Investors Buy Large Volume of Call Options on Best Buy (NYSE:BBY)

Best Buy Co., Inc. (NYSE:BBY) was the target of unusually large options trading activity on Wednesday. Stock investors acquired 65,723 call options on the company. This represents an increase of 851% compared to the typical daily volume of 6,911 call options.

Best Buy Stock Performance

Shares of BBY stock traded down $0.98 during midday trading on Wednesday, hitting $92.26. 4,014,874 shares of the company were exchanged, compared to its average volume of 4,266,932. The firm has a market capitalization of $19.35 billion, a P/E ratio of 15.35, a PEG ratio of 2.37 and a beta of 1.28. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.41 and a current ratio of 1.12. The firm’s 50 day moving average price is $85.86 and its two-hundred day moving average price is $73.33. Best Buy has a 52 week low of $55.10 and a 52 week high of $95.81.

Best Buy (NYSE:BBY) last released its quarterly earnings results on Thursday, August 27th. The technology retailer reported $1.47 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.08. The firm had revenue of $9.78 billion for the quarter, compared to analysts’ expectations of $9.59 billion. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The business’s revenue was up 3.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.28 EPS. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, equities research analysts anticipate that Best Buy will post 6.82 earnings per share for the current year.

Best Buy Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th will be paid a dividend of $0.96 per share. The ex-dividend date is Thursday, September 17th. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.2%. Best Buy’s dividend payout ratio (DPR) is 63.89%.

Insiders Place Their Bets

In other Best Buy news, Chairman Richard Schulze sold 224,705 shares of the company’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the sale, the chairman directly owned 10,430,936 shares of the company’s stock, valued at approximately $814,656,101.60. This represents a 2.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.50% of the company’s stock.

Institutional Trading of Best Buy

Several institutional investors have recently added to or reduced their stakes in BBY. MV Capital Management Inc. acquired a new stake in shares of Best Buy during the fourth quarter worth $25,000. Hillsdale Investment Management Inc. acquired a new position in shares of Best Buy in the fourth quarter valued at about $29,000. Bayban bought a new position in Best Buy during the fourth quarter worth about $33,000. Elyxium Wealth LLC bought a new position in Best Buy during the fourth quarter worth about $37,000. Finally, Maseco LLP acquired a new stake in Best Buy in the 1st quarter worth about $37,000. 80.96% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on BBY shares. Bank of America assumed coverage on shares of Best Buy in a report on Monday, August 3rd. They issued an “underperform” rating and a $80.00 target price on the stock. Piper Sandler lifted their price target on Best Buy from $77.00 to $85.00 and gave the stock a “neutral” rating in a report on Thursday, August 20th. The Goldman Sachs Group boosted their price target on Best Buy from $62.00 to $71.00 and gave the stock a “sell” rating in a research report on Friday, August 28th. Wedbush restated a “buy” rating on shares of Best Buy in a research note on Monday, August 24th. Finally, Telsey Advisory Group lifted their target price on Best Buy from $90.00 to $95.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 4th. Six equities 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 MarketBeat.com, Best Buy presently has an average rating of “Hold” and a consensus target price of $85.40.

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.