Best Buy (NYSE:BBY) Trading Up 4.7% - Time to Buy?

Key Points

• Best Buy (NYSE:BBY) shares increased by 4.7% to a last traded price of $75.19, despite a significant decline in trading volume, down 75% from the average.
• Analysts hold a mixed view on the stock, with eight recommending a buy, eleven a hold, and one a sell, leading to an average rating of "Hold" with a target price of $85.72.
• Best Buy announced a quarterly dividend of $0.95, representing an annualized amount of $3.80 and a yield of 5.1%, alongside a notable insider sale by Chairman Richard M. Schulze.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report)'s stock price traded up 4.7% on Tuesday . The stock traded as high as $74.97 and last traded at $75.19. 906,355 shares were traded during mid-day trading, a decline of 75% from the average session volume of 3,595,461 shares. The stock had previously closed at $71.80.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Guggenheim reissued a "buy" rating and set a $90.00 target price on shares of Best Buy in a research note on Tuesday, June 10th. Wedbush decreased their price target on shares of Best Buy from $75.00 to $70.00 and set a "neutral" rating on the stock in a report on Friday, May 30th. Telsey Advisory Group reiterated an "outperform" rating and set a $90.00 price objective on shares of Best Buy in a research report on Friday. Wells Fargo & Company dropped their price objective on shares of Best Buy from $75.00 to $67.00 and set an "equal weight" rating for the company in a research note on Friday, May 30th. Finally, Loop Capital cut their target price on shares of Best Buy from $90.00 to $80.00 and set a "buy" rating on the stock in a research report on Friday, May 30th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Best Buy has an average rating of "Hold" and a consensus target price of $85.72.

Best Buy Trading Up 2.9%

The company has a current ratio of 1.02, a quick ratio of 0.32 and a debt-to-equity ratio of 0.42. The firm has a market capitalization of $15.74 billion, a price-to-earnings ratio of 18.13, a P/E/G ratio of 1.91 and a beta of 1.21. The firm's 50-day moving average is $69.18 and its 200 day moving average is $71.96.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings results on Thursday, May 29th. The technology retailer reported $1.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.06. The firm had revenue of $8.77 billion during the quarter, compared to the consensus estimate of $8.77 billion. Best Buy had a net margin of 2.13% and a return on equity of 46.40%. The company's revenue for the quarter was down .9% on a year-over-year basis. During the same quarter last year, the firm earned $1.20 earnings per share. Best Buy has set its FY 2026 guidance at 6.150-6.300 EPS. On average, equities analysts predict that Best Buy Co., Inc. will post 6.18 earnings per share for the current fiscal year.

Best Buy Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, July 10th. Stockholders of record on Thursday, June 19th were given a $0.95 dividend. The ex-dividend date was Wednesday, June 18th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 5.1%. Best Buy's payout ratio is 92.91%.

Insider Buying and Selling at Best Buy

In other Best Buy news, Chairman Richard M. Schulze sold 729,201 shares of the stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $72.95, for a total transaction of $53,195,212.95. Following the completion of the sale, the chairman directly owned 196,100 shares in the company, valued at approximately $14,305,495. This trade represents a 78.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 0.47% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Best Buy

Institutional investors have recently made changes to their positions in the stock. Mirae Asset Global Investments Co. Ltd. grew its stake in shares of Best Buy by 7.1% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 200,960 shares of the technology retailer's stock valued at $14,560,000 after buying an additional 13,378 shares during the period. GAMMA Investing LLC boosted its holdings in Best Buy by 5,519.3% in the first quarter. GAMMA Investing LLC now owns 173,131 shares of the technology retailer's stock worth $12,744,000 after acquiring an additional 170,050 shares in the last quarter. Rhumbline Advisers grew its stake in Best Buy by 10.2% in the first quarter. Rhumbline Advisers now owns 502,272 shares of the technology retailer's stock valued at $36,972,000 after acquiring an additional 46,645 shares during the period. Blackhawk Capital Partners LLC. acquired a new stake in Best Buy in the first quarter valued at approximately $1,574,000. Finally, Alberta Investment Management Corp increased its holdings in shares of Best Buy by 25.6% during the first quarter. Alberta Investment Management Corp now owns 32,900 shares of the technology retailer's stock valued at $2,422,000 after acquiring an additional 6,700 shares in the last quarter. Institutional investors and hedge funds own 80.96% of the company's stock.

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.