Best Buy (NYSE:BBY) Receives Underperform Rating from Bank of America

Key Points

• Bank of America reaffirmed its “underperform” rating on Best Buy and set an $80 price target, implying 7.19% downside from the stock’s previous close.
• Analyst sentiment remains mixed, with five Buy, 15 Hold and two Sell ratings; the consensus rating is “Hold” with an average target price of $80.50.
• Best Buy exceeded quarterly expectations, reporting $1.28 in EPS versus $1.23 expected and $8.94 billion in revenue, while insiders sold more than $77 million worth of shares over the past 90 days.

Best Buy (NYSE:BBY - Get Free Report)'s stock had its "underperform" rating reaffirmed by equities researchers at Bank of America in a report issued on Monday,Benzinga reports. They presently have a $80.00 target price on the technology retailer's stock. Bank of America's price target indicates a potential downside of 7.19% from the stock's previous close.

BBY has been the subject of several other reports. Evercore boosted their target price on Best Buy from $65.00 to $85.00 in a research report on Friday, May 29th. Loop Capital cut Best Buy from a "buy" rating to a "hold" rating and set a $82.00 price objective on the stock. in a report on Monday, July 13th. The Goldman Sachs Group increased their price objective on shares of Best Buy from $59.00 to $62.00 and gave the stock a "sell" rating in a research report on Friday, May 29th. DA Davidson reaffirmed a "buy" rating and set a $90.00 price objective on shares of Best Buy in a research report on Monday, June 22nd. Finally, Telsey Advisory Group set a $90.00 price objective on shares of Best Buy and gave the stock an "outperform" rating in a research report on Friday, May 29th. 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. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $80.50.

Best Buy Stock Performance

BBY stock opened at $86.19 on Monday. The company has a 50 day moving average price of $78.41 and a 200 day moving average price of $68.83. Best Buy has a fifty-two week low of $55.10 and a fifty-two week high of $91.26. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.12 and a quick ratio of 0.40. The stock has a market capitalization of $18.17 billion, a PE ratio of 15.96, a price-to-earnings-growth ratio of 2.29 and a beta of 1.30.

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 $1.23 by $0.05. The business had revenue of $8.94 billion for the quarter, compared to analyst estimates of $8.82 billion. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The firm's revenue for the quarter was up 1.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.15 earnings per share. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Analysts forecast that Best Buy will post 6.56 EPS for the current year.

Insider Buying and Selling at Best Buy

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

Institutional Trading of Best Buy

A number of hedge funds have recently made changes to their positions in BBY. Trust Asset Management LLC bought a new position in shares of Best Buy during the 2nd quarter worth approximately $165,000. Tema ETFs LLC raised its stake in Best Buy by 6.5% in the 2nd quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer's stock valued at $179,000 after acquiring an additional 145 shares during the period. KMG Fiduciary Partners LLC lifted its holdings in Best Buy by 362.2% during the 2nd quarter. KMG Fiduciary Partners LLC now owns 20,098 shares of the technology retailer's stock valued at $1,525,000 after purchasing an additional 15,750 shares during the last quarter. LVM Capital Management Ltd. MI bought a new position in Best Buy during the second quarter worth $600,000. Finally, Legacy Wealth Asset Management LLC bought a new position in Best Buy during the second quarter worth $235,000. 80.96% of the stock is owned by institutional investors and hedge funds.

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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