Best Buy (NYSE:BBY) Shares Gap Down – What’s Next?

Best Buy Co., Inc. (NYSE:BBY)’s stock price 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 trading hands.

More Best Buy News

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

• Positive Sentiment: Quarterly results exceeded expectations. Best Buy reported Q2 FY27 revenue of $9.78 billion, up 3.6% year over year and above the $9.59 billion consensus estimate. Adjusted earnings of $1.47 per share also topped the $1.39 consensus, while comparable sales rose 4.1%. Best Buy Reports Second Quarter Results
• Positive Sentiment: Best Buy raised its full-year outlook. The company now expects adjusted fiscal 2027 earnings of $6.70 to $6.90 per share, up from $6.30 to $6.60 previously, and revenue of $42.3 billion to $42.8 billion. The improved forecast reflects strength in computing and steady demand for technology upgrades and replacements. Best Buy raises annual sales forecast on steady electronics demand
• Positive Sentiment: Analyst sentiment improved. Guggenheim and DA Davidson each raised their BBY price target from $90 to $95 and assigned a “buy” rating, implying roughly 15% upside from the referenced price.
• Positive Sentiment: Shareholder returns remain attractive. Best Buy declared a quarterly dividend of $0.96 per share, equivalent to an annualized yield of approximately 4.7% at the referenced price.
• Neutral Sentiment: Growth initiatives could support the longer-term retail recovery. Best Buy is expanding its omnichannel strategy, including the Ask Blue conversational AI assistant and smaller-format stores, while digital-led sales growth was highlighted during the earnings call. Best Buy Expands Omnichannel Footprint With OpenAI Integration and Smaller-Format Stores
• Negative Sentiment: The negative market reaction likely reflects high expectations and lingering risks. Although results beat estimates, the outlook increase was relatively modest versus consensus, international revenue declined, and investors remain cautious about discretionary spending. Analysts are also described as conflicted on BBY, suggesting uncertainty about how durable the recovery will be. Analysts Conflicted on These Consumer Cyclical Names

Analyst Ratings Changes

Several equities analysts recently weighed in on BBY shares. UBS Group reissued a “neutral” rating and set a $90.00 price objective (up from $86.00) on shares of Best Buy in a research report on Friday. Jefferies Financial Group downgraded Best Buy from a “buy” rating to a “hold” rating and dropped their price target for the stock from $89.00 to $85.00 in a research report on Wednesday, August 5th. Evercore upped their price target on Best Buy from $65.00 to $85.00 in a report on Friday, May 29th. Barclays increased their price objective on Best Buy from $77.00 to $85.00 and gave the company a “buy” rating in a research report on Friday. Finally, Morgan Stanley raised their price objective on shares of Best Buy from $80.00 to $90.00 and gave the stock an “equal weight” rating in a research note on Friday. Seven research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Best Buy has a consensus rating of “Hold” and a consensus price target of $85.40.

Best Buy Stock Down 1.5%

The company has a current ratio of 1.12, a quick ratio of 0.40 and a debt-to-equity ratio of 0.36. The business’s fifty day moving average price is $83.16 and its 200 day moving average price is $71.34. The company has a market capitalization of $17.35 billion, a P/E ratio of 13.70, a P/E/G ratio of 2.36 and a beta of 1.29.

Best Buy (NYSE:BBY) 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. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The business had revenue of $9.78 billion for the quarter, compared to analysts’ expectations of $9.59 billion. During the same quarter in the previous year, the firm posted $1.28 earnings per share. The firm’s revenue for the quarter was up 3.6% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, equities research analysts predict that Best Buy Co., Inc. will post 6.7 earnings per share for the current fiscal year.

Best Buy Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th will be paid a $0.96 dividend. This represents a $3.84 annualized dividend and a dividend yield of 4.7%. The ex-dividend date is Thursday, September 17th. Best Buy’s dividend payout ratio is currently 71.11%.

Insider Activity

In related news, Chairman Richard M. Schulze sold 224,705 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the completion of the transaction, the chairman owned 10,430,936 shares in the company, valued at $814,656,101.60. This trade represents a 2.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last ninety days, insiders sold 500,000 shares of company stock valued at $39,065,226. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Tema ETFs LLC lifted its holdings in shares of Best Buy by 6.5% during the second quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer’s stock valued at $179,000 after acquiring an additional 145 shares during the period. Krane Funds Advisors LLC grew its holdings in shares of Best Buy by 3.0% in the 4th quarter. Krane Funds Advisors LLC now owns 5,163 shares of the technology retailer’s stock worth $346,000 after purchasing an additional 151 shares during the last quarter. B. Metzler seel. Sohn & Co. AG increased its position in shares of Best Buy by 1.0% during the 2nd quarter. B. Metzler seel. Sohn & Co. AG now owns 14,613 shares of the technology retailer’s stock worth $1,109,000 after purchasing an additional 151 shares in the last quarter. Applied Finance Capital Management LLC increased its position in shares of Best Buy by 3.8% during the 4th quarter. Applied Finance Capital Management LLC now owns 4,270 shares of the technology retailer’s stock worth $286,000 after purchasing an additional 157 shares in the last quarter. Finally, UMB Bank n.a. lifted its holdings in Best Buy by 6.2% during the 4th 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. 80.96% of the stock is currently owned by institutional investors and hedge funds.

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.