Best Buy Target of Unusually Large Options Trading (NYSE:BBY)

Key Points

• Best Buy saw unusually heavy options activity, with 65,723 call options purchased—about 851% above its average call volume.
• The stock fell 1.1% to $92.26, while analysts maintained a consensus “Hold” rating and an average price target of $85.40. Recent quarterly results exceeded expectations, with earnings and revenue both beating forecasts.
• Best Buy announced a quarterly dividend of $0.96 per share, equivalent to $3.84 annually and a 4.2% yield; institutional investors own approximately 80.96% of the company.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) was the target of some unusual options trading on Wednesday. Stock investors purchased 65,723 call options on the stock. This is an increase of approximately 851% compared to the average volume of 6,911 call options.

Insider Transactions at Best Buy

In related news, Chairman Richard Schulze sold 224,705 shares of Best Buy stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $78.10, for a total value of $17,549,460.50. Following the completion of the sale, the chairman directly owned 10,430,936 shares in the company, valued at $814,656,101.60. This trade represents a 2.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Best Buy

A number of hedge funds have recently modified their holdings of the business. HighTower Advisors LLC grew its holdings in shares of Best Buy by 250.6% in the 4th quarter. HighTower Advisors LLC now owns 101,292 shares of the technology retailer's stock valued at $6,779,000 after acquiring an additional 72,398 shares in the last quarter. North Dakota State Investment Board acquired a new position in Best Buy during the fourth quarter valued at approximately $1,958,000. Genus Capital Management Inc. acquired a new position in Best Buy during the fourth quarter valued at approximately $1,656,000. Meeder Asset Management Inc. bought a new position in Best Buy in the second quarter valued at approximately $1,224,000. Finally, BlackRock Inc. acquired a new position in shares of Best Buy during the 2nd quarter worth approximately $1,932,812,000. Institutional investors and hedge funds own 80.96% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on BBY. Bank of America started coverage on shares of Best Buy in a research report on Monday, August 3rd. They set an "underperform" rating and a $80.00 price target for the company. Wells Fargo & Company lifted their target price on shares of Best Buy from $65.00 to $85.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 11th. Weiss Ratings upgraded shares of Best Buy from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, July 29th. Wall Street Zen raised Best Buy from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th. Finally, Loop Capital lowered Best Buy from a "buy" rating to a "hold" rating and set a $82.00 price target on the stock. in a research report on Monday, July 13th. Six investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $85.40.

Best Buy Trading Down 1.1%

NYSE:BBY traded down $0.98 during trading hours on Wednesday, hitting $92.26. The stock had a trading volume of 4,014,874 shares, compared to its average volume of 4,266,932. Best Buy has a one year low of $55.10 and a one year high of $95.81. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.41 and a current ratio of 1.12. The company has a market cap of $19.35 billion, a price-to-earnings ratio of 15.35, a P/E/G ratio of 2.37 and a beta of 1.28. The business's 50 day moving average is $85.86 and its 200-day moving average is $73.33.

Best Buy (NYSE:BBY - Get Free Report) last announced its quarterly earnings results on Thursday, August 27th. The technology retailer reported $1.47 earnings per share for the quarter, topping analysts' consensus estimates of $1.39 by $0.08. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The company had revenue of $9.78 billion for the quarter, compared to analysts' expectations of $9.59 billion. During the same period last year, the firm posted $1.28 earnings per share. The business's quarterly 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. Sell-side analysts anticipate that Best Buy will post 6.82 EPS for the current fiscal year.

Best Buy Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be paid a $0.96 dividend. This represents a $3.84 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend is Thursday, September 17th. Best Buy's payout ratio is presently 63.89%.

Best Buy Company Profile

Best Buy Co, Inc is a specialty retailer of technology products and services operating under the Best Buy brand. The company sells consumer electronics, computers, mobile phones, appliances, entertainment products, smart-home equipment, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology support, installation, repair, and consultation services through Geek Squad. Its offerings include assistance with device setup, home theater installation, computer and appliance support, and technology solutions for consumers and small businesses.

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