Genus Capital Management Inc. Makes New Investment in Best Buy Co., Inc. $BBY

Key Points

• Genus Capital Management opened a new position in Best Buy during the fourth quarter, buying 24,740 shares worth about $1.66 million.
• Wall Street sentiment on Best Buy is mixed: analysts have an average “Hold” rating with a consensus price target of $70.80, while several firms recently cut or adjusted their targets.
• Best Buy’s latest quarterly results beat EPS expectations, and the company recently raised its dividend to $0.96 per quarter, but investors remain cautious ahead of upcoming earnings amid concerns about product shortages and a CEO transition.

Genus Capital Management Inc. acquired a new position in shares of Best Buy Co., Inc. (NYSE:BBY - Free Report) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 24,740 shares of the technology retailer's stock, valued at approximately $1,656,000.

A number of other hedge funds have also recently added to or reduced their stakes in BBY. Huntington National Bank boosted its stake in shares of Best Buy by 12.0% in the 3rd quarter. Huntington National Bank now owns 1,298 shares of the technology retailer's stock valued at $98,000 after purchasing an additional 139 shares during the last quarter. Linden Thomas Advisory Services LLC boosted its stake in shares of Best Buy by 0.9% in the 4th quarter. Linden Thomas Advisory Services LLC now owns 16,637 shares of the technology retailer's stock valued at $1,114,000 after purchasing an additional 152 shares during the last quarter. Applied Finance Capital Management LLC boosted its position in shares of Best Buy by 3.8% in the 4th quarter. Applied Finance Capital Management LLC now owns 4,270 shares of the technology retailer's stock worth $286,000 after purchasing an additional 157 shares during the last quarter. International Private Wealth Advisors LLC boosted its position in shares of Best Buy by 5.2% in the 4th quarter. International Private Wealth Advisors LLC now owns 3,345 shares of the technology retailer's stock worth $224,000 after purchasing an additional 165 shares during the last quarter. Finally, J. Team Financial Inc. boosted its stake in Best Buy by 4.2% during the 4th quarter. J. Team Financial Inc. now owns 4,251 shares of the technology retailer's stock worth $285,000 after acquiring an additional 171 shares during the last quarter. Institutional investors own 80.96% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. BNP Paribas Exane lifted their price objective on shares of Best Buy from $68.00 to $74.00 and gave the stock a "neutral" rating in a research note on Wednesday, March 4th. Telsey Advisory Group cut their price target on shares of Best Buy from $95.00 to $80.00 and set an "outperform" rating on the stock in a research note on Wednesday, March 4th. Evercore set a $65.00 price target on shares of Best Buy in a research note on Tuesday, April 14th. Citigroup cut their price target on shares of Best Buy from $69.00 to $60.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 12th. Finally, HSBC cut their price target on shares of Best Buy from $96.00 to $85.00 in a research note on Thursday, February 26th. Nine equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $70.80.

Insider Buying and Selling

In other news, CFO Matthew M. Bilunas sold 11,356 shares of Best Buy 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 in the company, valued at $4,922,113.68. This trade represents a 12.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Jason J. Bonfig sold 6,336 shares of Best Buy stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $405,630.72. Following the completion of the sale, the executive vice president owned 79,137 shares in the company, valued at $5,066,350.74. This trade represents a 7.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 77,247 shares of company stock valued at $4,945,353 over the last ninety days. Insiders own 0.47% of the company's stock.

Key Headlines Impacting Best Buy

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

• Positive Sentiment: Best Buy is being viewed as likely to post solid first-quarter results, with analysts expecting in-line comparable sales and year-over-year earnings growth, which could help support the stock if the company meets those expectations. Best Buy Poised for In-Line First-Quarter Comparable Sales, Wedbush Says
• Positive Sentiment: Recent momentum has improved, with the stock outperforming over the past week even though it remains down year to date, suggesting investors may be positioning for the upcoming report. A Look At Best Buy Valuation As Earnings Expectations And Cautious Sentiment Shape The May 28 Report
• Neutral Sentiment: New back-to-school-style promotions in Canada, such as BMO’s student tech reward tied to Best Buy Canada, may help traffic, but the announcement appears more promotional than material for near-term earnings. Is Best Buy’s Student Tech Perks Masking Deeper Supply Chain And Leadership Questions?
• Negative Sentiment: Investor caution is rising because Best Buy is dealing with product shortages and an upcoming CEO transition, both of which could cloud the earnings outlook and pressure sentiment if management gives a conservative forecast. Is Best Buy’s Student Tech Perks Masking Deeper Supply Chain And Leadership Questions?
• Negative Sentiment: Several previews note that Best Buy may not have the best setup for an earnings beat, which could limit upside if results only match expectations rather than exceed them. Best Buy (BBY) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

Best Buy Stock Performance

Shares of BBY opened at $61.53 on Monday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.43 and a current ratio of 1.11. Best Buy Co., Inc. has a twelve month low of $55.10 and a twelve month high of $84.99. The firm has a market cap of $12.97 billion, a P/E ratio of 12.21, a PEG ratio of 1.52 and a beta of 1.22. The firm's 50 day moving average price is $61.72 and its two-hundred day moving average price is $67.18.

Best Buy (NYSE:BBY - Get Free Report) last posted its quarterly earnings data on Tuesday, March 3rd. The technology retailer reported $2.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $13.96 billion. During the same period last year, the company earned $2.58 earnings per share. The firm's revenue was down 1.0% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. On average, analysts forecast that Best Buy Co., Inc. will post 6.5 EPS for the current fiscal year.

Best Buy Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, April 14th. Stockholders of record on Tuesday, March 24th were issued a $0.96 dividend. This represents a $3.84 dividend on an annualized basis and a dividend yield of 6.2%. This is a boost from Best Buy's previous quarterly dividend of $0.95. The ex-dividend date was Tuesday, March 24th. Best Buy's dividend payout ratio is 76.19%.

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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