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

Key Points

• Best Buy has a consensus rating of "Hold" from 22 brokerages (2 sell, 12 hold, 8 buy) and an average 12‑month price target of $74.85, with notable downgrades including Goldman Sachs to "sell" ($59 target) and Wells Fargo trimming its target to $70.
• In its most recent quarter Best Buy reported EPS $2.61 (beat by $0.13) while revenue of $13.81B missed estimates; the company set FY2027 guidance of $6.30–$6.60 EPS versus analysts' ~6.18 forecast.
• Best Buy raised its quarterly dividend to $0.96 (annualized $3.84) for about a 5.8% yield, even as insiders sold roughly 77,247 shares (~$4.95M) over the last three months.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) has been given an average recommendation of "Hold" by the twenty-two brokerages that are covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and eight have issued a buy rating on the company. The average 12 month price objective among analysts that have covered the stock in the last year is $74.85.

A number of brokerages have weighed in on BBY. Wells Fargo & Company decreased their target price on shares of Best Buy from $75.00 to $70.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 18th. The Goldman Sachs Group lowered shares of Best Buy from a "buy" rating to a "sell" rating and set a $59.00 target price for the company. in a research note on Monday, April 13th. KeyCorp restated a "sector weight" rating on shares of Best Buy in a research note on Wednesday, March 4th. Piper Sandler restated a "buy" rating on shares of Best Buy in a research note on Wednesday, March 4th. Finally, Citigroup upped their price objective on Best Buy from $67.00 to $69.00 and gave the stock a "neutral" rating in a research note on Wednesday, March 4th.

Best Buy Price Performance

Shares of BBY opened at $65.72 on Friday. The firm has a market cap of $13.74 billion, a PE ratio of 13.04, a P/E/G ratio of 1.60 and a beta of 1.35. The company has a current ratio of 1.11, a quick ratio of 0.43 and a debt-to-equity ratio of 0.39. The firm has a fifty day simple moving average of $64.14 and a two-hundred day simple moving average of $70.44. Best Buy has a 1-year low of $59.77 and a 1-year high of $84.99.

Best Buy (NYSE:BBY - Get Free Report) last announced its earnings results on Tuesday, March 3rd. The technology retailer reported $2.61 earnings per share for the quarter, beating analysts' consensus estimates of $2.48 by $0.13. The business had revenue of $13.81 billion during the quarter, compared to analyst estimates of $13.96 billion. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The company's quarterly revenue was down 1.0% compared to the same quarter last year. During the same period in the previous year, the business earned $2.58 EPS. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. On average, equities analysts anticipate that Best Buy will post 6.18 EPS for the current year.

Best Buy Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, April 14th. Stockholders of record on Tuesday, March 24th were paid a $0.96 dividend. This is a positive change from Best Buy's previous quarterly dividend of $0.95. The ex-dividend date was Tuesday, March 24th. This represents a $3.84 annualized dividend and a dividend yield of 5.8%. Best Buy's dividend payout ratio (DPR) is currently 76.19%.

Insider Transactions at Best Buy

In other news, CEO Corie S. Barry sold 42,869 shares of the company's stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $2,744,473.38. Following the completion of the sale, the chief executive officer directly owned 523,138 shares in the company, valued at $33,491,294.76. This represents a 7.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Matthew M. Bilunas sold 11,356 shares of the company's stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $727,011.12. Following the completion of the sale, the chief financial officer owned 76,884 shares of the company's stock, valued at $4,922,113.68. This trade represents a 12.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 77,247 shares of company stock worth $4,945,353 over the last three months. 0.47% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Best Buy

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in Best Buy by 1.3% in the 4th quarter. Vanguard Group Inc. now owns 24,255,320 shares of the technology retailer's stock worth $1,623,409,000 after buying an additional 307,905 shares during the period. AQR Capital Management LLC boosted its holdings in Best Buy by 30.9% in the 4th quarter. AQR Capital Management LLC now owns 9,158,839 shares of the technology retailer's stock worth $613,001,000 after buying an additional 2,160,968 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in Best Buy by 2.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 7,452,642 shares of the technology retailer's stock worth $498,805,000 after buying an additional 160,713 shares during the period. Invesco Ltd. boosted its holdings in Best Buy by 6.1% in the 4th quarter. Invesco Ltd. now owns 4,732,080 shares of the technology retailer's stock worth $316,718,000 after buying an additional 271,988 shares during the period. Finally, Morgan Stanley boosted its holdings in Best Buy by 19.1% in the 4th quarter. Morgan Stanley now owns 3,778,294 shares of the technology retailer's stock worth $252,881,000 after buying an additional 605,911 shares during the period. 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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