Best Buy (NYSE:BBY) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Best Buy from “Buy” to “Hold,” aligning with the broader analyst consensus, which includes 12 Hold ratings and an average price target of $85.65.
• Best Buy’s latest quarterly results exceeded expectations, with adjusted EPS of $1.47 versus $1.39 forecast and revenue of $9.78 billion, up 3.6% year over year.
• Insiders recently sold significant shares, including executive Kathleen Scarlett’s $10.7 million sale and Chairman Richard Schulze’s $27.8 million sale; institutional investors own 80.96% of the stock.

Best Buy (NYSE:BBY - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

BBY has been the subject of several other research reports. Citigroup boosted their price target on shares of Best Buy from $79.00 to $88.00 and gave the company a "neutral" rating in a report on Thursday, August 13th. Telsey Advisory Group lifted their target price on Best Buy from $90.00 to $95.00 and gave the stock an "outperform" rating in a report on Tuesday, August 4th. Morgan Stanley boosted their target price on Best Buy from $80.00 to $90.00 and gave the company an "equal weight" rating in a research note on Friday, August 28th. Guggenheim increased their price target on Best Buy from $90.00 to $95.00 and gave the stock a "buy" rating in a report on Friday, August 28th. Finally, Wedbush reaffirmed a "buy" rating on shares of Best Buy in a research report on Monday, August 24th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $85.65.

Best Buy Stock Performance

Shares of NYSE:BBY opened at $87.83 on Friday. The firm's 50 day simple moving average is $87.72 and its 200 day simple moving average is $75.70. Best Buy has a fifty-two week low of $55.10 and a fifty-two week high of $96.53. The company has a market capitalization of $18.42 billion, a price-to-earnings ratio of 14.61, a P/E/G ratio of 2.19 and a beta of 1.26. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.12 and a quick ratio of 0.41.

Best Buy (NYSE:BBY - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.39 by $0.08. The firm had revenue of $9.78 billion during the quarter, compared to analysts' expectations of $9.59 billion. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The business's revenue for the quarter was up 3.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.28 earnings per share. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, sell-side analysts forecast that Best Buy will post 6.82 earnings per share for the current year.

Insider Transactions at Best Buy

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

Hedge Funds Weigh In On Best Buy

A number of large investors have recently bought and sold shares of the company. BlackRock Inc. bought a new position in Best Buy in the second quarter valued at $1,932,812,000. Bank of New York Mellon Corp bought a new stake in Best Buy during the 2nd quarter worth about $174,893,000. Deutsche Bank AG bought a new stake in Best Buy during the 2nd quarter worth about $116,003,000. Legal & General Group Plc acquired a new position in shares of Best Buy during the 2nd quarter worth about $83,427,000. Finally, Hsbc Holdings PLC acquired a new position in shares of Best Buy during the 2nd quarter worth about $79,627,000. Institutional investors and hedge funds own 80.96% of the company's stock.

About Best Buy

Best Buy Co, Inc NYSE: BBY is a specialty retailer of technology products and services. The company sells consumer electronics, computers and tablets, mobile phones, appliances, entertainment products, smart-home devices, gaming equipment and related accessories through its stores and digital platforms.

Best Buy also provides technology services through Geek Squad, including product installation, setup, repair, troubleshooting and technical support. Its operations include retail stores, e-commerce, delivery and fulfillment services, as well as membership and protection offerings.

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