estimates of $9.59 billion. During the same period last year, the company earned $1.28 earnings per share. Best Buy's revenue for the quarter was up 3.6% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Research analysts predict that Best Buy will post 6.81 earnings per share for the current year.

Insider Buying and Selling at Best Buy

In related news, EVP Kathleen Scarlett sold 116,062 shares of the firm's stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $92.15, for a total transaction of $10,695,113.30. Following the completion of the sale, the executive vice president directly owned 116,173 shares in the company, valued at approximately $10,705,341.95. This trade represents a 49.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Richard M. Schulze sold 300,000 shares of Best Buy stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $92.51, for a total transaction of $27,753,000.00. Additional details regarding this sale are available in the official SEC disclosure. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Best Buy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BBY. Asset Dedication LLC purchased a new stake in Best Buy in the 3rd quarter valued at about $27,000. Clark Wealth Partners purchased a new position in Best Buy during the third quarter worth about $29,000. Colonial Trust Co SC increased its position in shares of Best Buy by 4,062.5% during the third quarter. Colonial Trust Co SC now owns 333 shares of the technology retailer's stock valued at $29,000 after acquiring an additional 325 shares during the last quarter. Entrust Financial LLC acquired a new stake in shares of Best Buy during the third quarter valued at about $31,000. Finally, Westpac Banking Corp purchased a new stake in shares of Best Buy in the 3rd quarter valued at approximately $33,000. Hedge funds and other institutional investors own 80.96% of the company's stock.

About Best Buy

Best Buy is a retailer of consumer technology products and services. Its offerings include computers and mobile devices, televisions and home theater equipment, major appliances, and related accessories, sold through stores and digital channels. The company also provides technology support and installation services through Geek Squad, including help with device setup, repairs, and home technology systems. Best Buy serves customers in the United States and Canada. Founded in 1966 as Sound of Music, the company adopted the Best Buy name in 1983.

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