Best Buy's (BBY) "Hold" Rating Reaffirmed at Argus

Key Points

• Best Buy's stock has received a "hold" rating from analysts at Argus, with a consensus price target of $82.59, indicating a cautious approach from investment analysts.
• Recent quarterly earnings showed Best Buy reported earnings per share of $1.28, exceeding analysts' expectations, and revenue increased to $9.44 billion, reflecting a 1.6% year-over-year growth.
• Insider selling has been noted, with Chairman Richard M. Schulze selling 196,100 shares at an average price of $74, amounting to over $14.5 million in value, raising concerns among investors regarding insider confidence.

Best Buy (NYSE:BBY - Get Free Report)'s stock had its "hold" rating reaffirmed by analysts at Argus in a research note issued to investors on Tuesday,Benzinga reports.

A number of other equities research analysts have also recently commented on the company. UBS Group lowered their target price on Best Buy from $95.00 to $90.00 and set a "buy" rating on the stock in a report on Friday, May 30th. Barclays reiterated an "equal weight" rating and set a $74.00 target price on shares of Best Buy in a report on Friday, August 29th. Wedbush increased their target price on Best Buy from $70.00 to $75.00 and gave the company a "neutral" rating in a report on Friday, August 29th. Loop Capital lowered their target price on Best Buy from $90.00 to $80.00 and set a "buy" rating on the stock in a report on Friday, May 30th. Finally, Wall Street Zen upgraded Best Buy from a "hold" rating to a "buy" rating in a report on Saturday. Nine investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Best Buy presently has a consensus rating of "Hold" and a consensus price target of $82.59.

Best Buy Stock Performance

Shares of BBY stock opened at $74.58 on Tuesday. The company has a market cap of $15.67 billion, a price-to-earnings ratio of 20.60, a price-to-earnings-growth ratio of 2.00 and a beta of 1.19. The company has a current ratio of 1.04, a quick ratio of 0.36 and a debt-to-equity ratio of 0.43. The stock has a 50 day simple moving average of $71.27 and a 200-day simple moving average of $70.13. Best Buy has a 12-month low of $54.99 and a 12-month high of $103.48.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings results on Thursday, August 28th. The technology retailer reported $1.28 earnings per share for the quarter, topping analysts' consensus estimates of $1.22 by $0.06. The business had revenue of $9.44 billion for the quarter, compared to analysts' expectations of $9.23 billion. Best Buy had a return on equity of 47.32% and a net margin of 1.87%.The company's revenue was up 1.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.34 EPS. Best Buy has set its FY 2026 guidance at 6.150-6.300 EPS. On average, equities analysts forecast that Best Buy will post 6.18 EPS for the current year.

Insider Buying and Selling at Best Buy

In related news, Chairman Richard M. Schulze sold 196,100 shares of the stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $74.00, for a total value of $14,511,400.00. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Mathew Watson sold 3,715 shares of the stock in a transaction on Friday, August 29th. The stock was sold at an average price of $74.07, for a total value of $275,170.05. Following the completion of the transaction, the chief accounting officer directly owned 22,150 shares in the company, valued at $1,640,650.50. This trade represents a 14.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 201,833 shares of company stock worth $14,941,472 over the last ninety days. Corporate insiders own 0.47% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Pinnacle Bancorp Inc. raised its position in Best Buy by 108.5% in 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 during the period. Oliver Lagore Vanvalin Investment Group purchased a new position in Best Buy in the second quarter valued at about $26,000. Vermillion Wealth Management Inc. purchased a new position in Best Buy in the fourth quarter valued at about $31,000. Grove Bank & Trust raised its position in Best Buy by 67.1% in the first quarter. Grove Bank & Trust now owns 431 shares of the technology retailer's stock valued at $32,000 after purchasing an additional 173 shares during the period. Finally, CYBER HORNET ETFs LLC purchased a new position in Best Buy in the second quarter valued at about $33,000. 80.96% of the stock is 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.

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