Jensen Investment Management Inc. Reduces Stake in Best Buy Co., Inc. (NYSE:BBY)

Key Points

• Jensen Investment Management Inc. reduced its holdings in Best Buy Co., Inc. by 16.7%, now owning 47,375 shares valued at approximately $3.49 million.
• Institutional investors own 80.96% of Best Buy's stock, with several firms increasing their positions during recent quarters.
• The company announced a quarterly dividend of $0.95 per share, yielding 5.7%, as part of its commitment to returning value to shareholders.

Jensen Investment Management Inc. reduced its position in shares of Best Buy Co., Inc. (NYSE:BBY - Free Report) by 16.7% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 47,375 shares of the technology retailer's stock after selling 9,500 shares during the quarter. Jensen Investment Management Inc.'s holdings in Best Buy were worth $3,487,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. Invesco Ltd. lifted its stake in Best Buy by 20.5% in the fourth quarter. Invesco Ltd. now owns 3,692,118 shares of the technology retailer's stock worth $316,784,000 after acquiring an additional 629,180 shares during the period. Dimensional Fund Advisors LP raised its holdings in Best Buy by 4.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,157,432 shares of the technology retailer's stock worth $270,910,000 after purchasing an additional 146,267 shares in the last quarter. Northern Trust Corp raised its holdings in Best Buy by 31.3% in the 4th quarter. Northern Trust Corp now owns 2,942,832 shares of the technology retailer's stock worth $252,495,000 after purchasing an additional 701,287 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Best Buy by 9.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,605,902 shares of the technology retailer's stock worth $223,586,000 after purchasing an additional 215,265 shares during the period. Finally, Federated Hermes Inc. boosted its stake in shares of Best Buy by 3.3% during the 1st quarter. Federated Hermes Inc. now owns 1,665,228 shares of the technology retailer's stock valued at $122,577,000 after purchasing an additional 52,550 shares in the last quarter. Hedge funds and other institutional investors own 80.96% of the company's stock.

Insider Transactions at Best Buy

In other news, Chairman Richard M. Schulze sold 729,201 shares of the firm's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $72.95, for a total transaction of $53,195,212.95. Following the sale, the chairman owned 196,100 shares of the company's stock, valued at $14,305,495. This trade represents a 78.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.47% of the company's stock.

Best Buy Stock Up 2.1%

Shares of NYSE BBY traded up $1.43 during midday trading on Friday, hitting $68.98. The stock had a trading volume of 2,441,326 shares, compared to its average volume of 3,231,870. The business's 50 day moving average is $69.15 and its 200-day moving average is $72.81. Best Buy Co., Inc. has a 52 week low of $54.99 and a 52 week high of $103.71. The company has a quick ratio of 0.32, a current ratio of 1.02 and a debt-to-equity ratio of 0.42. The company has a market cap of $14.58 billion, a P/E ratio of 16.87, a PEG ratio of 1.78 and a beta of 1.21.

Best Buy (NYSE:BBY - Get Free Report) last issued its earnings results on Thursday, May 29th. The technology retailer reported $1.15 EPS for the quarter, beating the consensus estimate of $1.09 by $0.06. Best Buy had a return on equity of 46.40% and a net margin of 2.13%. The business had revenue of $8.77 billion for the quarter, compared to the consensus estimate of $8.77 billion. During the same period last year, the business posted $1.20 EPS. The company's revenue was down .9% compared to the same quarter last year. As a group, analysts predict that Best Buy Co., Inc. will post 6.18 EPS for the current year.

Best Buy Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 10th. Shareholders of record on Thursday, June 19th were given a $0.95 dividend. The ex-dividend date of this dividend was Wednesday, June 18th. This represents a $3.80 dividend on an annualized basis and a yield of 5.5%. Best Buy's payout ratio is 92.91%.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on BBY shares. Guggenheim reissued a "buy" rating and issued a $90.00 price target on shares of Best Buy in a research note on Tuesday, June 10th. Truist Financial upped their target price on Best Buy from $64.00 to $69.00 and gave the stock a "hold" rating in a report on Friday, May 30th. DA Davidson restated a "buy" rating and issued a $110.00 target price on shares of Best Buy in a research note on Monday, April 14th. Loop Capital reduced their price target 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, UBS Group decreased their price objective on Best Buy from $95.00 to $90.00 and set a "buy" rating for the company in a report on Friday, May 30th. One analyst has rated the stock with a sell rating, twelve have assigned a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $85.72.

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.