Best Buy Co., Inc. $BBY Stock Position Boosted by KLCM Advisors Inc.

Key Points

• KLCM Advisors Inc. increased its Best Buy stake by 19.4% in the fourth quarter, bringing its holdings to 126,899 shares valued at about $8.49 million.
• Best Buy reported better-than-expected quarterly earnings of $2.61 per share, though revenue came in slightly below estimates and declined 1.0% year over year.
• The company raised its quarterly dividend to $0.96 per share, while analysts remain cautious overall with a consensus rating of Hold and an average price target of $71.75.

KLCM Advisors Inc. boosted its stake in Best Buy Co., Inc. (NYSE:BBY - Free Report) by 19.4% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 126,899 shares of the technology retailer's stock after buying an additional 20,626 shares during the period. KLCM Advisors Inc. owned 0.06% of Best Buy worth $8,493,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Vanguard Group Inc. grew its position in Best Buy by 1.3% in the 4th quarter. Vanguard Group Inc. now owns 24,255,320 shares of the technology retailer's stock valued at $1,623,409,000 after buying an additional 307,905 shares in the last quarter. AQR Capital Management LLC grew its position in Best Buy by 99.8% in the 3rd quarter. AQR Capital Management LLC now owns 6,997,871 shares of the technology retailer's stock valued at $525,120,000 after buying an additional 3,496,254 shares in the last quarter. Northern Trust Corp grew its position in Best Buy by 5.5% in the 3rd quarter. Northern Trust Corp now owns 2,888,664 shares of the technology retailer's stock valued at $218,441,000 after buying an additional 150,871 shares in the last quarter. Bank of New York Mellon Corp boosted its position in shares of Best Buy by 2.3% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,754,844 shares of the technology retailer's stock valued at $132,701,000 after purchasing an additional 39,026 shares in the last quarter. Finally, Legal & General Group Plc boosted its position in shares of Best Buy by 0.3% during the 3rd quarter. Legal & General Group Plc now owns 1,661,024 shares of the technology retailer's stock valued at $125,607,000 after purchasing an additional 5,130 shares in the last quarter. Institutional investors own 80.96% of the company's stock.

Best Buy Stock Performance

Shares of BBY opened at $57.64 on Tuesday. Best Buy Co., Inc. has a one year low of $56.68 and a one year high of $84.99. The company has a 50-day moving average of $62.85 and a two-hundred day moving average of $68.71. The stock has a market cap of $12.14 billion, a price-to-earnings ratio of 11.44, a PEG ratio of 1.47 and a beta of 1.22. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.11 and a quick ratio of 0.43.

Best Buy (NYSE:BBY - Get Free Report) last announced its earnings results on Tuesday, March 3rd. The technology retailer reported $2.61 EPS for the quarter, topping the consensus estimate of $2.48 by $0.13. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The company had revenue of $13.81 billion during the quarter, compared to analysts' expectations of $13.96 billion. During the same period last year, the company posted $2.58 earnings per share. The business's revenue for the quarter was down 1.0% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. On average, equities research analysts expect that Best Buy Co., Inc. will post 6.5 earnings per share for the current year.

Best Buy Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 24th were issued a $0.96 dividend. The ex-dividend date was Tuesday, March 24th. This is a positive change from Best Buy's previous quarterly dividend of $0.95. This represents a $3.84 annualized dividend and a dividend yield of 6.7%. Best Buy's dividend payout ratio is 76.19%.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on BBY shares. HSBC reduced their price objective on shares of Best Buy from $96.00 to $85.00 in a research report on Thursday, February 26th. Truist Financial reduced their price objective on shares of Best Buy from $73.00 to $66.00 and set a "hold" rating for the company in a research report on Tuesday, March 3rd. Morgan Stanley reduced their price objective on shares of Best Buy from $76.00 to $72.00 and set an "equal weight" rating for the company in a research report on Wednesday, March 4th. Telsey Advisory Group reduced their price objective on shares of Best Buy from $95.00 to $80.00 and set an "outperform" rating for the company in a research report on Wednesday, March 4th. Finally, Jefferies Financial Group reduced their price objective on shares of Best Buy from $94.00 to $89.00 and set a "buy" rating for the company in a research report on Monday, February 9th. Nine investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Best Buy has a consensus rating of "Hold" and an average price target of $71.75.

Insider Buying and Selling

In other Best Buy news, insider Todd G. Hartman sold 5,339 shares of the firm's stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $64.02, for a total value of $341,802.78. Following the completion of the transaction, the insider directly owned 44,098 shares in the company, valued at $2,823,153.96. This trade represents a 10.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Corie S. Barry sold 42,869 shares of the firm's stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total transaction of $2,744,473.38. Following the completion of the transaction, the chief executive officer owned 523,138 shares of the company's stock, valued at approximately $33,491,294.76. The trade was a 7.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 77,247 shares of company stock valued at $4,945,353. Company insiders own 0.59% of the company's stock.

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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