Best Buy Co., Inc. (BBY) - What Are Researchers Saying About This Stock?

Key Points

• Analysts are broadly neutral: Best Buy has an average “Hold” rating from 21 firms, and the average 12-month price target is $86.15.
• Latest quarterly results beat estimates: Best Buy reported adjusted earnings of $1.47 per share and revenue of $9.78 billion, ahead of analyst expectations; revenue increased 3.6% year over year.
• The dividend offers a 4.1% yield: The quarterly payout is $0.96 per share, or $3.84 annualized. Two company insiders also recently sold shares.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) has earned an average rating of "Hold" from the twenty-one ratings firms that are presently covering the company, Marketbeat.com reports. Two investment analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation, six have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $86.15.

A number of equities analysts recently issued reports on the company. Telsey Advisory Group increased their price objective on Best Buy from $90.00 to $95.00 and gave the stock an "outperform" rating in a report on Tuesday, August 4th. Jefferies Financial Group cut Best Buy from a "buy" rating to a "hold" rating and lowered their target price for the company from $89.00 to $85.00 in a research report on Wednesday, August 5th. The Goldman Sachs Group lifted their target price on Best Buy from $62.00 to $71.00 and gave the company a "sell" rating in a research note on Friday, August 28th. Wall Street Zen upgraded Best Buy from a "hold" rating to a "buy" rating in a research report on Sunday, October 11th. Finally, Citigroup boosted their price target on Best Buy from $79.00 to $88.00 and gave the stock a "neutral" rating in a research report on Thursday, August 13th.

Best Buy Trading Down 2.6%

Shares of NYSE:BBY opened at $93.65 on Wednesday. The company has a quick ratio of 0.41, a current ratio of 1.12 and a debt-to-equity ratio of 0.36. The company's 50-day moving average price is $90.69 and its 200 day moving average price is $75.61. The company has a market cap of $19.64 billion, a PE ratio of 15.58, a P/E/G ratio of 2.40 and a beta of 1.20. Best Buy has a fifty-two week low of $55.10 and a fifty-two week high of $100.58.

Best Buy (NYSE:BBY - Get Free Report) last posted its earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping the consensus estimate of $1.39 by $0.08. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The firm had revenue of $9.78 billion during the quarter, compared to analysts' expectations of $9.59 billion. During the same quarter in the prior year, the firm earned $1.28 EPS. Best Buy's quarterly revenue was up 3.6% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Sell-side analysts anticipate that Best Buy will post 6.81 earnings per share for the current year.

Best Buy Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 8th. Investors of record on Thursday, September 17th were paid a dividend of $0.96 per share. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date was Thursday, September 17th. Best Buy's payout ratio is currently 63.89%.

Insider Transactions at Best Buy

In related news, EVP Kathleen Scarlett sold 116,062 shares of the company's stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $92.15, for a total value of $10,695,113.30. Following the completion of the sale, the executive vice president owned 116,173 shares of the company's stock, valued at $10,705,341.95. This represents a 49.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman Richard Schulze sold 300,000 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $92.51, for a total transaction of $27,753,000.00. The disclosure for this sale is available in the SEC filing. 0.50% of the stock is owned by insiders.

Institutional Trading of Best Buy

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Almanack Investment Partners LLC. acquired a new stake in shares of Best Buy during the third quarter worth $1,565,000. Means Investment CO. Inc. purchased a new stake in shares of Best Buy during the third quarter valued at $11,162,000. Paragon Advisors LLC purchased a new stake in shares of Best Buy during the third quarter valued at $319,000. Brighton Jones LLC boosted its position in shares of Best Buy by 178.8% in the 3rd quarter. Brighton Jones LLC now owns 32,484 shares of the technology retailer's stock valued at $2,866,000 after purchasing an additional 20,834 shares during the period. Finally, Candriam S.C.A. boosted its position in shares of Best Buy by 41.2% in the 3rd quarter. Candriam S.C.A. now owns 64,038 shares of the technology retailer's stock valued at $5,417,000 after purchasing an additional 18,697 shares during the period. 80.96% of the stock is currently owned by institutional investors.

About Best Buy

Best Buy Co, Inc is a specialty retailer of technology products and services headquartered in Richfield, Minnesota. The company sells consumer electronics, computing and mobile products, entertainment products, appliances, furniture, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology-related services, including product installation, repair, technical support, delivery, and in-home consultation. Its services are offered through brands and operations such as Geek Squad, while the company also provides membership and protection programs designed to support customers after purchase.

The company serves customers primarily in the United States and Canada.

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