Best Buy (NYSE:BBY) Given "Buy" Rating at Guggenheim

Key Points

• Guggenheim reiterated its Buy rating on Best Buy and kept a $90 price target, implying about 18% upside from the stock’s current level.
• Best Buy shares were up 2.0% to $76.27 in Friday trading, after the company posted a recent earnings beat with EPS of $1.28 and revenue of $8.94 billion, both above expectations.
• Analyst sentiment remains mixed overall, with the stock carrying a Hold consensus rating and an average price target of $78.60, even as several firms recently raised their targets.

Best Buy (NYSE:BBY - Get Free Report)'s stock had its "buy" rating reissued by research analysts at Guggenheim in a research note issued to investors on Friday,Benzinga reports. They presently have a $90.00 price target on the technology retailer's stock. Guggenheim's price target indicates a potential upside of 18.00% from the stock's current price.

A number of other brokerages have also recently issued reports on BBY. UBS Group reaffirmed a "neutral" rating and issued a $86.00 price objective (up from $85.00) on shares of Best Buy in a research note on Friday. Telsey Advisory Group set a $90.00 target price on shares of Best Buy and gave the company an "outperform" rating in a research report on Friday. KeyCorp restated a "sector weight" rating on shares of Best Buy in a research report on Wednesday, March 4th. Wedbush lifted their price objective on Best Buy from $70.00 to $75.00 and gave the stock a "neutral" rating in a research note on Friday. Finally, Citigroup upped their price objective on Best Buy from $60.00 to $79.00 and gave the company a "neutral" rating in a report on Friday. Six investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $78.60.

Best Buy Trading Up 2.0%

Best Buy stock traded up $1.53 during mid-day trading on Friday, hitting $76.27. The stock had a trading volume of 1,770,276 shares, compared to its average volume of 4,470,066. The stock has a 50-day simple moving average of $61.99 and a two-hundred day simple moving average of $66.80. 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 stock has a market capitalization of $16.07 billion, a PE ratio of 15.13, a P/E/G ratio of 1.59 and a beta of 1.22. Best Buy has a 12 month low of $55.10 and a 12 month high of $84.99.

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, topping the consensus estimate of $1.22 by $0.06. The firm had revenue of $8.94 billion during the quarter, compared to analysts' expectations of $8.82 billion. Best Buy had a return on equity of 49.17% and a net margin of 2.56%.The company's quarterly revenue was up 1.9% compared to the same quarter last year. During the same period in the previous year, the business posted $1.15 EPS. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, sell-side analysts forecast that Best Buy will post 6.5 EPS for the current year.

Insider Transactions at Best Buy

In other news, CFO Matthew M. Bilunas sold 11,356 shares of the business's stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $727,011.12. Following the sale, the chief financial officer directly owned 76,884 shares in the company, valued at $4,922,113.68. The trade was a 12.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Todd G. Hartman sold 5,339 shares of the company's stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $341,802.78. Following the transaction, the insider directly owned 44,098 shares of the company's stock, valued at $2,823,153.96. This represents a 10.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 77,247 shares of company stock worth $4,945,353. Company insiders own 0.47% of the company's stock.

Institutional Investors Weigh In On Best Buy

Institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC lifted its position in shares of Best Buy by 99.8% in the third quarter. AQR Capital Management LLC now owns 6,997,871 shares of the technology retailer's stock worth $525,120,000 after purchasing an additional 3,496,254 shares in the last quarter. Norges Bank bought a new position in Best Buy in the fourth quarter valued at $174,685,000. Schroder Investment Management Group grew its position in Best Buy by 378.8% in the fourth quarter. Schroder Investment Management Group now owns 3,096,015 shares of the technology retailer's stock valued at $207,216,000 after purchasing an additional 2,449,342 shares in the last quarter. Hsbc Holdings PLC increased its stake in Best Buy by 104.1% in the 4th quarter. Hsbc Holdings PLC now owns 2,020,539 shares of the technology retailer's stock valued at $135,685,000 after buying an additional 1,030,544 shares during the last quarter. Finally, KBC Group NV lifted its position in Best Buy by 293.6% during the 4th quarter. KBC Group NV now owns 1,052,805 shares of the technology retailer's stock worth $70,464,000 after buying an additional 785,294 shares in the last quarter. Institutional investors own 80.96% of the company's stock.

Key Stories Impacting Best Buy

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy delivered a clean Q1 beat on earnings and revenue, with positive comparable sales growth and improving margins. Best Buy (BBY) Beats Earnings Expectations, Shares Climb 15.8%
• Positive Sentiment: The company maintained its full-year guidance and issued Q2 sales guidance that came in better than expected, reinforcing confidence in the turnaround. Best Buy Reports First Quarter Results
• Positive Sentiment: Analyst sentiment improved after the report, with Jefferies raising its price target to $89 and Morgan Stanley lifting its target to $80, signaling additional upside. Analyst price target updates for Best Buy
• Neutral Sentiment: Unusual call option activity suggests traders are positioning for more volatility and continued momentum in BBY. Stock Traders Buy High Volume of Best Buy Call Options NYSE: BBY
• Neutral Sentiment: Best Buy also announced a quarterly dividend of $0.96 per share, which may appeal to income-focused investors. Best Buy dividend announcement

About Best Buy

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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