BlackRock Inc. Makes New $1.93 Billion Investment in Best Buy Co., Inc. $BBY

Key Points

• BlackRock acquired 25.47 million Best Buy shares worth approximately $1.93 billion, giving it a 12.09% stake. Institutional investors collectively own 80.96% of the company.
• Best Buy exceeded quarterly earnings and revenue estimates, reporting $1.28 EPS and $8.94 billion in revenue, while maintaining annualized dividends of $3.84 per share, yielding about 4.3%.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $82.70 versus the stock’s reported $89.33 price; insiders sold more than $77 million in shares over the prior 90 days.

BlackRock Inc. acquired a new position in shares of Best Buy Co., Inc. (NYSE:BBY - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 25,471,955 shares of the technology retailer's stock, valued at approximately $1,932,812,000. BlackRock Inc. owned approximately 12.09% of Best Buy as of its most recent filing with the SEC.

Other hedge funds have also made changes to their positions in the company. Woodline Partners LP boosted its holdings in Best Buy by 40.1% in the first quarter. Woodline Partners LP now owns 16,436 shares of the technology retailer's stock valued at $1,210,000 after purchasing an additional 4,701 shares in the last quarter. Daiwa Securities Group Inc. lifted its position in shares of Best Buy by 4.4% during the 2nd quarter. Daiwa Securities Group Inc. now owns 29,560 shares of the technology retailer's stock worth $1,984,000 after buying an additional 1,234 shares during the last quarter. Investment Management Corp of Ontario lifted its position in shares of Best Buy by 127.7% during the 2nd quarter. Investment Management Corp of Ontario now owns 12,997 shares of the technology retailer's stock worth $872,000 after buying an additional 7,288 shares during the last quarter. Ieq Capital LLC boosted its holdings in shares of Best Buy by 155.4% in the 2nd quarter. Ieq Capital LLC now owns 160,568 shares of the technology retailer's stock valued at $10,779,000 after buying an additional 97,688 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its holdings in shares of Best Buy by 32.0% in the 2nd quarter. Alliancebernstein L.P. now owns 313,584 shares of the technology retailer's stock valued at $21,051,000 after buying an additional 76,102 shares in the last quarter. Hedge funds and other institutional investors own 80.96% of the company's stock.

Best Buy Stock Performance

Shares of Best Buy stock opened at $89.33 on Thursday. The firm's fifty day simple moving average is $81.84 and its 200-day simple moving average is $70.47. Best Buy Co., Inc. has a 12 month low of $55.10 and a 12 month high of $91.26. The stock has a market capitalization of $18.83 billion, a price-to-earnings ratio of 16.54, a PEG ratio of 2.51 and a beta of 1.29. 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 (NYSE:BBY - Get Free Report) last issued its quarterly earnings data 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. The company had revenue of $8.94 billion for the quarter, compared to the consensus estimate of $8.82 billion. Best Buy had a net margin of 2.73% and a return on equity of 48.70%. Best Buy's revenue for the quarter was up 1.9% on a year-over-year basis. During the same period last year, the firm posted $1.15 EPS. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, equities analysts forecast that Best Buy Co., Inc. will post 6.56 earnings per share for the current year.

Best Buy Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 9th. Investors of record on Thursday, June 18th were issued a dividend of $0.96 per share. The ex-dividend date of this dividend was Thursday, June 18th. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.3%. Best Buy's dividend payout ratio (DPR) is currently 71.11%.

Wall Street Analyst Weigh In

BBY has been the topic of several research analyst reports. Truist Financial upgraded shares of Best Buy from a "hold" rating to a "buy" rating and lifted their price target for the stock from $81.00 to $95.00 in a research note on Tuesday, August 11th. Jefferies Financial Group downgraded shares of Best Buy from a "buy" rating to a "hold" rating and decreased their price objective for the company from $89.00 to $85.00 in a research note on Wednesday, August 5th. JPMorgan Chase & Co. raised their price objective on Best Buy from $76.00 to $84.00 and gave the stock a "neutral" rating in a report on Friday, May 29th. Bank of America began coverage on Best Buy in a research report on Monday, August 3rd. They set an "underperform" rating and a $80.00 target price on the stock. Finally, Evercore boosted their target price on Best Buy from $65.00 to $85.00 in a report on Friday, May 29th. Five research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Best Buy has a consensus rating of "Hold" and an average price target of $82.70.

Insider Activity

In other Best Buy news, Chairman Richard M. Schulze sold 500,350 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $76.12, for a total transaction of $38,086,642.00. Following the completion of the sale, the chairman directly owned 10,930,586 shares of the company's stock, valued at $832,036,206.32. This represents a 4.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Mathew Watson sold 1,784 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $73.80, for a total value of $131,659.20. Following the sale, the chief accounting officer directly owned 21,630 shares of the company's stock, valued at $1,596,294. The trade was a 7.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,002,134 shares of company stock worth $77,283,527 in the last 90 days. 0.50% of the stock is currently owned by insiders.

About Best Buy

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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