Best Buy (NYSE:BBY) Sets New 1-Year High - Time to Buy?

Key Points

• Best Buy shares reached a new 52-week high of $96.53, trading above their 50-day and 200-day moving averages. However, analysts maintain a consensus “Hold” rating with an average price target of $85.40, below the current price.
• The company reported stronger-than-expected quarterly results, with earnings of $1.47 per share and revenue of $9.78 billion; revenue increased 3.6% year over year.
• Best Buy declared a quarterly dividend of $0.96 per share, representing a 4.1% annualized yield, while insiders sold more than 718,000 shares over the past quarter.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $96.53 and last traded at $95.8650, with a volume of 120880 shares traded. The stock had previously closed at $94.82.

Analyst Ratings Changes

BBY has been the subject of several recent analyst reports. DA Davidson reissued a "neutral" rating and issued a $95.00 price target on shares of Best Buy in a report on Tuesday, September 8th. Piper Sandler upped their price objective on Best Buy from $77.00 to $85.00 and gave the stock a "neutral" rating in a report on Thursday, August 20th. Citigroup raised their target price on Best Buy from $79.00 to $88.00 and gave the company a "neutral" rating in a report on Thursday, August 13th. JPMorgan Chase & Co. boosted their target price on shares of Best Buy from $76.00 to $84.00 and gave the stock a "neutral" rating in a research report on Friday, May 29th. Finally, Jefferies Financial Group cut shares of Best Buy from a "buy" rating to a "hold" rating and lowered their price target for the stock from $89.00 to $85.00 in a research note on Wednesday, August 5th. 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. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $85.40.

Best Buy Stock Down 0.6%

The firm's 50 day moving average is $87.09 and its 200-day moving average is $74.38. The firm has a market cap of $19.77 billion, a PE ratio of 15.73, a P/E/G ratio of 2.33 and a beta of 1.28. 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 released 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. The firm had revenue of $9.78 billion during the quarter, compared to analysts' expectations of $9.59 billion. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. Best Buy's revenue for the quarter was up 3.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.28 EPS. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, equities research analysts expect that Best Buy Co., Inc. will post 6.82 earnings per share for the current fiscal year.

Best Buy Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Thursday, September 17th will be issued a $0.96 dividend. The ex-dividend date of this dividend is Thursday, September 17th. This represents a $3.84 annualized dividend and a yield of 4.1%. Best Buy's dividend payout ratio is currently 63.89%.

Insider Activity at Best Buy

In other news, Chairman Richard Schulze sold 300,000 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $92.51, for a total transaction of $27,753,000.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders have sold a total of 718,601 shares of company stock worth $60,451,555 over the last quarter. Company insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Best Buy

Several large investors have recently added to or reduced their stakes in the company. MV Capital Management Inc. acquired a new position in Best Buy during the fourth quarter valued at approximately $25,000. Hillsdale Investment Management Inc. acquired a new stake in shares of Best Buy in the fourth quarter worth $29,000. Bayban bought a new position in shares of Best Buy during the 4th quarter worth about $33,000. Aberdeen Wealth Management LLC bought a new position in Best Buy during the second quarter valued at about $38,000. Finally, Hantz Financial Services Inc. increased its position in shares of Best Buy by 491.7% during the fourth quarter. Hantz Financial Services Inc. now owns 568 shares of the technology retailer's stock valued at $38,000 after purchasing an additional 472 shares during the period. 80.96% of the stock is currently owned by institutional investors.

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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