Federated Hermes Inc. Increases Stock Position in Best Buy Co., Inc. (NYSE:BBY)

Key Points

• Federated Hermes Inc. increased its stake in Best Buy Co., Inc. by 3.3%, owning approximately $122.58 million after acquiring an additional 52,550 shares.
• Best Buy recently declared a quarterly dividend of $0.95 per share, resulting in a yield of 5.60% and a payout ratio of 92.91%.
• Several analysts have decreased their price targets for Best Buy, with Wells Fargo lowering its target from $75.00 to $67.00, indicating a cautious outlook for the stock's performance.

Federated Hermes Inc. increased its position in shares of Best Buy Co., Inc. (NYSE:BBY - Free Report) by 3.3% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,665,228 shares of the technology retailer's stock after purchasing an additional 52,550 shares during the period. Federated Hermes Inc. owned 0.79% of Best Buy worth $122,577,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the stock. Mariner LLC increased its holdings in Best Buy by 0.3% in the 4th quarter. Mariner LLC now owns 43,215 shares of the technology retailer's stock valued at $3,708,000 after acquiring an additional 129 shares during the last quarter. LRI Investments LLC lifted its holdings in shares of Best Buy by 36.3% in the 4th quarter. LRI Investments LLC now owns 529 shares of the technology retailer's stock worth $45,000 after acquiring an additional 141 shares during the last quarter. Prosperity Consulting Group LLC grew its stake in Best Buy by 6.4% in the 4th quarter. Prosperity Consulting Group LLC now owns 2,404 shares of the technology retailer's stock worth $206,000 after acquiring an additional 145 shares in the last quarter. MassMutual Private Wealth & Trust FSB grew its stake in Best Buy by 25.6% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 721 shares of the technology retailer's stock worth $53,000 after acquiring an additional 147 shares in the last quarter. Finally, HB Wealth Management LLC grew its stake in Best Buy by 2.4% in the 1st quarter. HB Wealth Management LLC now owns 6,348 shares of the technology retailer's stock worth $467,000 after acquiring an additional 149 shares in the last quarter. 80.96% of the stock is owned by hedge funds and other institutional investors.

Best Buy Price Performance

Shares of NYSE BBY traded down $1.00 during mid-day trading on Friday, reaching $64.06. The company's stock had a trading volume of 1,818,252 shares, compared to its average volume of 3,666,553. The stock has a 50-day moving average of $69.45 and a two-hundred day moving average of $73.46. The stock has a market capitalization of $13.54 billion, a P/E ratio of 15.66, a P/E/G ratio of 1.74 and a beta of 1.24. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.32 and a current ratio of 1.02. Best Buy Co., Inc. has a 1-year low of $54.99 and a 1-year high of $103.71.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings data on Thursday, May 29th. The technology retailer reported $1.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.06. Best Buy had a net margin of 2.13% and a return on equity of 46.40%. The firm had revenue of $8.77 billion during the quarter, compared to analysts' expectations of $8.77 billion. During the same period last year, the business earned $1.20 earnings per share. Best Buy's revenue was down .9% compared to the same quarter last year. On average, equities research analysts anticipate that Best Buy Co., Inc. will post 6.18 EPS for the current fiscal year.

Best Buy Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Investors of record on Thursday, June 19th were given a dividend of $0.95 per share. This represents a $3.80 annualized dividend and a yield of 5.9%. The ex-dividend date was Wednesday, June 18th. Best Buy's dividend payout ratio (DPR) is presently 92.91%.

Analyst Ratings Changes

BBY has been the subject of several research reports. Citigroup reaffirmed a "neutral" rating and issued a $70.00 price target (down previously from $93.00) on shares of Best Buy in a research report on Thursday, April 3rd. Wells Fargo & Company cut their price target on shares of Best Buy from $75.00 to $67.00 and set an "equal weight" rating on the stock in a research note on Friday, May 30th. Guggenheim reaffirmed a "buy" rating and issued a $90.00 price objective on shares of Best Buy in a report on Tuesday, June 10th. Telsey Advisory Group reaffirmed an "outperform" rating and issued a $90.00 price objective on shares of Best Buy in a report on Friday, May 30th. Finally, BNP Paribas raised shares of Best Buy to a "hold" rating in a report on Friday, May 30th. One analyst has rated the stock with a sell rating, twelve have given a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $85.72.

Insider Transactions at Best Buy

In related news, Chairman Richard M. Schulze sold 729,201 shares of the firm's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $72.95, for a total transaction of $53,195,212.95. Following the completion of the sale, the chairman directly owned 196,100 shares in the company, valued at approximately $14,305,495. This trade represents a 78.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.47% of the company's stock.

Best Buy Company Profile

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.