Best Buy (NYSE:BBY) Shares Gap Down - Time to Sell?

Key Points

• Best Buy shares gapped down 4.3%, opening at $80.60 after closing at $87.44, despite later trading near $84.19.
• The company reported better-than-expected quarterly results, with adjusted EPS of $1.47 and revenue of $9.78 billion; management also raised fiscal 2027 EPS and sales guidance, citing strength in computing, upgrades and AI-related products.
• Wall Street remains cautious: Best Buy has a consensus “Hold” rating and an average price target of $83.10, while insiders sold more than 1 million shares worth approximately $77.3 million over the past 90 days.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) shares gapped down prior to trading on Thursday . The stock had previously closed at $87.44, but opened at $80.60. Best Buy shares last traded at $84.1880, with a volume of 2,727,126 shares.

Key Headlines Impacting Best Buy

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy reported adjusted earnings of $1.47 per share, ahead of the roughly $1.37–$1.39 analyst consensus, while revenue reached $9.78 billion versus expectations of $9.59 billion. Revenue increased 3.6% year over year, and comparable sales rose 4.1% overall and 4.5% domestically. Best Buy Reports Second Quarter Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.70–$6.90 from $6.30–$6.60 and increased its sales forecast to approximately $42.3–$42.8 billion, above the $42.1 billion consensus estimate. Best Buy Raises Outlook as Sales Grow
• Positive Sentiment: Strength in computing and demand for technology upgrades, replacements, AI-related products and collectibles supported the quarter and helped reinforce the company’s turnaround narrative. Best Buy Beats Q2 Earnings Across the Board

Analysts Set New Price Targets

A number of research firms have weighed in on BBY. Piper Sandler raised their price objective on shares of Best Buy from $77.00 to $85.00 and gave the company a "neutral" rating in a research note on Thursday, August 20th. Daiwa Securities Group boosted their target price on Best Buy from $68.00 to $77.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 2nd. Wells Fargo & Company upped their target price on shares of Best Buy from $65.00 to $85.00 and gave the company an "equal weight" rating in a research note on Tuesday, August 11th. Bank of America began coverage on shares of Best Buy in a report on Monday, August 3rd. They set an "underperform" rating and a $80.00 price target on the stock. Finally, Wedbush reiterated a "buy" rating on shares of Best Buy in a research note on Monday. Six research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $83.10.

Best Buy Stock Down 4.3%

The company has a quick ratio of 0.40, a current ratio of 1.12 and a debt-to-equity ratio of 0.38. The company has a market cap of $17.63 billion, a P/E ratio of 15.46, a price-to-earnings-growth ratio of 2.44 and a beta of 1.29. The company has a fifty day moving average of $82.84 and a 200 day moving average of $71.17.

Best Buy (NYSE:BBY - Get Free Report) last posted its earnings results on Thursday, August 27th. The technology retailer reported $1.47 earnings per share for the quarter, beating analysts' consensus estimates of $1.39 by $0.08. The company had revenue of $9.78 billion for the quarter, compared to the consensus estimate of $9.59 billion. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.Best Buy's revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.28 earnings per share. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. On average, research analysts anticipate that Best Buy Co., Inc. will post 6.6 earnings per share for the current fiscal year.

Insider Activity

In other news, Chairman Richard M. Schulze sold 224,705 shares of the stock in a transaction that occurred on Friday, June 26th. The shares were 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 in the company, 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 Securities & Exchange Commission, which is available at this link. Also, CAO Mathew Watson sold 1,784 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $73.80, for a total transaction of $131,659.20. Following the completion of the transaction, the chief accounting officer directly owned 21,630 shares in the company, valued at approximately $1,596,294. The trade was a 7.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,002,134 shares of company stock valued at $77,283,527 in the last ninety days. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Tema ETFs LLC boosted its holdings in shares of Best Buy by 6.5% during the 2nd quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer's stock worth $179,000 after buying an additional 145 shares during the period. Krane Funds Advisors LLC boosted its holdings in Best Buy by 3.0% during the fourth quarter. Krane Funds Advisors LLC now owns 5,163 shares of the technology retailer's stock valued at $346,000 after acquiring an additional 151 shares during the period. B. Metzler seel. Sohn & Co. AG boosted its holdings in Best Buy by 1.0% during the second quarter. B. Metzler seel. Sohn & Co. AG now owns 14,613 shares of the technology retailer's stock valued at $1,109,000 after acquiring an additional 151 shares during the period. Applied Finance Capital Management LLC grew its position in shares of Best Buy by 3.8% in the fourth quarter. Applied Finance Capital Management LLC now owns 4,270 shares of the technology retailer's stock valued at $286,000 after purchasing an additional 157 shares during the last quarter. Finally, UMB Bank n.a. grew its position in shares of Best Buy by 6.2% in the fourth quarter. UMB Bank n.a. now owns 3,158 shares of the technology retailer's stock valued at $211,000 after purchasing an additional 185 shares during the last quarter. Hedge funds and other institutional investors own 80.96% of the company's stock.

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.

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