Best Buy (NYSE:BBY) Hits New 12-Month Low - What's Next?

Key Points

• Best Buy hit a new 52-week low of $59.73 (last traded ~$59.86) even though analysts maintain a consensus "Hold" rating with an average price target of $74.85, implying potential upside from current levels.
• The company beat quarterly EPS estimates ($2.61 vs. $2.48) while revenue fell 1% to $13.81 billion, and management set FY2027 EPS guidance of 6.30–6.60 (sell‑side consensus ~6.5).
• Best Buy raised its quarterly dividend to $0.96 (a 6.5% yield) but carries a high payout ratio (~76%), and insiders have been net sellers (77,247 shares worth about $4.95M in the past 90 days).

Best Buy Co., Inc. (NYSE:BBY - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $59.73 and last traded at $59.8560, with a volume of 754932 shares traded. The stock had previously closed at $60.45.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on BBY. BNP Paribas Exane boosted their target price on Best Buy from $68.00 to $74.00 and gave the stock a "neutral" rating in a research report on Wednesday, March 4th. Barclays cut their target price on Best Buy from $81.00 to $77.00 and set an "equal weight" rating on the stock in a research report on Thursday, January 8th. Citigroup upped their price target on Best Buy from $67.00 to $69.00 and gave the company a "neutral" rating in a research report on Wednesday, March 4th. Truist Financial dropped their target price on Best Buy from $73.00 to $66.00 and set a "hold" rating on the stock in a research report on Tuesday, March 3rd. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Best Buy in a research report on Wednesday, January 21st. Eight equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Best Buy currently has a consensus rating of "Hold" and an average target price of $74.85.

Best Buy Stock Performance

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 50-day simple moving average of $63.87 and a two-hundred day simple moving average of $69.92. The company has a market capitalization of $12.42 billion, a price-to-earnings ratio of 11.76, a price-to-earnings-growth ratio of 1.49 and a beta of 1.35.

Best Buy (NYSE:BBY - Get Free Report) last issued its earnings results on Tuesday, March 3rd. The technology retailer reported $2.61 earnings per share for the quarter, topping the consensus estimate of $2.48 by $0.13. Best Buy had a return on equity of 49.17% and a net margin of 2.56%.The company had revenue of $13.81 billion for the quarter, compared to analyst estimates of $13.96 billion. During the same period in the prior year, the firm posted $2.58 EPS. The business's revenue was down 1.0% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, sell-side analysts forecast that Best Buy Co., Inc. will post 6.5 earnings per share for the current fiscal year.

Best Buy Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, April 14th. Stockholders of record on Tuesday, March 24th were paid a dividend of $0.96 per share. This is a boost 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 6.5%. Best Buy's dividend payout ratio is currently 76.19%.

Insider Activity at Best Buy

In other news, EVP Jason J. Bonfig sold 6,336 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 transaction of $405,630.72. Following the completion of the sale, the executive vice president owned 79,137 shares in the company, valued at approximately $5,066,350.74. This represents a 7.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Kathleen Scarlett sold 8,049 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 $515,296.98. Following the sale, the executive vice president owned 102,669 shares of the company's stock, valued at approximately $6,572,869.38. This trade represents a 7.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 77,247 shares of company stock worth $4,945,353 in the last 90 days. Insiders own 0.59% of the company's stock.

Institutional Trading of Best Buy

Large investors have recently made changes to their positions in the stock. Palisade Asset Management LLC bought a new stake in shares of Best Buy during the 3rd quarter worth about $25,000. Harbor Capital Advisors Inc. boosted its stake in Best Buy by 69.3% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 337 shares of the technology retailer's stock valued at $25,000 after purchasing an additional 138 shares during the period. MV Capital Management Inc. bought a new stake in Best Buy during the 4th quarter valued at approximately $25,000. Torren Management LLC bought a new stake in Best Buy during the 4th quarter valued at approximately $25,000. Finally, Root Financial Partners LLC bought a new stake in Best Buy during the 3rd quarter valued at approximately $32,000. Institutional investors own 80.96% of the company's stock.

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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