Best Buy (NYSE:BBY) Given New $85.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised Best Buy’s price target from $65 to $85 while maintaining an “equal weight” rating, implying approximately 3.07% upside from the stock’s current price.
• Analyst sentiment remains cautious: Best Buy has a consensus “Hold” rating, with five Buy, fifteen Hold, and two Sell ratings and an average price target of $82.25.
• Best Buy recently exceeded quarterly earnings and revenue expectations, reporting $1.28 in EPS and $8.94 billion in revenue, while insiders have sold more than $77 million of stock over the past 90 days.

Best Buy (NYSE:BBY - Get Free Report) had its price target raised by investment analysts at Wells Fargo & Company from $65.00 to $85.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the technology retailer's stock. Wells Fargo & Company's target price points to a potential upside of 3.07% from the stock's current price.

Other equities research analysts have also recently issued research reports about the company. Truist Financial set a $95.00 price objective on Best Buy and gave the stock a "buy" rating in a report on Tuesday. UBS Group reaffirmed a "neutral" rating and set a $86.00 target price (up from $85.00) on shares of Best Buy in a research note on Friday, May 29th. Bank of America assumed coverage on Best Buy in a research report on Monday, August 3rd. They issued an "underperform" rating and a $80.00 target price for the company. BNP Paribas Exane increased their price target on shares of Best Buy from $74.00 to $76.00 and gave the stock a "neutral" rating in a research note on Friday, May 29th. Finally, Wall Street Zen downgraded Best Buy from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. Five equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $82.25.

Best Buy Stock Performance

NYSE BBY opened at $82.47 on Tuesday. The stock has a market capitalization of $17.38 billion, a PE ratio of 15.27, a P/E/G ratio of 2.36 and a beta of 1.29. Best Buy has a 1 year low of $55.10 and a 1 year high of $91.26. The company's 50 day simple moving average is $80.08 and its two-hundred day simple moving average is $69.51. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.12 and a quick ratio of 0.40.

Best Buy (NYSE:BBY - Get Free Report) last announced its earnings results 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 net margin of 2.73% and a return on equity of 48.70%. The business had revenue of $8.94 billion for the quarter, compared to the consensus estimate of $8.82 billion. During the same period last year, the firm posted $1.15 earnings per share. Best Buy's quarterly revenue was up 1.9% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Analysts predict that Best Buy will post 6.56 earnings per share for the current fiscal year.

Insider Buying and Selling at Best Buy

In other news, CAO Mathew Watson sold 1,784 shares of the business's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $73.80, for a total value of $131,659.20. Following the transaction, the chief accounting officer directly owned 21,630 shares in the company, valued at $1,596,294. The trade was a 7.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Richard M. Schulze sold 224,705 shares of the company's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $78.10, for a total value of $17,549,460.50. Following the completion of the transaction, the chairman directly owned 10,430,936 shares of the company's stock, valued at approximately $814,656,101.60. This trade represents a 2.11% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,002,134 shares of company stock worth $77,283,527 over the last 90 days. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Tema ETFs LLC lifted its holdings in shares of Best Buy by 6.5% in the second quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer's stock worth $179,000 after buying an additional 145 shares in the last quarter. Krane Funds Advisors LLC grew its stake in Best Buy by 3.0% during the fourth quarter. Krane Funds Advisors LLC now owns 5,163 shares of the technology retailer's stock valued at $346,000 after acquiring an additional 151 shares in the last quarter. Applied Finance Capital Management LLC increased its holdings in Best Buy by 3.8% in the 4th quarter. Applied Finance Capital Management LLC now owns 4,270 shares of the technology retailer's stock valued at $286,000 after acquiring an additional 157 shares during the last quarter. J. Team Financial Inc. increased its holdings in Best Buy by 4.2% in the 4th quarter. J. Team Financial Inc. now owns 4,251 shares of the technology retailer's stock valued at $285,000 after acquiring an additional 171 shares during the last quarter. Finally, UMB Bank n.a. lifted its stake in Best Buy by 6.2% in the 4th quarter. UMB Bank n.a. now owns 3,158 shares of the technology retailer's stock worth $211,000 after purchasing an additional 185 shares in the last quarter. 80.96% of the stock is currently owned by institutional investors.

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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