Best Buy Co., Inc. (NYSE:BBY) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Best Buy, with 15 hold, five buy and two sell ratings among 22 analysts. The average 12-month price target is $79.50.
• Best Buy exceeded quarterly expectations, reporting $1.28 in EPS versus the $1.23 consensus and $8.94 billion in revenue, up 1.9% year over year.
• The company paid a quarterly dividend of $0.96 per share, equivalent to a 4.5% annualized yield; meanwhile, insiders sold roughly 1 million shares worth $77.3 million over the past 90 days.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) has been given an average recommendation of "Hold" by the twenty-two analysts that are currently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, fifteen have given a hold rating and five have issued a buy rating on the company. The average 12-month target price among brokers that have covered the stock in the last year is $79.50.

A number of research firms recently weighed in on BBY. Wall Street Zen downgraded Best Buy from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. UBS Group reiterated a "neutral" rating and issued a $86.00 price objective (up from $85.00) on shares of Best Buy in a research report on Friday, May 29th. Jefferies Financial Group raised their target price on Best Buy from $83.00 to $89.00 and gave the company a "buy" rating in a report on Thursday, May 28th. Weiss Ratings upgraded shares of Best Buy from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, June 11th. Finally, Guggenheim reaffirmed a "buy" rating and set a $90.00 price target on shares of Best Buy in a research note on Friday, May 29th.

Best Buy Trading Down 0.2%

NYSE BBY opened at $85.26 on Monday. The company has a quick ratio of 0.40, a current ratio of 1.12 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $17.97 billion, a P/E ratio of 15.79, a P/E/G ratio of 2.27 and a beta of 1.30. Best Buy has a 52-week low of $55.10 and a 52-week high of $87.35. The firm has a 50-day moving average price of $75.59 and a 200 day moving average price of $68.18.

Best Buy (NYSE:BBY - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The technology retailer reported $1.28 earnings per share for the quarter, beating analysts' consensus estimates of $1.23 by $0.05. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The company had revenue of $8.94 billion for the quarter, compared to analyst estimates of $8.82 billion. During the same quarter in the previous year, the company earned $1.15 EPS. The firm's revenue for the quarter was up 1.9% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Equities research analysts expect that Best Buy will post 6.56 EPS for the current year.

Best Buy Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th were given a dividend of $0.96 per share. This represents a $3.84 annualized dividend and a yield of 4.5%. The ex-dividend date was Thursday, June 18th. Best Buy's dividend payout ratio is presently 71.11%.

Insider Transactions at Best Buy

In other news, CAO Mathew Watson sold 1,784 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $73.80, for a total transaction of $131,659.20. Following the sale, the chief accounting officer owned 21,630 shares of the company's stock, valued at $1,596,294. The trade was a 7.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Richard M. Schulze sold 500,350 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $76.12, for a total value of $38,086,642.00. Following the completion of the sale, the chairman owned 10,930,586 shares in the company, valued at approximately $832,036,206.32. This represents a 4.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,002,134 shares of company stock valued at $77,283,527. 0.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Best Buy

A number of institutional investors have recently bought and sold shares of BBY. Concurrent Investment Advisors LLC lifted its holdings in shares of Best Buy by 100.6% in the fourth quarter. Concurrent Investment Advisors LLC now owns 70,280 shares of the technology retailer's stock valued at $4,704,000 after purchasing an additional 35,239 shares in the last quarter. PFA Pension Forsikringsaktieselskab purchased a new position in shares of Best Buy during the 4th quarter worth approximately $1,741,000. VIRGINIA RETIREMENT SYSTEMS ET Al increased its stake in shares of Best Buy by 42.9% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 225,000 shares of the technology retailer's stock worth $15,059,000 after purchasing an additional 67,600 shares in the last quarter. Oxbow Advisors LLC acquired a new position in shares of Best Buy during the 4th quarter worth approximately $6,295,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of Best Buy by 8.8% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 478,965 shares of the technology retailer's stock worth $33,180,000 after purchasing an additional 38,739 shares during the last quarter. 80.96% of the stock is currently owned by hedge funds and other institutional investors.

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.

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