Hsbc Holdings PLC Buys 1,030,544 Shares of Best Buy Co., Inc. $BBY

Key Points

• HSBC Holdings PLC more than doubled its Best Buy stake in the fourth quarter, buying 1,030,544 additional shares and bringing its total holding to 2,020,539 shares, or about 0.97% of the company.
• Best Buy reported better-than-expected quarterly results, with EPS of $1.28 versus $1.23 expected and revenue of $8.94 billion versus $8.82 billion expected. The company also raised its FY2027 guidance range to 6.300-6.600 EPS.
• The company announced a quarterly dividend of $0.96 per share, implying a 5.1% annual yield, while analyst sentiment remains mixed with a consensus rating of Hold and an average price target of $79.05.

Hsbc Holdings PLC increased its stake in shares of Best Buy Co., Inc. (NYSE:BBY - Free Report) by 104.1% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 2,020,539 shares of the technology retailer's stock after acquiring an additional 1,030,544 shares during the period. Hsbc Holdings PLC owned about 0.97% of Best Buy worth $135,685,000 as of its most recent filing with the SEC.

Other large investors have also recently bought and sold shares of the company. Bayban acquired a new position in shares of Best Buy during the 4th quarter worth approximately $33,000. Tulsa Wealth Advisors INC acquired a new stake in shares of Best Buy in the 4th quarter valued at approximately $2,851,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Best Buy in the fourth quarter valued at $404,000. Avory & Company LLC increased its holdings in Best Buy by 6.4% during the fourth quarter. Avory & Company LLC now owns 3,479 shares of the technology retailer's stock worth $233,000 after buying an additional 210 shares during the last quarter. Finally, SG Trading Solutions LLC acquired a new position in Best Buy during the fourth quarter worth $207,000. 80.96% of the stock is owned by institutional investors and hedge funds.

Best Buy Trading Up 0.2%

BBY stock opened at $74.89 on Monday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.12 and a quick ratio of 0.40. The company has a fifty day moving average price of $65.59 and a two-hundred day moving average price of $66.55. Best Buy Co., Inc. has a one year low of $55.10 and a one year high of $84.99. The stock has a market cap of $15.78 billion, a price-to-earnings ratio of 13.87, a price-to-earnings-growth ratio of 1.99 and a beta of 1.30.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The technology retailer reported $1.28 EPS for the quarter, beating the consensus estimate of $1.23 by $0.05. The firm 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%. The company's quarterly revenue was up 1.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.15 earnings per share. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Equities analysts anticipate that Best Buy Co., Inc. will post 6.56 EPS for the current year.

Best Buy Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th will be issued a $0.96 dividend. This represents a $3.84 annualized dividend and a yield of 5.1%. The ex-dividend date of this dividend is Thursday, June 18th. Best Buy's dividend payout ratio is currently 71.11%.

Insider Activity

In other 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 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Mathew Watson sold 1,784 shares of the company's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $73.80, for a total value of $131,659.20. Following the completion of the transaction, the chief accounting officer directly owned 21,630 shares in the company, valued at $1,596,294. The trade was a 7.62% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 583,533 shares of company stock worth $44,584,972. Insiders own 0.50% of the company's stock.

Analyst Ratings Changes

A number of brokerages have commented on BBY. Jefferies Financial Group increased their price target on shares of Best Buy from $83.00 to $89.00 and gave the company a "buy" rating in a research note on Thursday, May 28th. Telsey Advisory Group set a $90.00 price objective on shares of Best Buy and gave the stock an "outperform" rating in a research note on Friday, May 29th. Truist Financial upped their target price on shares of Best Buy from $66.00 to $81.00 and gave the company a "hold" rating in a report on Friday, May 29th. Evercore raised their target price on shares of Best Buy from $65.00 to $85.00 in a research note on Friday, May 29th. Finally, Daiwa Securities Group lifted their price target on Best Buy from $68.00 to $77.00 and gave the stock a "neutral" rating in a report on Tuesday, June 2nd. Six research 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.com, Best Buy has a consensus rating of "Hold" and an average target price of $79.05.

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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