Best Buy (NYSE:BBY) Sets New 12-Month Low - Here's Why

Key Points

• Shares hit a new 52‑week low of $58.11 on Monday and last traded at $58.24 on about 1.05 million shares, trading below its 50‑ and 200‑day moving averages.
• Wall Street's consensus rating is Hold with an average price target of $71.75, reflecting mixed analyst actions including several target cuts and some raises.
• Best Buy beat quarterly EPS estimates ($2.61 vs. $2.48) while revenue fell 1% year‑over‑year and FY27 EPS guidance was set at 6.30–6.60; the company raised its quarterly dividend to $0.96 (a 6.7% yield) even as insiders, including the CEO, sold shares.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) shares reached a new 52-week low on Monday . The stock traded as low as $58.11 and last traded at $58.2440, with a volume of 1046475 shares. The stock had previously closed at $60.05.

Wall Street Analysts Forecast Growth

BBY has been the subject of several recent analyst reports. Morgan Stanley decreased their price objective on shares of Best Buy from $76.00 to $72.00 and set an "equal weight" rating for the company in a research report on Wednesday, March 4th. Wedbush raised their price objective on shares of Best Buy from $7.00 to $8.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 28th. DA Davidson set a $78.00 price objective on shares of Best Buy in a research note on Thursday, March 5th. KeyCorp reiterated a "sector weight" rating on shares of Best Buy in a research report on Wednesday, March 4th. Finally, Daiwa Securities Group cut their target price on shares of Best Buy from $80.00 to $68.00 and set a "neutral" rating on the stock in a research note on Thursday, March 5th. Nine equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $71.75.

Best Buy Stock Performance

The firm has a market capitalization of $12.07 billion, a P/E ratio of 11.45, a price-to-earnings-growth ratio of 1.48 and a beta of 1.22. The company's 50 day moving average is $63.32 and its 200-day moving average is $69.48. The company has a quick ratio of 0.43, a current ratio of 1.11 and a debt-to-equity ratio of 0.39.

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 (EPS) for the quarter, topping the consensus estimate of $2.48 by $0.13. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The business 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 earned $2.58 earnings per share. Best Buy's revenue was down 1.0% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, equities analysts anticipate that Best Buy Co., Inc. will post 6.5 EPS for the current year.

Best Buy Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, April 14th. Investors of record on Tuesday, March 24th were issued a $0.96 dividend. The ex-dividend date was Tuesday, March 24th. This represents a $3.84 dividend on an annualized basis and a dividend yield of 6.7%. This is an increase from Best Buy's previous quarterly dividend of $0.95. Best Buy's dividend payout ratio (DPR) is 76.19%.

Insider Buying and Selling

In related news, EVP Kathleen Scarlett sold 8,049 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 $515,296.98. Following the transaction, the executive vice president directly owned 102,669 shares in the company, valued at $6,572,869.38. This trade represents a 7.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Corie S. Barry sold 42,869 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 $2,744,473.38. Following the completion of the transaction, the chief executive officer owned 523,138 shares in the company, valued at approximately $33,491,294.76. This represents a 7.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 77,247 shares of company stock worth $4,945,353 over the last quarter. Corporate insiders own 0.59% of the company's stock.

Hedge Funds Weigh In On Best Buy

Several large investors have recently bought and sold shares of BBY. Woodline Partners LP lifted its stake in Best Buy by 40.1% during the 1st quarter. Woodline Partners LP now owns 16,436 shares of the technology retailer's stock valued at $1,210,000 after acquiring an additional 4,701 shares in the last quarter. Daiwa Securities Group Inc. lifted its stake in Best Buy by 4.4% during the 2nd quarter. Daiwa Securities Group Inc. now owns 29,560 shares of the technology retailer's stock valued at $1,984,000 after acquiring an additional 1,234 shares in the last quarter. Investment Management Corp of Ontario lifted its stake in Best Buy by 127.7% during the 2nd quarter. Investment Management Corp of Ontario now owns 12,997 shares of the technology retailer's stock valued at $872,000 after acquiring an additional 7,288 shares in the last quarter. Ieq Capital LLC lifted its stake in Best Buy by 155.4% during the 2nd quarter. Ieq Capital LLC now owns 160,568 shares of the technology retailer's stock valued at $10,779,000 after acquiring an additional 97,688 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its stake in Best Buy by 32.0% during the 2nd quarter. Alliancebernstein L.P. now owns 313,584 shares of the technology retailer's stock valued at $21,051,000 after acquiring an additional 76,102 shares in the last quarter. 80.96% of the stock is currently owned by institutional investors.

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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