Best Buy (NYSE:BBY) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Best Buy from “hold” to “buy,” adding to mixed analyst sentiment. The broader consensus remains “hold,” with seven buys, thirteen holds, two sells, and an average price target of $85.40.
• Best Buy reported quarterly revenue of $9.78 billion and earnings of $1.47 per share, exceeding consensus estimates of $9.59 billion and $1.39 per share, respectively. Revenue increased 3.6% year over year.
• BBY shares opened at $82.34, within a 12-month range of $55.10 to $91.26, while institutional investors own approximately 80.96% of the stock. Insiders sold 500,000 shares worth about $39.1 million over the past three months.

Best Buy (NYSE:BBY - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

A number of other analysts also recently issued reports on BBY. Piper Sandler increased their target price on shares of Best Buy from $77.00 to $85.00 and gave the stock a "neutral" rating in a research report on Thursday, August 20th. Jefferies Financial Group cut shares of Best Buy from a "buy" rating to a "hold" rating and reduced their price target for the company from $89.00 to $85.00 in a research report on Wednesday, August 5th. Guggenheim boosted their price objective on shares of Best Buy from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Friday. Wells Fargo & Company increased their price objective on shares of Best Buy from $65.00 to $85.00 and gave the stock an "equal weight" rating in a research report on Tuesday, August 11th. Finally, Truist Financial set a $100.00 target price on shares of Best Buy in a research note on Thursday. Seven analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $85.40.

Best Buy Price Performance

BBY stock opened at $82.34 on Friday. The company has a market cap of $17.35 billion, a PE ratio of 13.70, a price-to-earnings-growth ratio of 2.36 and a beta of 1.29. The company has a current ratio of 1.12, a quick ratio of 0.40 and a debt-to-equity ratio of 0.36. The stock has a 50-day moving average price of $83.16 and a two-hundred day moving average price of $71.34. Best Buy has a 12-month low of $55.10 and a 12-month high of $91.26.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping analysts' consensus estimates of $1.39 by $0.08. The company had revenue of $9.78 billion for the quarter, compared to the consensus estimate of $9.59 billion. Best Buy had a return on equity of 48.14% and a net margin of 3.01%.The company's quarterly revenue was up 3.6% compared to the same quarter last year. During the same period last year, the business posted $1.28 EPS. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, research analysts predict that Best Buy will post 6.7 EPS for the current year.

Insider Activity at Best Buy

In other news, Chairman Richard M. Schulze sold 224,705 shares of the firm's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the completion of the sale, the chairman owned 10,430,936 shares of the company's stock, valued at approximately $814,656,101.60. This trade represents a 2.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last three months, insiders sold 500,000 shares of company stock worth $39,065,226. Corporate insiders own 0.50% of the company's stock.

Institutional Trading of Best Buy

Institutional investors have recently added to or reduced their stakes in the stock. Woodline Partners LP increased its position in shares of Best Buy by 40.1% in the 1st quarter. Woodline Partners LP now owns 16,436 shares of the technology retailer's stock worth $1,210,000 after purchasing an additional 4,701 shares during the last quarter. Daiwa Securities Group Inc. lifted its position in shares of Best Buy by 4.4% during the second quarter. Daiwa Securities Group Inc. now owns 29,560 shares of the technology retailer's stock worth $1,984,000 after purchasing an additional 1,234 shares during the last quarter. Investment Management Corp of Ontario grew its stake in Best Buy by 127.7% in the second quarter. Investment Management Corp of Ontario now owns 12,997 shares of the technology retailer's stock worth $872,000 after purchasing an additional 7,288 shares in the last quarter. Ieq Capital LLC grew its stake in Best Buy by 155.4% in the second quarter. Ieq Capital LLC now owns 160,568 shares of the technology retailer's stock worth $10,779,000 after purchasing an additional 97,688 shares in the last quarter. Finally, Alliancebernstein L.P. grew its stake in Best Buy by 32.0% in the second quarter. Alliancebernstein L.P. now owns 313,584 shares of the technology retailer's stock worth $21,051,000 after purchasing an additional 76,102 shares in the last quarter. 80.96% of the stock is owned by institutional investors and hedge funds.

Best Buy News Summary

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Quarterly results exceeded expectations. Best Buy reported Q2 FY27 revenue of $9.78 billion, up 3.6% year over year and above the $9.59 billion consensus estimate. Adjusted earnings of $1.47 per share also topped the $1.39 consensus, while comparable sales rose 4.1%. Best Buy Reports Second Quarter Results
• Positive Sentiment: Best Buy raised its full-year outlook. The company now expects adjusted fiscal 2027 earnings of $6.70 to $6.90 per share, up from $6.30 to $6.60 previously, and revenue of $42.3 billion to $42.8 billion. The improved forecast reflects strength in computing and steady demand for technology upgrades and replacements. Best Buy raises annual sales forecast on steady electronics demand
• Positive Sentiment: Analyst sentiment improved. Guggenheim and DA Davidson each raised their BBY price target from $90 to $95 and assigned a “buy” rating, implying roughly 15% upside from the referenced price.
• Positive Sentiment: Shareholder returns remain attractive. Best Buy declared a quarterly dividend of $0.96 per share, equivalent to an annualized yield of approximately 4.7% at the referenced price.
• Neutral Sentiment: Growth initiatives could support the longer-term retail recovery. Best Buy is expanding its omnichannel strategy, including the Ask Blue conversational AI assistant and smaller-format stores, while digital-led sales growth was highlighted during the earnings call. Best Buy Expands Omnichannel Footprint With OpenAI Integration and Smaller-Format Stores
• Negative Sentiment: The negative market reaction likely reflects high expectations and lingering risks. Although results beat estimates, the outlook increase was relatively modest versus consensus, international revenue declined, and investors remain cautious about discretionary spending. Analysts are also described as conflicted on BBY, suggesting uncertainty about how durable the recovery will be. Analysts Conflicted on These Consumer Cyclical Names

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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