Best Buy (NYSE:BBY) Sets New 52-Week High - Should You Buy?

Key Points

• Best Buy reached a new 52-week high of $91.37, but analyst sentiment remains cautious: the consensus rating is “Hold,” with an average price target of $85.40.
• The company exceeded quarterly expectations, reporting $1.47 in EPS versus $1.39 expected and $9.78 billion in revenue, up 3.6% year over year.
• Best Buy announced a quarterly dividend of $0.96, equivalent to an annualized 4.2% yield; however, insiders sold 500,000 shares over the last quarter.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) reached a new 52-week high during mid-day trading on Friday . The company traded as high as $91.37 and last traded at $90.8930, with a volume of 1630038 shares changing hands. The stock had previously closed at $88.09.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on BBY shares. The Goldman Sachs Group upped their price target on Best Buy from $62.00 to $71.00 and gave the stock a "sell" rating in a report on Friday, August 28th. Weiss Ratings raised shares of Best Buy from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, July 29th. DA Davidson restated a "neutral" rating and set a $95.00 price target on shares of Best Buy in a research report on Tuesday. Loop Capital lowered shares of Best Buy from a "buy" rating to a "hold" rating and set a $82.00 price target on the stock. in a research note on Monday, July 13th. Finally, Telsey Advisory Group lifted their price objective on Best Buy from $90.00 to $95.00 and gave the stock an "outperform" rating in a report on Tuesday, August 4th. Six equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $85.40.

Best Buy Stock Up 3.2%

The company has a debt-to-equity ratio of 0.36, a current ratio of 1.12 and a quick ratio of 0.41. The company has a market capitalization of $19.06 billion, a PE ratio of 15.12, a P/E/G ratio of 2.20 and a beta of 1.28. The business's 50 day simple moving average is $84.98 and its 200 day simple moving average is $72.69.

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 (EPS) 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 business had revenue of $9.78 billion during the quarter, compared to the consensus estimate of $9.59 billion. During the same quarter last year, the firm earned $1.28 EPS. The business'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. As a group, analysts anticipate that Best Buy Co., Inc. will post 6.82 earnings per share 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. Shareholders of record on Thursday, September 17th will be given a $0.96 dividend. The ex-dividend date is Thursday, September 17th. This represents a $3.84 dividend on an annualized basis and a yield of 4.2%. Best Buy's payout ratio is currently 63.89%.

Insider Activity at Best Buy

In other news, Chairman Richard Schulze sold 224,705 shares of the company's stock in a transaction on 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 transaction, the chairman owned 10,430,936 shares of the company's stock, valued at $814,656,101.60. This represents a 2.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Over the last quarter, insiders sold 500,000 shares of company stock valued at $39,065,226. Corporate insiders own 0.50% of the company's stock.

Institutional Trading of Best Buy

Several institutional investors and hedge funds have recently bought and sold shares of the stock. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its position in Best Buy by 42.9% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 225,000 shares of the technology retailer's stock worth $15,059,000 after acquiring an additional 67,600 shares during the last quarter. HighTower Advisors LLC raised its stake in shares of Best Buy by 250.6% in the fourth quarter. HighTower Advisors LLC now owns 101,292 shares of the technology retailer's stock valued at $6,779,000 after purchasing an additional 72,398 shares in the last quarter. North Dakota State Investment Board bought a new position in shares of Best Buy during the 4th quarter worth about $1,958,000. Genus Capital Management Inc. acquired a new stake in Best Buy during the fourth quarter valued at approximately $1,656,000. Finally, Conning Inc. grew its position in Best Buy by 4.7% in the fourth quarter. Conning Inc. now owns 436,710 shares of the technology retailer's stock valued at $29,229,000 after acquiring an additional 19,523 shares during the period. 80.96% of the stock is currently owned by hedge funds and other 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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