Sterling Capital Management LLC Acquires 34,749 Shares of Best Buy Co., Inc. $BBY

Key Points

• Sterling Capital Management increased its Best Buy stake by 380.1% in the third quarter, purchasing 34,749 additional shares for a total of 43,890 shares valued at approximately $3.74 million.
• Institutional investors own 80.96% of Best Buy, while company insiders own 0.50%; notable insider sales included 300,000 shares sold by Chairman Richard Schulze and 116,062 shares sold by EVP Kathleen Scarlett.
• Best Buy exceeded quarterly earnings and revenue expectations, reporting $1.47 in EPS on $9.78 billion in revenue. Analysts maintain a consensus “Hold” rating with an $85.90 target price, while the company pays a quarterly dividend of $0.96, yielding about 3.8%.

Sterling Capital Management LLC lifted its holdings in Best Buy Co., Inc. (NYSE:BBY - Free Report) by 380.1% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 43,890 shares of the technology retailer's stock after purchasing an additional 34,749 shares during the period. Sterling Capital Management LLC's holdings in Best Buy were worth $3,744,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. BlackRock Inc. bought a new stake in Best Buy during the second quarter worth approximately $1,932,812,000. Bank of New York Mellon Corp acquired a new position in Best Buy in the second quarter worth approximately $174,893,000. Deutsche Bank AG acquired a new position in Best Buy in the second quarter worth approximately $116,003,000. Legal & General Group Plc acquired a new position in Best Buy in the second quarter worth approximately $83,427,000. Finally, Hsbc Holdings PLC bought a new position in shares of Best Buy in the second quarter valued at $79,627,000. 80.96% of the stock is currently owned by institutional investors.

Insider Activity

In other Best Buy news, Chairman Richard Schulze sold 300,000 shares of the firm's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $92.51, for a total transaction of $27,753,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kathleen Scarlett sold 116,062 shares of Best Buy stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $92.15, for a total value of $10,695,113.30. Following the transaction, the executive vice president directly owned 116,173 shares in the company, valued at approximately $10,705,341.95. This trade represents a 49.98% decrease in their position. The SEC filing for this sale provides additional information. 0.50% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. Morgan Stanley increased their price objective on Best Buy from $80.00 to $90.00 and gave the company an "equal weight" rating in a research report on Friday, August 28th. Citigroup lifted their target price on Best Buy from $79.00 to $88.00 and gave the stock a "neutral" rating in a report on Thursday, August 13th. Wedbush reaffirmed a "buy" rating on shares of Best Buy in a report on Monday, August 24th. Jefferies Financial Group lowered Best Buy from a "buy" rating to a "hold" rating and decreased their price target for the company from $89.00 to $85.00 in a research report on Wednesday, August 5th. Finally, Weiss Ratings raised Best Buy from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Best Buy presently has a consensus rating of "Hold" and a consensus target price of $85.90.

Best Buy Price Performance

Shares of NYSE:BBY opened at $99.85 on Friday. The company's fifty day moving average is $89.34 and its two-hundred day moving average is $78.59. The company has a market cap of $20.94 billion, a P/E ratio of 16.61, a price-to-earnings-growth ratio of 2.50 and a beta of 1.26. Best Buy Co., Inc. has a 12-month low of $55.10 and a 12-month high of $100.58. The company has a quick ratio of 0.41, a current ratio of 1.12 and a debt-to-equity ratio of 0.36.

Best Buy (NYSE:BBY - Get Free Report) last issued its earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping the consensus estimate of $1.39 by $0.08. Best Buy had a return on equity of 48.14% and a net margin of 3.01%. The business had revenue of $9.78 billion during the quarter, compared to analysts' expectations of $9.59 billion. During the same quarter last year, the firm posted $1.28 earnings per share. Best Buy's revenue was up 3.6% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Equities analysts expect that Best Buy Co., Inc. will post 6.81 earnings per share for the current fiscal year.

Best Buy Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 8th. Investors of record on Thursday, September 17th were paid a $0.96 dividend. This represents a $3.84 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend was Thursday, September 17th. Best Buy's dividend payout ratio is currently 63.89%.

About Best Buy

Best Buy Co, Inc is a specialty retailer of technology products and services headquartered in Richfield, Minnesota. The company sells consumer electronics, computing and mobile products, entertainment products, appliances, furniture, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology-related services, including product installation, repair, technical support, delivery, and in-home consultation. Its services are offered through brands and operations such as Geek Squad, while the company also provides membership and protection programs designed to support customers after purchase.

The company serves customers primarily in the United States and Canada.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.