Best Buy Co., Inc. retails technology products in the United States and Canada. The company operates in two segments, Domestic and International. Its stores provide computing products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness, home theater, portable audio comprising headphones and portable speakers, and smart home products. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, and vacuums; entertainment products consisting of drones, peripherals, movies, music, and toys, as well as gaming hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides consultation, delivery, design, health-related, installation, memberships, repair, set-up, technical support, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Best Buy Mobile, Pacific Kitchen, Home, and Yardbird, as well as domain names bestbuy.com, currenthealth.com, lively.com, yardbird.com, and bestbuy.ca. As of January 30, 2022, it had 1,144 stores. The company was formerly known as Sound of Music, Inc. The company was incorporated in 1966 and is headquartered in Richfield, Minnesota.
Analyst Ratings Changes
Several equities analysts have weighed in on the company. Bank of America cut Best Buy from a "buy" rating to a "neutral" rating in a research note on Tuesday, June 14th. Guggenheim reduced their target price on Best Buy from $100.00 to $85.00 and set a "buy" rating for the company in a report on Monday, August 1st. Barclays downgraded Best Buy from an "overweight" rating to an "equal weight" rating and set a $80.00 target price for the company. in a research report on Wednesday, May 25th. DA Davidson boosted their price objective on Best Buy from $107.00 to $110.00 and gave the company a "buy" rating in a research report on Wednesday, May 25th. Finally, UBS Group reduced their target price on Best Buy from $80.00 to $76.00 and set a "neutral" rating on the stock in a research note on Thursday, July 28th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and eight have issued a buy rating to the stock. According to MarketBeat.com, Best Buy presently has a consensus rating of "Hold" and an average price target of $87.25.
Best Buy Stock Performance
NYSE:BBY traded down $0.46 during midday trading on Friday, hitting $79.96. The company had a trading volume of 138,049 shares, compared to its average volume of 2,894,957. The firm has a fifty day simple moving average of $73.33 and a two-hundred day simple moving average of $86.55. The stock has a market cap of $18.00 billion, a price-to-earnings ratio of 8.98, a P/E/G ratio of 0.66 and a beta of 1.50. Best Buy has a fifty-two week low of $64.29 and a fifty-two week high of $141.97. The company has a quick ratio of 0.24, a current ratio of 0.96 and a debt-to-equity ratio of 0.42.
Best Buy (NYSE:BBY - Get Rating) last issued its quarterly earnings data on Tuesday, May 24th. The technology retailer reported $1.57 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.59 by ($0.02). The firm had revenue of $10.65 billion for the quarter, compared to analyst estimates of $10.43 billion. Best Buy had a net margin of 4.33% and a return on equity of 63.39%. The firm's revenue for the quarter was down 8.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.23 EPS. Equities analysts forecast that Best Buy will post 6.69 earnings per share for the current fiscal year.
Best Buy Announces Dividend
The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 5th. Stockholders of record on Tuesday, June 14th were issued a dividend of $0.88 per share. The ex-dividend date of this dividend was Monday, June 13th. This represents a $3.52 dividend on an annualized basis and a dividend yield of 4.40%. Best Buy's dividend payout ratio (DPR) is presently 39.07%.
Insider Activity at Best Buy
In related news, EVP Kathleen Scarlett sold 6,237 shares of the business's stock in a transaction dated Wednesday, June 1st. The shares were sold at an average price of $80.68, for a total transaction of $503,201.16. Following the transaction, the executive vice president now directly owns 69,538 shares in the company, valued at $5,610,325.84. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. In other Best Buy news, Chairman Richard M. Schulze purchased 250,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 25th. The stock was bought at an average cost of $79.60 per share, for a total transaction of $19,900,000.00. Following the purchase, the chairman now directly owns 20,464,051 shares in the company, valued at $1,628,938,459.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kathleen Scarlett sold 6,237 shares of the firm's stock in a transaction dated Wednesday, June 1st. The shares were sold at an average price of $80.68, for a total transaction of $503,201.16. Following the sale, the executive vice president now owns 69,538 shares of the company's stock, valued at $5,610,325.84. The disclosure for this sale can be found here. Insiders have sold a total of 63,011 shares of company stock worth $5,036,334 over the last quarter. Company insiders own 0.44% of the company's stock.
