Best Buy (NYSE:BBY) Stock Rating Raised to Strong-Buy at DA Davidson

DA Davidson upgraded shares of Best Buy (NYSE:BBY) from a hold rating to a strong-buy rating in a research report report published on Thursday,Zacks reports.

BBY has been the subject of several other research reports. Telsey Advisory Group increased their price target on Best Buy from $90.00 to $95.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 4th. UBS Group reaffirmed a “neutral” rating and issued a $90.00 price target (up from $86.00) on shares of Best Buy in a report on Friday, August 28th. Weiss Ratings raised shares of Best Buy from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 29th. The Goldman Sachs Group lifted their price target on Best Buy from $62.00 to $71.00 and gave the stock a “sell” rating in a research note on Friday, August 28th. Finally, BNP Paribas Exane raised their price objective on Best Buy from $74.00 to $76.00 and gave the company a “neutral” rating in a research note on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Best Buy currently has a consensus rating of “Hold” and an average price target of $85.40.

Best Buy Stock Performance

Shares of BBY opened at $91.07 on Thursday. Best Buy has a 52 week low of $55.10 and a 52 week high of $96.53. 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 stock has a 50 day moving average price of $87.31 and a two-hundred day moving average price of $74.73. The firm has a market capitalization of $19.10 billion, a P/E ratio of 15.15, a P/E/G ratio of 2.37 and a beta of 1.28.

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

Best Buy Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be issued a $0.96 dividend. The ex-dividend date of this dividend 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 presently 63.89%.

Insider Buying and Selling

In other news, EVP Kathleen Scarlett sold 116,062 shares of the firm’s stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $92.15, for a total value of $10,695,113.30. Following the transaction, the executive vice president directly owned 116,173 shares in the company, valued at $10,705,341.95. This trade represents a 49.98% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Chairman Richard Schulze sold 300,000 shares of Best Buy stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $92.51, for a total transaction of $27,753,000.00. The SEC filing for this sale provides additional information. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Corient Private Wealth LP acquired a new stake in Best Buy during the 2nd quarter valued at $18,648,000. Canada Pension Plan Investment Board bought a new position in shares of Best Buy in the 2nd quarter worth $2,734,000. BlackRock Inc. acquired a new position in Best Buy during the second quarter valued at approximately $1,932,812,000. Meeder Asset Management Inc. acquired a new stake in shares of Best Buy during the second quarter worth about $1,224,000. Finally, United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund acquired a new stake in shares of Best Buy in the 4th quarter valued at about $8,311,000. Hedge funds and other institutional investors own 80.96% of the company’s stock.

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.