Best Buy (NYSE:BBY) Given Buy Rating at DA Davidson

Key Points

• DA Davidson reiterated its buy rating on Best Buy and maintained a $90 price target, implying about 17% upside from the current share price.
• Other analysts were mixed but generally more constructive recently, with several raising price targets; however, the overall consensus remains Hold with an average target of $79.65.
• Best Buy posted a Q1 earnings beat, reporting $1.28 EPS versus $1.23 expected and revenue of $8.94 billion versus $8.82 billion expected, while the stock traded around $76.87 on Monday.

Best Buy (NYSE:BBY - Get Free Report)'s stock had its "buy" rating reiterated by DA Davidson in a note issued to investors on Monday,Benzinga reports. They currently have a $90.00 target price on the technology retailer's stock. DA Davidson's price target would suggest a potential upside of 17.08% from the company's current price.

Several other analysts also recently commented on the stock. UBS Group restated a "neutral" rating and set a $86.00 price objective (up from $85.00) on shares of Best Buy in a research report on Friday, May 29th. Truist Financial increased their price target on Best Buy from $66.00 to $81.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. Evercore raised their price target on Best Buy from $65.00 to $85.00 in a report on Friday, May 29th. Wall Street Zen upgraded Best Buy from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Guggenheim reaffirmed a "buy" rating and issued a $90.00 price objective on shares of Best Buy in a research note on Friday, May 29th. Six equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $79.65.

Best Buy Stock Performance

Best Buy stock traded up $2.14 during midday trading on Monday, hitting $76.87. The stock had a trading volume of 271,436 shares, compared to its average volume of 4,491,495. Best Buy has a 52-week low of $55.10 and a 52-week high of $84.99. The company has a market capitalization of $16.20 billion, a PE ratio of 14.25, a P/E/G ratio of 1.99 and a beta of 1.30. The firm's fifty day moving average is $65.59 and its two-hundred day moving average is $66.55. The company has a current ratio of 1.12, a quick ratio of 0.40 and a debt-to-equity ratio of 0.38.

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

Insider Buying and Selling at Best Buy

In other Best Buy news, CAO Mathew Watson sold 1,784 shares of the business's stock in a transaction on Friday, May 29th. The shares were sold at an average price of $73.80, for a total value of $131,659.20. Following the sale, the chief accounting officer owned 21,630 shares in the company, valued at $1,596,294. The trade was a 7.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Richard M. Schulze sold 500,350 shares of the stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $76.12, for a total transaction of $38,086,642.00. Following the transaction, the chairman directly owned 10,930,586 shares of the company's stock, valued at $832,036,206.32. This trade represents a 4.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 583,533 shares of company stock valued at $44,584,972 over the last ninety days. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Best Buy

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake 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 acquiring an additional 307,905 shares during the last quarter. AQR Capital Management LLC boosted its position in shares of Best Buy by 30.9% during the 4th quarter. AQR Capital Management LLC now owns 9,158,839 shares of the technology retailer's stock valued at $613,001,000 after acquiring an additional 2,160,968 shares during the last quarter. Charles Schwab Investment Management Inc. grew its holdings in shares of Best Buy by 2.2% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,452,642 shares of the technology retailer's stock valued at $498,805,000 after purchasing an additional 160,713 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Best Buy by 6.1% in the fourth quarter. Invesco Ltd. now owns 4,732,080 shares of the technology retailer's stock valued at $316,718,000 after purchasing an additional 271,988 shares in the last quarter. Finally, Morgan Stanley increased its position in Best Buy by 19.1% in the fourth quarter. Morgan Stanley now owns 3,778,294 shares of the technology retailer's stock worth $252,881,000 after purchasing an additional 605,911 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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