Best Buy (NYSE:BBY) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised its Best Buy price target from $88 to $102 but maintained a neutral rating; the new target implies 2.43% upside from the prior close.
• Analyst sentiment is mostly cautious: Best Buy has a consensus “Hold” rating and average price target of $87.35, below its Friday closing price of $99.58.
• Best Buy beat quarterly expectations, reporting earnings of $1.47 per share versus $1.39 expected and revenue of $9.78 billion versus $9.59 billion; revenue rose 3.6% year over year.

Best Buy (NYSE:BBY - Get Free Report) had its price objective upped by equities researchers at Citigroup from $88.00 to $102.00 in a research note issued on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the technology retailer's stock. Citigroup's price target indicates a potential upside of 2.43% from the stock's previous close.

Other analysts also recently issued research reports about the stock. UBS Group reaffirmed a "neutral" rating and set a $90.00 target price (up from $86.00) on shares of Best Buy in a report on Friday, August 28th. Evercore set a $100.00 price target on shares of Best Buy in a report on Tuesday, October 27th. Wedbush reissued a "buy" rating on shares of Best Buy in a report on Monday, August 24th. Truist Financial set a $100.00 price objective on shares of Best Buy in a research report on Thursday, August 27th. Finally, Guggenheim boosted their price objective on Best Buy from $90.00 to $95.00 and gave the stock a "buy" rating in a report on Friday, August 28th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Best Buy has an average rating of "Hold" and a consensus target price of $87.35.

Best Buy Stock Performance

Shares of BBY stock traded up $0.18 on Friday, reaching $99.58. The stock had a trading volume of 1,781,928 shares, compared to its average volume of 4,045,548. Best Buy has a 12 month low of $55.10 and a 12 month high of $103.54. The firm has a market capitalization of $20.89 billion, a price-to-earnings ratio of 16.57, a P/E/G ratio of 2.53 and a beta of 1.20. The firm's 50-day moving average is $91.25 and its two-hundred day moving average is $75.93. The company has a quick ratio of 0.41, a current ratio of 1.12 and a debt-to-equity ratio of 0.36.

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

Insider Buying and Selling

In other news, EVP Kathleen Scarlett sold 116,062 shares of Best Buy stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $92.15, for a total value 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. The trade was a 49.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Richard M. Schulze sold 300,000 shares of the business's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $92.51, for a total value of $27,753,000.00. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Best Buy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BBY. BlackRock Inc. bought a new stake in Best Buy in the 2nd quarter valued at about $1,932,812,000. Bank of New York Mellon Corp bought a new stake in Best Buy during the second quarter worth $174,893,000. Deutsche Bank AG purchased a new stake in Best Buy in the 2nd quarter valued at $116,003,000. KBC Group NV raised its position in Best Buy by 50.5% in the 1st quarter. KBC Group NV now owns 1,584,803 shares of the technology retailer's stock valued at $101,745,000 after buying an additional 531,998 shares during the last quarter. Finally, Renaissance Technologies LLC raised its position in Best Buy by 113.4% in the 1st quarter. Renaissance Technologies LLC now owns 1,449,439 shares of the technology retailer's stock valued at $93,054,000 after buying an additional 770,339 shares during the last quarter. 80.96% of the stock is owned by institutional investors and hedge funds.

About Best Buy

Best Buy Co, Inc is a specialty retailer of technology products and services headquartered in Richfield, Minnesota. The company sells consumer electronics, computing and mobile products, entertainment products, appliances, furniture, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology-related services, including product installation, repair, technical support, delivery, and in-home consultation. Its services are offered through brands and operations such as Geek Squad, while the company also provides membership and protection programs designed to support customers after purchase.

The company serves customers primarily in the United States and Canada.

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