Best Buy (NYSE:BBY) Reaches New 1-Year High – Time to Buy?

Best Buy Co., Inc. (NYSE:BBY) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $87.58 and last traded at $87.22, with a volume of 413606 shares traded. The stock had previously closed at $85.43.

Analyst Upgrades and Downgrades

BBY has been the topic of several recent analyst reports. Evercore boosted their price target on Best Buy from $65.00 to $85.00 in a research note on Friday, May 29th. Telsey Advisory Group set a $90.00 price objective on Best Buy and gave the company an “outperform” rating in a research note on Friday, May 29th. UBS Group restated a “neutral” rating and set a $86.00 price objective (up from $85.00) on shares of Best Buy in a report on Friday, May 29th. Wall Street Zen lowered Best Buy from a “buy” rating to a “hold” rating in a research report on Monday, July 20th. Finally, Guggenheim reiterated a “buy” rating and set a $90.00 target price on shares of Best Buy in a research note on Friday, May 29th. Five equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $79.50.

Best Buy Trading Up 3.7%

The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.40 and a current ratio of 1.12. The business’s 50 day moving average price is $75.59 and its 200-day moving average price is $68.18. The firm has a market cap of $18.67 billion, a price-to-earnings ratio of 16.42, a price-to-earnings-growth ratio of 2.27 and a beta of 1.30.

Best Buy (NYSE:BBY) last posted its quarterly earnings results on Thursday, May 28th. The technology retailer reported $1.28 EPS for the quarter, topping analysts’ consensus estimates of $1.23 by $0.05. The business had revenue of $8.94 billion during the quarter, compared to the consensus estimate of $8.82 billion. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The company’s revenue for the quarter was up 1.9% compared to the same quarter last year. During the same period last year, the firm earned $1.15 earnings per share. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Equities analysts expect that Best Buy Co., Inc. will post 6.56 EPS for the current year.

Best Buy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th were given a $0.96 dividend. The ex-dividend date was Thursday, June 18th. This represents a $3.84 annualized dividend and a dividend yield of 4.3%. Best Buy’s dividend payout ratio (DPR) is presently 71.11%.

Insider Buying and Selling

In related news, Chairman Richard M. Schulze sold 224,705 shares of the company’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 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CAO Mathew Watson sold 1,784 shares of the firm’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $73.80, for a total value of $131,659.20. Following the transaction, the chief accounting officer owned 21,630 shares in the company, valued at $1,596,294. This trade represents a 7.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,002,134 shares of company stock valued at $77,283,527 over the last quarter. Company insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Tema ETFs LLC raised its stake in Best Buy by 6.5% during the second quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer’s stock worth $179,000 after acquiring an additional 145 shares during the period. Krane Funds Advisors LLC boosted its stake in Best Buy by 3.0% in the fourth quarter. Krane Funds Advisors LLC now owns 5,163 shares of the technology retailer’s stock valued at $346,000 after acquiring an additional 151 shares during the period. Linden Thomas Advisory Services LLC grew its holdings in shares of Best Buy by 0.9% during the fourth quarter. Linden Thomas Advisory Services LLC now owns 16,637 shares of the technology retailer’s stock valued at $1,114,000 after purchasing an additional 152 shares during the last quarter. Applied Finance Capital Management LLC grew its holdings in shares of Best Buy by 3.8% during the fourth quarter. Applied Finance Capital Management LLC now owns 4,270 shares of the technology retailer’s stock valued at $286,000 after purchasing an additional 157 shares during the last quarter. Finally, J. Team Financial Inc. raised its position in shares of Best Buy by 4.2% during the 4th quarter. J. Team Financial Inc. now owns 4,251 shares of the technology retailer’s stock worth $285,000 after purchasing an additional 171 shares during the period. 80.96% of the stock is owned by institutional investors and hedge funds.

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.