Best Buy (NYSE:BBY) Shares Gap Down - Should You Sell?

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $71.52, but opened at $68.37. Best Buy shares last traded at $65.93, with a volume of 1,662,325 shares changing hands.

Wall Street Analysts Forecast Growth

BBY has been the subject of several analyst reports. Evercore ISI dropped their price objective on Best Buy from $95.00 to $80.00 and set an "in-line" rating for the company in a report on Wednesday, March 5th. Wedbush dropped their price objective on Best Buy from $75.00 to $70.00 and set a "neutral" rating for the company in a report on Friday. Wells Fargo & Company lowered their price target on Best Buy from $75.00 to $67.00 and set an "equal weight" rating for the company in a report on Friday. Loop Capital lowered their price target on Best Buy from $90.00 to $80.00 and set a "buy" rating for the company in a report on Friday. Finally, Piper Sandler lowered their price target on Best Buy from $92.00 to $82.00 and set an "overweight" rating for the company in a report on Friday. One analyst has rated the stock with a sell rating, ten have given a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $86.11.

Best Buy Stock Down 0.1%

The company has a quick ratio of 0.22, a current ratio of 1.00 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $14.02 billion, a PE ratio of 11.32, a P/E/G ratio of 2.10 and a beta of 1.27. The stock has a 50-day moving average of $67.25 and a 200 day moving average of $78.93.

Best Buy (NYSE:BBY - Get Free Report) last issued its quarterly earnings results on Thursday, May 29th. The technology retailer reported $1.15 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.06. The company had revenue of $8.77 billion during the quarter, compared to the consensus estimate of $8.77 billion. Best Buy had a return on equity of 45.93% and a net margin of 3.01%. Best Buy's revenue was down .9% on a year-over-year basis. During the same period last year, the business posted $1.20 earnings per share. Sell-side analysts anticipate that Best Buy Co., Inc. will post 6.18 EPS for the current year.

Best Buy Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 10th. Shareholders of record on Thursday, June 19th will be paid a $0.95 dividend. The ex-dividend date of this dividend is Wednesday, June 18th. This represents a $3.80 dividend on an annualized basis and a yield of 5.74%. Best Buy's dividend payout ratio is currently 88.99%.

Insiders Place Their Bets

In related news, insider Todd G. Hartman sold 4,893 shares of the firm's stock in a transaction that occurred on Friday, March 21st. The stock was sold at an average price of $72.65, for a total transaction of $355,476.45. Following the completion of the transaction, the insider now owns 32,320 shares of the company's stock, valued at $2,348,048. This trade represents a 13.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Mathew Watson sold 3,182 shares of Best Buy stock in a transaction on Friday, March 14th. The stock was sold at an average price of $71.29, for a total value of $226,844.78. Following the completion of the sale, the chief accounting officer now directly owns 19,218 shares of the company's stock, valued at approximately $1,370,051.22. The trade was a 14.21% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 78,355 shares of company stock worth $5,767,213 in the last ninety days. 0.47% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Best Buy

Institutional investors and hedge funds have recently modified their holdings of the company. Pinnacle Bancorp Inc. lifted its position in Best Buy by 108.5% during the first quarter. Pinnacle Bancorp Inc. now owns 342 shares of the technology retailer's stock valued at $25,000 after purchasing an additional 178 shares in the last quarter. Rakuten Securities Inc. increased its holdings in shares of Best Buy by 971.9% in the fourth quarter. Rakuten Securities Inc. now owns 343 shares of the technology retailer's stock worth $29,000 after purchasing an additional 311 shares during the last quarter. Vermillion Wealth Management Inc. bought a new stake in shares of Best Buy in the fourth quarter worth about $31,000. Golden State Wealth Management LLC bought a new stake in shares of Best Buy in the fourth quarter worth about $32,000. Finally, Atlas Capital Advisors Inc. increased its stake in Best Buy by 186.9% during the fourth quarter. Atlas Capital Advisors Inc. now owns 373 shares of the technology retailer's stock worth $32,000 after acquiring an additional 243 shares during the last quarter. 80.96% of the stock is currently owned by hedge funds and other institutional investors.

About Best Buy

Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.