Best Buy (NYSE:BBY) Hits New 12-Month High – What’s Next?

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

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on BBY. Jefferies Financial Group cut shares of Best Buy from a “buy” rating to a “hold” rating and lowered their target price for the company from $89.00 to $85.00 in a research note on Wednesday, August 5th. Telsey Advisory Group upped their price objective on Best Buy from $90.00 to $95.00 and gave the company an “outperform” rating in a research note on Tuesday, August 4th. Morgan Stanley raised their price target on Best Buy from $80.00 to $90.00 and gave the company an “equal weight” rating in a report on Friday, August 28th. Wells Fargo & Company boosted their target price on Best Buy from $65.00 to $85.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 11th. Finally, UBS Group reiterated a “neutral” rating and issued a $90.00 price objective (up from $86.00) on shares of Best Buy in a report on Friday, August 28th. Six research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Best Buy presently has an average rating of “Hold” and a consensus price target of $85.40.

Best Buy Stock Performance

The company has a quick ratio of 0.41, a current ratio of 1.12 and a debt-to-equity ratio of 0.36. The stock’s fifty day moving average is $87.09 and its two-hundred day moving average is $74.38. The firm has a market capitalization of $19.77 billion, a price-to-earnings ratio of 15.73, a P/E/G ratio of 2.33 and a beta of 1.28.

Best Buy (NYSE:BBY) last announced its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, beating 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 company 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 posted $1.28 EPS. The company’s quarterly 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. On average, analysts predict that Best Buy Co., Inc. will post 6.82 earnings per share for the current year.

Best Buy Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be issued a dividend of $0.96 per share. 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 (DPR) is currently 63.89%.

Insider Activity at Best Buy

In related news, Chairman Richard Schulze sold 300,000 shares of the company’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $92.51, for a total value of $27,753,000.00. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Over the last ninety days, insiders have sold 718,601 shares of company stock worth $60,451,555. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Best Buy during the 2nd quarter worth approximately $1,932,812,000. Norges Bank acquired a new position in shares of Best Buy during the 4th quarter worth $174,685,000. Bank of New York Mellon Corp bought a new position in shares of Best Buy in the second quarter worth about $174,893,000. Hsbc Holdings PLC lifted its stake in Best Buy by 104.1% in the 4th quarter. Hsbc Holdings PLC now owns 2,020,539 shares of the technology retailer’s stock valued at $135,685,000 after purchasing an additional 1,030,544 shares during the last quarter. Finally, KBC Group NV lifted its stake in shares of Best Buy by 50.5% in the 1st quarter. KBC Group NV now owns 1,584,803 shares of the technology retailer’s stock valued at $101,745,000 after acquiring an additional 531,998 shares during the last quarter. 80.96% of the stock is owned by institutional investors and hedge funds.

About Best Buy

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.