Best Buy (NYSE:BBY) Price Target Raised to $89.00

Key Points

• Jefferies raised Best Buy’s price target from $83 to $89 and kept a buy rating, implying about 16.6% upside from the current share price.
• Best Buy also reported strong quarterly results, beating estimates on both earnings and revenue, with EPS of $1.28 versus $1.22 expected and revenue of $8.94 billion versus $8.82 billion projected.
• Sentiment remains mixed among analysts overall: the stock currently has an average Hold rating and an average target price of $70.25, though recent sales strength and a reaffirmed full-year outlook have supported optimism.

Best Buy (NYSE:BBY - Get Free Report) had its price objective hoisted by Jefferies Financial Group from $83.00 to $89.00 in a research report issued on Thursday, MarketBeat reports. The firm presently has a "buy" rating on the technology retailer's stock. Jefferies Financial Group's price objective would suggest a potential upside of 16.61% from the company's current price.

Other equities analysts have also issued reports about the company. Morgan Stanley dropped their price target on Best Buy from $76.00 to $72.00 and set an "equal weight" rating on the stock in a research note on Wednesday, March 4th. BNP Paribas Exane boosted their price target on Best Buy from $68.00 to $74.00 and gave the company a "neutral" rating in a research note on Wednesday, March 4th. DA Davidson set a $78.00 price target on Best Buy in a research note on Thursday, March 5th. Daiwa Securities Group dropped their price target on Best Buy from $80.00 to $68.00 and set a "neutral" rating on the stock in a research note on Thursday, March 5th. Finally, Wells Fargo & Company dropped their price target on Best Buy from $70.00 to $60.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 14th. Eight research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $70.25.

Best Buy Trading Up 18.3%

NYSE BBY traded up $11.79 during trading hours on Thursday, hitting $76.33. 9,487,238 shares of the company's stock were exchanged, compared to its average volume of 4,449,307. The firm has a market cap of $16.08 billion, a price-to-earnings ratio of 15.12, a PEG ratio of 1.56 and a beta of 1.22. The stock has a 50-day simple moving average of $61.74 and a 200 day simple moving average of $66.83. The company has a current ratio of 1.11, a quick ratio of 0.43 and a debt-to-equity ratio of 0.39. Best Buy has a 1-year low of $55.10 and a 1-year high of $84.99.

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 (EPS) for the quarter, beating the consensus estimate of $1.22 by $0.06. Best Buy had a return on equity of 49.17% and a net margin of 2.56%.The firm had revenue of $8.94 billion for the quarter, compared to analyst estimates of $8.82 billion. During the same period in the previous year, the firm earned $1.15 earnings per share. The company's revenue was up 1.9% compared to the same quarter last year. On average, equities analysts forecast that Best Buy will post 6.5 EPS for the current fiscal year.

Insider Transactions at Best Buy

In related news, EVP Jason J. Bonfig sold 6,336 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $405,630.72. Following the completion of the sale, the executive vice president directly owned 79,137 shares of the company's stock, valued at approximately $5,066,350.74. This represents a 7.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Corie S. Barry sold 42,869 shares of the stock in a transaction on Monday, March 23rd. The shares were 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 of the company's stock, valued at $33,491,294.76. The trade was a 7.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 77,247 shares of company stock valued at $4,945,353. Corporate insiders own 0.47% of the company's stock.

Institutional Investors Weigh In On Best Buy

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew 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 valued at $1,623,409,000 after purchasing an additional 307,905 shares during the period. AQR Capital Management LLC grew its holdings in Best Buy by 30.9% during the fourth quarter. AQR Capital Management LLC now owns 9,158,839 shares of the technology retailer's stock valued at $613,001,000 after purchasing an additional 2,160,968 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in Best Buy by 2.2% during 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 during the period. Invesco Ltd. increased 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 acquiring an additional 271,988 shares during the last quarter. Finally, Morgan Stanley increased 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 acquiring an additional 605,911 shares during the last quarter. 80.96% of the stock is owned by hedge funds and other institutional investors.

Best Buy News Summary

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

• Positive Sentiment: Best Buy beat Wall Street estimates on both earnings and revenue, with adjusted EPS of $1.28 versus $1.22 expected and revenue of $8.94 billion versus $8.82 billion projected. Best Buy Reports First Quarter Results
• Positive Sentiment: Comparable sales improved 2.0%, helped by strength in gaming, computers, and mobile phones, showing that key product categories are still driving traffic and spending. Best Buy beats on top and bottom lines as retailer aims to reinvigorate sales
• Positive Sentiment: The company reaffirmed its full-year outlook, which suggests management is confident the recent improvement can continue. Best Buy stock pops on first quarter earnings beat
• Neutral Sentiment: Analysts and media coverage highlighted that Best Buy is still navigating a mixed backdrop, with gaming and computing strength partly offset by softer appliance demand. Best Buy Reports Higher Profit on Rising Sales
• Positive Sentiment: Investors also appear to be attracted to Best Buy’s roughly 5% dividend yield, which makes the stock appealing even without blockbuster growth. Best Buy Surges on Earnings. Its 5% Yield Looks Even Better.

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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