Handelsbanken Fonder AB Buys 19,694 Shares of Best Buy Co., Inc. $BBY

Key Points

• Handelsbanken Fonder AB increased its Best Buy stake by 59.1% in the fourth quarter, buying 19,694 additional shares and bringing its total holdings to 53,000 shares worth about $3.55 million.
• Several other large institutions also added to their positions, and institutional investors now own 80.96% of Best Buy’s stock, signaling broad professional ownership.
• Best Buy reported Q4 EPS of $2.61, topping expectations, but revenue of $13.81 billion came in slightly below estimates; the company also raised its quarterly dividend to $0.96 per share, equal to a 6.2% annualized yield.

Handelsbanken Fonder AB lifted its stake in shares of Best Buy Co., Inc. (NYSE:BBY - Free Report) by 59.1% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 53,000 shares of the technology retailer's stock after acquiring an additional 19,694 shares during the period. Handelsbanken Fonder AB's holdings in Best Buy were worth $3,547,000 at the end of the most recent quarter.

Other large investors also recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Best Buy by 2.4% during the third quarter. Vanguard Group Inc. now owns 23,947,415 shares of the technology retailer's stock worth $1,810,904,000 after acquiring an additional 552,360 shares in the last quarter. Concurrent Investment Advisors LLC increased its position in shares of Best Buy by 100.6% during the fourth quarter. Concurrent Investment Advisors LLC now owns 70,280 shares of the technology retailer's stock worth $4,704,000 after acquiring an additional 35,239 shares in the last quarter. Bank of New York Mellon Corp increased its position in shares of Best Buy by 2.3% during the third quarter. Bank of New York Mellon Corp now owns 1,754,844 shares of the technology retailer's stock worth $132,701,000 after acquiring an additional 39,026 shares in the last quarter. Allianz Asset Management GmbH increased its position in shares of Best Buy by 5.7% during the third quarter. Allianz Asset Management GmbH now owns 1,639,202 shares of the technology retailer's stock worth $123,956,000 after acquiring an additional 89,057 shares in the last quarter. Finally, National Pension Service increased its position in shares of Best Buy by 60.5% during the third quarter. National Pension Service now owns 112,604 shares of the technology retailer's stock worth $8,515,000 after acquiring an additional 42,465 shares in the last quarter. Institutional investors own 80.96% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Weiss Ratings downgraded shares of Best Buy from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, May 7th. Telsey Advisory Group decreased their target price 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. Truist Financial decreased their target price 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. BNP Paribas Exane raised their target price on shares of Best Buy from $68.00 to $74.00 and gave the company a "neutral" rating in a research report on Wednesday, March 4th. Finally, Guggenheim reaffirmed a "buy" rating and issued a $90.00 target price on shares of Best Buy in a research report on Wednesday, March 4th. Nine analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Best Buy has an average rating of "Hold" and an average target price of $70.80.

Best Buy Stock Up 0.6%

Best Buy stock opened at $61.53 on Friday. The company has a market cap of $12.97 billion, a P/E ratio of 12.21, a price-to-earnings-growth ratio of 1.52 and a beta of 1.22. Best Buy Co., Inc. has a 1-year low of $55.10 and a 1-year high of $84.99. The company has a fifty day simple moving average of $61.72 and a 200 day simple moving average of $67.28. The company has a current ratio of 1.11, a quick ratio of 0.43 and a debt-to-equity ratio of 0.39.

Best Buy (NYSE:BBY - Get Free Report) last released its earnings results on Tuesday, March 3rd. The technology retailer reported $2.61 earnings per share for the quarter, beating analysts' consensus estimates of $2.48 by $0.13. The business had revenue of $13.81 billion during the quarter, compared to the consensus estimate of $13.96 billion. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The firm's revenue for the quarter was down 1.0% compared to the same quarter last year. During the same quarter last year, the firm earned $2.58 earnings per share. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Research analysts anticipate that Best Buy Co., Inc. will post 6.5 earnings per share for the current fiscal year.

Best Buy Increases Dividend

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

Key Best Buy News

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

Insider Transactions at Best Buy

In other Best Buy news, CAO Mathew Watson sold 3,298 shares of the stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total value of $211,137.96. Following the completion of the sale, the chief accounting officer owned 23,192 shares in the company, valued at $1,484,751.84. This trade represents a 12.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Matthew M. Bilunas sold 11,356 shares of the stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $727,011.12. Following the completion of the sale, the chief financial officer owned 76,884 shares of the company's stock, valued at approximately $4,922,113.68. This represents a 12.87% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 77,247 shares of company stock valued at $4,945,353. 0.47% of the stock is owned by company insiders.

Best Buy Company 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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