Healthcare of Ontario Pension Plan Trust Fund Boosts Stake in Best Buy Co., Inc. $BBY

Key Points

• Healthcare of Ontario Pension Plan Trust Fund increased its Best Buy stake by 66.5% in the fourth quarter, ending with 1,031,724 shares valued at about $69.1 million.
• Best Buy’s latest earnings beat expectations, reporting $1.28 EPS on revenue of $8.94 billion, while management also outlined FY2027 EPS guidance of 6.3 to 6.6.
• Analysts remain cautious overall, with a consensus rating of Hold and an average price target of $79.05, even as the stock recently traded near $78.70 and the company announced a quarterly dividend of $0.96 per share.

Healthcare of Ontario Pension Plan Trust Fund grew its position in shares of Best Buy Co., Inc. (NYSE:BBY - Free Report) by 66.5% during the fourth quarter, according to its most recent filing with the SEC. The firm owned 1,031,724 shares of the technology retailer's stock after acquiring an additional 411,943 shares during the period. Healthcare of Ontario Pension Plan Trust Fund owned about 0.49% of Best Buy worth $69,053,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in BBY. Torren Management LLC purchased a new position in shares of Best Buy during the 4th quarter worth approximately $25,000. Palisade Asset Management LLC purchased a new position in shares of Best Buy during the 3rd quarter worth approximately $25,000. Hillsdale Investment Management Inc. purchased a new position in shares of Best Buy during the 4th quarter worth approximately $29,000. Quest 10 Wealth Builders Inc. grew its holdings in shares of Best Buy by 239.2% during the 4th quarter. Quest 10 Wealth Builders Inc. now owns 441 shares of the technology retailer's stock worth $30,000 after acquiring an additional 311 shares during the period. Finally, Activest Wealth Management grew its holdings in shares of Best Buy by 1,247.1% during the 4th quarter. Activest Wealth Management now owns 458 shares of the technology retailer's stock worth $31,000 after acquiring an additional 424 shares during the period. Hedge funds and other institutional investors own 80.96% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. UBS Group reiterated a "neutral" rating and set a $86.00 target price (up from $85.00) on shares of Best Buy in a report on Friday, May 29th. Wedbush upped their price target on Best Buy from $70.00 to $75.00 and gave the stock a "neutral" rating in a research note on Friday, May 29th. Piper Sandler restated a "neutral" rating and issued a $77.00 price target on shares of Best Buy in a research note on Thursday, May 28th. Morgan Stanley upped their price target on Best Buy from $72.00 to $80.00 and gave the stock an "equal weight" rating in a research note on Friday, May 29th. Finally, KeyCorp restated a "sector weight" rating on shares of Best Buy in a research note on Wednesday, March 4th. Six analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $79.05.

Insiders Place Their Bets

In related 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 value of $38,086,642.00. Following the transaction, the chairman directly owned 10,930,586 shares of the company's stock, valued at approximately $832,036,206.32. This represents a 4.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Corie S. Barry sold 42,869 shares of the company's 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 $2,744,473.38. Following the completion of the transaction, the chief executive officer directly owned 523,138 shares in the company, valued at $33,491,294.76. This trade represents a 7.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 579,381 shares of company stock worth $43,163,654 in the last three months. Corporate insiders own 0.50% of the company's stock.

Best Buy Stock Performance

Best Buy stock opened at $78.70 on Monday. The company has a quick ratio of 0.40, a current ratio of 1.12 and a debt-to-equity ratio of 0.38. The company has a market capitalization of $16.59 billion, a P/E ratio of 14.57, a PEG ratio of 2.09 and a beta of 1.30. The stock's 50 day moving average is $64.51 and its 200 day moving average is $66.70. Best Buy Co., Inc. has a twelve month low of $55.10 and a twelve month high of $84.99.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The technology retailer reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.23 by $0.05. The business had revenue of $8.94 billion for the quarter, compared to analysts' expectations of $8.82 billion. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The firm's quarterly revenue was up 1.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.15 EPS. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. On average, equities research analysts predict that Best Buy Co., Inc. will post 6.56 earnings per share for the current fiscal year.

Best Buy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 18th will be given a $0.96 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $3.84 annualized dividend and a yield of 4.9%. Best Buy's dividend payout ratio is 71.11%.

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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