Best Buy (NYSE:BBY) Stock Rating Raised to "Strong-Buy" at DA Davidson

Key Points

• DA Davidson upgraded Best Buy from “hold” to “strong buy,” although the broader analyst consensus remains “hold” with an average price target of $85.40.
• Best Buy shares opened at $91.07, near their 12-month high of $96.53. The retailer recently exceeded quarterly expectations, reporting $1.47 in EPS versus $1.39 forecast and $9.78 billion in revenue.
• Insiders recently sold significant holdings, including 116,062 shares by EVP Kathleen Scarlett and 300,000 shares by Chairman Richard Schulze; institutional investors own approximately 80.96% of the stock.

Best Buy (NYSE:BBY - Get Free Report) was upgraded by stock analysts at DA Davidson from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Thursday, Zacks reports.

BBY has been the topic of a number of other research reports. Evercore increased their target price on shares of Best Buy from $65.00 to $85.00 in a research report on Friday, May 29th. Morgan Stanley raised their price objective on Best Buy from $80.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Friday, August 28th. Wall Street Zen raised Best Buy from a "hold" rating to a "buy" rating in a report on Saturday, August 29th. JPMorgan Chase & Co. upped their target price on Best Buy from $76.00 to $84.00 and gave the company a "neutral" rating in a research report on Friday, May 29th. Finally, Barclays raised their price target on Best Buy from $77.00 to $85.00 and gave the stock a "buy" rating in a research report on Friday, August 28th. One investment 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 given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $85.40.

Best Buy Trading Up 0.3%

Shares of NYSE:BBY opened at $91.07 on Thursday. Best Buy has a 12-month low of $55.10 and a 12-month high of $96.53. The business has a 50 day moving average of $87.31 and a 200-day moving average of $74.73. The company has a quick ratio of 0.41, a current ratio of 1.12 and a debt-to-equity ratio of 0.36. The stock has a market cap of $19.10 billion, a PE ratio of 15.15, a P/E/G ratio of 2.37 and a beta of 1.28.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The technology retailer reported $1.47 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.08. The business had revenue of $9.78 billion during the quarter, compared to analysts' expectations of $9.59 billion. Best Buy had a return on equity of 48.14% and a net margin of 3.01%.The firm's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period last year, the firm posted $1.28 EPS. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, equities research analysts forecast that Best Buy will post 6.82 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 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 directly owned 116,173 shares of the company's stock, valued at $10,705,341.95. This trade represents a 49.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Chairman Richard M. Schulze sold 300,000 shares of Best Buy 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. The disclosure for this sale is available in the SEC filing. Company insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On Best Buy

Several hedge funds have recently modified their holdings of the company. QRG Capital Management Inc. grew its position in shares of Best Buy by 15.9% in the 2nd quarter. QRG Capital Management Inc. now owns 7,305 shares of the technology retailer's stock valued at $554,000 after buying an additional 1,001 shares during the last quarter. Envestnet Portfolio Solutions Inc. raised its position in shares of Best Buy by 4.4% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 21,987 shares of the technology retailer's stock worth $1,668,000 after acquiring an additional 924 shares during the last quarter. Andra AP fonden bought a new position in shares of Best Buy during the second quarter worth about $1,322,000. Sequoia Financial Advisors LLC lifted its stake in shares of Best Buy by 18.1% in the second quarter. Sequoia Financial Advisors LLC now owns 12,049 shares of the technology retailer's stock worth $914,000 after acquiring an additional 1,845 shares during the period. Finally, Cidel Asset Management Inc. lifted its stake in shares of Best Buy by 7.7% in the second quarter. Cidel Asset Management Inc. now owns 6,502 shares of the technology retailer's stock worth $493,000 after acquiring an additional 466 shares during the period. Institutional investors and hedge funds own 80.96% of the company's stock.

About Best Buy

Best Buy Co, Inc is a specialty retailer of technology products and services operating under the Best Buy brand. The company sells consumer electronics, computers, mobile phones, appliances, entertainment products, smart-home equipment, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology support, installation, repair, and consultation services through Geek Squad. Its offerings include assistance with device setup, home theater installation, computer and appliance support, and technology solutions for consumers and small businesses.

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