Jacobs Levy Equity Management Inc. Buys New Holdings in Best Buy Co., Inc. $BBY

Key Points

• Jacobs Levy Equity Management Inc. acquired a new stake in Best Buy Co., Inc., purchasing 24,886 shares valued at approximately $1.83 million.
• Best Buy's quarterly earnings surpassed expectations, reporting $1.28 EPS on revenue of $9.44 billion, which is above the consensus estimates.
• The company announced a quarterly dividend of $0.95 per share, resulting in an annual dividend yield of 5.0%, despite a payout ratio exceeding 100%.

Jacobs Levy Equity Management Inc. bought a new stake in shares of Best Buy Co., Inc. (NYSE:BBY - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 24,886 shares of the technology retailer's stock, valued at approximately $1,832,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Gotham Asset Management LLC raised its stake in Best Buy by 83.5% during the 1st quarter. Gotham Asset Management LLC now owns 161,505 shares of the technology retailer's stock valued at $11,888,000 after purchasing an additional 73,491 shares during the period. DoubleLine ETF Adviser LP bought a new stake in Best Buy during the 1st quarter valued at approximately $354,000. Cinctive Capital Management LP increased its stake in Best Buy by 1,754.5% in the 1st quarter. Cinctive Capital Management LP now owns 60,123 shares of the technology retailer's stock worth $4,426,000 after acquiring an additional 56,881 shares during the last quarter. AQR Capital Management LLC increased its stake in Best Buy by 36.5% in the 1st quarter. AQR Capital Management LLC now owns 2,510,476 shares of the technology retailer's stock worth $181,357,000 after acquiring an additional 671,408 shares during the last quarter. Finally, Advisors Asset Management Inc. increased its stake in Best Buy by 0.8% in the 1st quarter. Advisors Asset Management Inc. now owns 49,540 shares of the technology retailer's stock worth $3,647,000 after acquiring an additional 381 shares during the last quarter. Institutional investors own 80.96% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Guggenheim reaffirmed a "buy" rating and issued a $90.00 price objective on shares of Best Buy in a research note on Friday, August 29th. UBS Group reduced their price objective on Best Buy from $95.00 to $90.00 and set a "buy" rating on the stock in a research note on Friday, May 30th. Piper Sandler reaffirmed a "neutral" rating and issued a $75.00 price objective (down previously from $82.00) on shares of Best Buy in a research note on Monday, July 14th. Loop Capital reduced their price objective on Best Buy from $90.00 to $80.00 and set a "buy" rating on the stock in a research note on Friday, May 30th. Finally, JPMorgan Chase & Co. lifted their price objective on Best Buy from $88.00 to $89.00 and gave the stock an "overweight" rating in a research note on Friday, August 29th. Nine analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $82.59.

Best Buy Stock Down 0.5%

Shares of BBY opened at $76.66 on Thursday. The company has a market cap of $16.11 billion, a PE ratio of 21.18, a P/E/G ratio of 2.03 and a beta of 1.19. The business has a fifty day moving average of $70.98 and a 200 day moving average of $70.68. Best Buy Co., Inc. has a 52-week low of $54.99 and a 52-week high of $103.48. The company has a quick ratio of 0.36, a current ratio of 1.04 and a debt-to-equity ratio of 0.43.

Best Buy (NYSE:BBY - Get Free Report) last issued its quarterly earnings results on Thursday, August 28th. The technology retailer reported $1.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.22 by $0.06. The company had revenue of $9.44 billion during the quarter, compared to the consensus estimate of $9.23 billion. Best Buy had a return on equity of 47.32% and a net margin of 1.87%.Best Buy's revenue was up 1.6% on a year-over-year basis. During the same period last year, the company earned $1.34 earnings per share. Best Buy has set its FY 2026 guidance at 6.150-6.300 EPS. On average, sell-side analysts expect that Best Buy Co., Inc. will post 6.18 EPS for the current year.

Best Buy Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Thursday, September 18th will be issued a dividend of $0.95 per share. The ex-dividend date is Thursday, September 18th. This represents a $3.80 dividend on an annualized basis and a yield of 5.0%. Best Buy's payout ratio is presently 104.97%.

Insider Buying and Selling at Best Buy

In other Best Buy news, Chairman Richard M. Schulze sold 196,100 shares of the company's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $74.00, for a total value of $14,511,400.00. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Mathew Watson sold 3,715 shares of the company's stock in a transaction on Friday, August 29th. The shares were sold at an average price of $74.07, for a total value of $275,170.05. Following the completion of the transaction, the chief accounting officer directly owned 22,150 shares in the company, valued at $1,640,650.50. This trade represents a 14.36% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 201,833 shares of company stock worth $14,941,472 in the last ninety days. 0.47% of the stock is currently owned by corporate insiders.

Best Buy 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.

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