UBS Group Downgrades Best Buy (NYSE:BBY) to Hold

Best Buy (NYSE:BBY) was downgraded by equities researchers at UBS Group from a “strong-buy” rating to a “hold” rating in a report issued on Friday,Zacks.com reports.

A number of other research firms have also issued reports on BBY. Weiss Ratings lowered Best Buy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, May 7th. Evercore boosted their price target on Best Buy from $65.00 to $85.00 in a research report on Friday. Piper Sandler reiterated a “neutral” rating and set a $77.00 price target on shares of Best Buy in a research report on Thursday. Truist Financial boosted their price target on Best Buy from $66.00 to $81.00 and gave the stock a “hold” rating in a research report on Friday. Finally, KeyCorp reiterated a “sector weight” rating on shares of Best Buy in a research report on Wednesday, March 4th. Six equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $78.60.

Best Buy Trading Up 4.6%

NYSE:BBY opened at $78.16 on Friday. Best Buy has a 12-month low of $55.10 and a 12-month high of $84.99. The firm has a market capitalization of $16.47 billion, a P/E ratio of 14.47, a P/E/G ratio of 1.85 and a beta of 1.22. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.12 and a quick ratio of 0.43. The business has a 50 day simple moving average of $62.29 and a 200 day simple moving average of $66.88.

Best Buy (NYSE:BBY) last released its quarterly earnings data on Thursday, May 28th. The technology retailer reported $1.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.22 by $0.06. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The business had revenue of $8.94 billion during the quarter, compared to analyst estimates of $8.82 billion. During the same quarter in the previous year, the firm posted $1.15 EPS. The business’s revenue for the quarter was up 1.9% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Equities research analysts predict that Best Buy will post 6.5 EPS for the current year.

Insider Buying and Selling

In other news, EVP Jason J. Bonfig sold 6,336 shares of the business’s stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $405,630.72. Following the sale, the executive vice president owned 79,137 shares of the company’s stock, valued at approximately $5,066,350.74. The trade was a 7.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Mathew Watson sold 3,298 shares of the business’s stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value 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 disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 77,247 shares of company stock worth $4,945,353. 0.47% of the stock is owned by corporate insiders.

Institutional Trading of Best Buy

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Cozad Asset Management Inc. raised its stake in shares of Best Buy by 4.1% in the 1st quarter. Cozad Asset Management Inc. now owns 23,006 shares of the technology retailer’s stock worth $1,477,000 after buying an additional 916 shares in the last quarter. Glenmede Trust Co. NA raised its stake in shares of Best Buy by 11.5% in the 1st quarter. Glenmede Trust Co. NA now owns 22,452 shares of the technology retailer’s stock worth $1,441,000 after buying an additional 2,314 shares in the last quarter. Royal Fund Management LLC bought a new stake in shares of Best Buy in the 1st quarter worth $3,162,000. Bank of America Corp DE raised its stake in shares of Best Buy by 17.8% in the 1st quarter. Bank of America Corp DE now owns 1,139,804 shares of the technology retailer’s stock worth $73,175,000 after buying an additional 172,579 shares in the last quarter. Finally, Kentucky Retirement Systems raised its stake in shares of Best Buy by 86.0% in the 1st quarter. Kentucky Retirement Systems now owns 22,568 shares of the technology retailer’s stock worth $1,449,000 after buying an additional 10,433 shares in the last quarter. Institutional investors own 80.96% of the company’s stock.

Best Buy News Summary

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

• Positive Sentiment: Best Buy reported Q1 adjusted EPS of $1.28, above estimates of $1.22, and revenue of $8.94 billion, also ahead of forecasts, with comparable sales rising 2.0%. Best Buy Q1 Earnings Beat Estimates, Comparable Sales Rise 2%
• Positive Sentiment: The company reaffirmed its full-year guidance and highlighted improving margins and stronger demand in gaming, computing, and cellphones, suggesting the turnaround is gaining traction. Best Buy Reports First Quarter Results
• Positive Sentiment: Several analyst firms raised price targets after the earnings release, including Jefferies, Loop Capital, Guggenheim, Morgan Stanley, Citigroup, and others, indicating improving sentiment around the stock. Analyst rating updates
• Positive Sentiment: Retail-industry news also pointed to selective consumer spending still favoring value-focused names like Best Buy, adding to the rally. Retail Rally Sends Kohl’s, Best Buy, Dollar Tree Up As Much As 18%
• Neutral Sentiment: DA Davidson reaffirmed its buy rating but set a $78 price target, which is roughly in line with the current share price and does not materially change the valuation debate. DA Davidson rating reaffirmation
• Neutral Sentiment: Best Buy also announced a quarterly dividend of $0.96 per share, reinforcing its income appeal for investors. Dividend announcement

About Best Buy

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.