Best Buy (NYSE:BBY) Reaches New 12-Month Low Following Analyst Downgrade

Best Buy Co., Inc. (NYSE:BBY)’s share price hit a new 52-week low during mid-day trading on Wednesday after Citigroup lowered their price target on the stock from $69.00 to $60.00. Citigroup currently has a neutral rating on the stock. Best Buy traded as low as $55.61 and last traded at $55.9880, with a volume of 251354 shares traded. The stock had previously closed at $57.20.

Other analysts have also issued research reports about the company. BNP Paribas Exane increased their price objective on Best Buy from $68.00 to $74.00 and gave the company a “neutral” rating in a research note on Wednesday, March 4th. Truist Financial reduced their target price on shares of Best Buy from $73.00 to $66.00 and set a “hold” rating on the stock in a report on Tuesday, March 3rd. DA Davidson set a $78.00 price target on shares of Best Buy in a research note on Thursday, March 5th. Wells Fargo & Company cut their price objective on shares of Best Buy from $75.00 to $70.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 18th. Finally, Jefferies Financial Group reduced their price target on Best Buy from $94.00 to $89.00 and set a “buy” rating on the stock in a research note on Monday, February 9th. Nine analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $71.30.

Insider Activity at Best Buy

In other news, CAO Mathew Watson sold 3,298 shares of the company’s stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total transaction of $211,137.96. Following the completion of the sale, the chief accounting officer directly owned 23,192 shares in the company, valued at $1,484,751.84. This represents a 12.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Corie S. Barry sold 42,869 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $2,744,473.38. Following the completion of the transaction, the chief executive officer directly owned 523,138 shares in the company, valued at $33,491,294.76. This trade represents a 7.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 77,247 shares of company stock worth $4,945,353. 0.59% of the stock is owned by corporate insiders.

Institutional Trading of Best Buy

Institutional investors have recently modified their holdings of the company. Palisade Asset Management LLC purchased a new position in Best Buy in the third quarter valued at approximately $25,000. MV Capital Management Inc. acquired a new stake in shares of Best Buy in the fourth quarter worth $25,000. Torren Management LLC purchased a new position in shares of Best Buy in the 4th quarter valued at $25,000. Root Financial Partners LLC purchased a new position in shares of Best Buy in the 3rd quarter valued at $32,000. Finally, Hillsdale Investment Management Inc. acquired a new position in shares of Best Buy during the 4th quarter valued at $29,000. Hedge funds and other institutional investors own 80.96% of the company’s stock.

Best Buy Trading Down 2.5%

The stock has a market capitalization of $11.75 billion, a PE ratio of 11.10, a PEG ratio of 1.42 and a beta of 1.22. The company has a current ratio of 1.11, a quick ratio of 0.43 and a debt-to-equity ratio of 0.39. The business’s 50-day moving average is $62.75 and its two-hundred day moving average is $68.54.

Best Buy (NYSE:BBY) last released its quarterly earnings data on Tuesday, March 3rd. The technology retailer reported $2.61 EPS for the quarter, beating the consensus estimate of $2.48 by $0.13. Best Buy had a return on equity of 49.17% and a net margin of 2.56%.The company had revenue of $13.81 billion for the quarter, compared to analyst estimates of $13.96 billion. During the same period last year, the company posted $2.58 earnings per share. The firm’s revenue was down 1.0% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. On average, analysts predict that Best Buy Co., Inc. will post 6.5 earnings per share for the current year.

Best Buy Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 24th were issued a $0.96 dividend. The ex-dividend date was Tuesday, March 24th. This represents a $3.84 dividend on an annualized basis and a yield of 6.9%. This is a boost from Best Buy’s previous quarterly dividend of $0.95. Best Buy’s dividend payout ratio (DPR) is currently 76.19%.

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.