AXQ Capital LP Boosts Position in Best Buy Co., Inc. $BBY

Key Points

• AXQ Capital LP increased its Best Buy stake by 519% in the fourth quarter, ending with 17,178 shares worth about $1.15 million.
• Best Buy reported better-than-expected earnings recently, with revenue and EPS both beating estimates and management maintaining its FY2027 outlook, which has supported investor optimism.
• Despite mixed insider activity, Wall Street analysts remain cautious overall: Best Buy’s consensus rating is still Hold, though several firms recently raised price targets, and the stock also offers a 5.3% dividend yield.

AXQ Capital LP grew its holdings in Best Buy Co., Inc. (NYSE:BBY - Free Report) by 519.0% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 17,178 shares of the technology retailer's stock after acquiring an additional 14,403 shares during the period. AXQ Capital LP's holdings in Best Buy were worth $1,150,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the business. Torren Management LLC acquired a new stake in Best Buy during the fourth quarter worth about $25,000. Palisade Asset Management LLC purchased a new position in shares of Best Buy during the 3rd quarter valued at approximately $25,000. Hillsdale Investment Management Inc. acquired a new stake in Best Buy during the fourth quarter valued at $29,000. Quest 10 Wealth Builders Inc. increased its holdings in Best Buy by 239.2% in the fourth quarter. Quest 10 Wealth Builders Inc. now owns 441 shares of the technology retailer's stock valued at $30,000 after buying an additional 311 shares in the last quarter. Finally, Activest Wealth Management increased its holdings in Best Buy by 1,247.1% in the fourth quarter. Activest Wealth Management now owns 458 shares of the technology retailer's stock valued at $31,000 after buying an additional 424 shares in the last quarter. Hedge funds and other institutional investors own 80.96% of the company's stock.

Insider Buying and Selling

In other news, CFO Matthew M. Bilunas sold 11,356 shares of the business's stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total value of $727,011.12. Following the sale, the chief financial officer directly owned 76,884 shares of the company's stock, valued at approximately $4,922,113.68. The trade was a 12.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Kathleen Scarlett sold 8,049 shares of the company's stock in a transaction that occurred on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total transaction of $515,296.98. Following the completion of the transaction, the executive vice president owned 102,669 shares in the company, valued at approximately $6,572,869.38. This represents a 7.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 579,381 shares of company stock valued at $43,163,654 over the last three months. Company insiders own 0.59% of the company's stock.

More Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Daiwa Securities raised its price target on Best Buy to $77 from $68, keeping a neutral rating. The higher target suggests improved expectations for the shares and supports the recent move higher in the stock. MarketScreener
• Positive Sentiment: Best Buy’s latest earnings results were stronger than expected, with revenue and EPS beating estimates and management maintaining its fiscal 2027 outlook. That kind of execution can help support investor confidence in the stock. Yahoo Finance
• Positive Sentiment: Commentary around Best Buy’s marketplace growth, Best Buy Ads, new product launches, and an AI-laptop boost has added to optimism that the retailer can keep improving growth trends. MSN
• Neutral Sentiment: Jim Cramer highlighted Best Buy as a stock some investors may be overlooking, and other coverage noted the company’s strong year-to-date performance and attractive dividend yield. These items may help sentiment, but they are not direct catalysts. Yahoo Finance
• Negative Sentiment: Best Buy Chairman Richard M. Schulze sold 500,350 shares worth about $38.1 million, and CAO Mathew Watson also sold shares. Insider selling can sometimes weigh on investor sentiment, especially after a strong run in the stock. SEC filing
• Negative Sentiment: One market report said Best Buy stock underperformed competitors on Tuesday, which may signal that traders are rotating toward other retail names despite the company’s recent operational progress. MarketWatch

Wall Street Analysts Forecast Growth

BBY has been the topic of several recent analyst reports. Wells Fargo & Company increased their target price on shares of Best Buy from $60.00 to $65.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 28th. Morgan Stanley upped their price target on Best Buy from $72.00 to $80.00 and gave the stock an "equal weight" rating in a report on Friday, May 29th. Guggenheim reiterated a "buy" rating and set a $90.00 price target on shares of Best Buy in a research report on Friday, May 29th. DA Davidson reissued a "buy" rating and issued a $78.00 price objective on shares of Best Buy in a report on Friday, May 29th. Finally, Weiss Ratings downgraded Best Buy from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, May 7th. Six analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Best Buy currently has a consensus rating of "Hold" and a consensus target price of $79.05.

Best Buy Stock Performance

Best Buy stock opened at $72.93 on Wednesday. The firm has a 50 day simple moving average of $62.51 and a 200-day simple moving average of $66.78. The stock has a market cap of $15.37 billion, a price-to-earnings ratio of 13.50, a price-to-earnings-growth ratio of 2.00 and a beta of 1.30. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.12 and a quick ratio of 0.40. Best Buy Co., Inc. has a 1-year low of $55.10 and a 1-year high of $84.99.

Best Buy (NYSE:BBY - Get Free Report) last posted its earnings results on Thursday, May 28th. The technology retailer reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.05. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The company had revenue of $8.94 billion during the quarter, compared to analysts' expectations of $8.82 billion. During the same quarter last year, the firm earned $1.15 earnings per share. The firm's quarterly revenue was up 1.9% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. On average, analysts expect that Best Buy Co., Inc. will post 6.54 EPS for the current year.

Best Buy Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 18th will be issued a $0.96 dividend. This represents a $3.84 annualized dividend and a yield of 5.3%. The ex-dividend date is Thursday, June 18th. Best Buy's payout ratio is 71.11%.

Best Buy 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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