Best Buy (NYSE:BBY) Sets New 12-Month High - Time to Buy?

Key Points

• Best Buy shares reached a new 52-week high of $95.85, trading about 2.6% higher, although the stock’s consensus rating remains “Hold” with an average price target of $85.40.
• The retailer reported quarterly EPS of $1.47, exceeding the $1.39 estimate, while revenue rose 3.6% year over year to $9.78 billion.
• Best Buy declared a quarterly dividend of $0.96, equivalent to an annualized $3.84 payout and a 4.0% yield; institutional investors own approximately 80.96% of the company.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) shares reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $95.85 and last traded at $95.2830, with a volume of 241193 shares changing hands. The stock had previously closed at $92.45.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. BNP Paribas Exane lifted their price target on shares of Best Buy from $74.00 to $76.00 and gave the stock a "neutral" rating in a research note on Friday, May 29th. Jefferies Financial Group lowered Best Buy from a "buy" rating to a "hold" rating and dropped their target price for the stock from $89.00 to $85.00 in a research report on Wednesday, August 5th. Morgan Stanley boosted their price target on Best Buy from $80.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Friday, August 28th. Loop Capital lowered Best Buy from a "buy" rating to a "hold" rating and set a $82.00 price objective for the company. in a research note on Monday, July 13th. Finally, Truist Financial set a $100.00 price objective on Best Buy in a report on Thursday, August 27th. 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.com, the company currently has a consensus rating of "Hold" and an average target price of $85.40.

Best Buy Stock Up 2.6%

The firm's 50 day simple moving average is $86.14 and its 200 day simple moving average is $73.54. The company has a market cap of $19.89 billion, a price-to-earnings ratio of 15.74, a price-to-earnings-growth 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 issued its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 earnings per share (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 the consensus estimate of $9.59 billion. During the same period in the previous year, the firm posted $1.28 earnings per share. The business's revenue was up 3.6% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Sell-side analysts anticipate that Best Buy Co., Inc. will post 6.82 EPS for the current fiscal year.

Best Buy Dividend Announcement

The firm also recently announced 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. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Thursday, September 17th. Best Buy's payout ratio is presently 63.89%.

Insider Buying and Selling

In related news, Chairman Richard Schulze sold 224,705 shares of the firm's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the completion of the sale, the chairman directly owned 10,430,936 shares in the company, valued at approximately $814,656,101.60. This trade represents a 2.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Best Buy

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sequoia Financial Advisors LLC increased its position in Best Buy by 18.1% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 12,049 shares of the technology retailer's stock valued at $914,000 after acquiring an additional 1,845 shares in the last quarter. Cidel Asset Management Inc. grew its stake in shares of Best Buy by 7.7% during the second quarter. Cidel Asset Management Inc. now owns 6,502 shares of the technology retailer's stock valued at $493,000 after purchasing an additional 466 shares during the last quarter. Arizona State Retirement System grew its stake in shares of Best Buy by 5.3% during the second quarter. Arizona State Retirement System now owns 56,957 shares of the technology retailer's stock valued at $4,322,000 after purchasing an additional 2,859 shares during the last quarter. Paragon Capital Management Ltd acquired a new stake in shares of Best Buy in the second quarter valued at approximately $264,000. Finally, Empirical Finance LLC raised its position in Best Buy by 153.0% in the 2nd quarter. Empirical Finance LLC now owns 17,467 shares of the technology retailer's stock worth $1,325,000 after purchasing an additional 10,563 shares during the last quarter. Institutional investors and hedge funds own 80.96% of the company's stock.

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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