Best Buy Co. (BBY) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Best Buy Co. (NYSE:BBY) from a hold rating to a buy rating in a research note published on Tuesday. Zacks Investment Research currently has $43.00 price target on the technology retailer’s stock.
According to Zacks, “Best Buy continues with its positive earnings surprise streak for the 15th quarter in row, when it reported second-quarter fiscal 2017 results, wherein earnings increased 16.3% year-over-year. We observed that online comparable sales surged 23.7% driven by improved traffic and conversion rates. The company is making extensive investments to upgrade its operations with special focus on developing omni-channel capacities and strengthening partnership with vendors. For the third quarter management expects Enterprise revenues between $8.8 billion and $8.9 billion, reflecting a flat to 0.1% increase from the prior year, while coms are expected to increase nearly 1%. However, the company projects international revenues in the range of flat to down 5%. Declining international sales remains a concern for the company.”
Several other research firms have also weighed in on BBY. Bank of America Corp. reiterated a buy rating on shares of Best Buy in a report on Thursday, June 23rd. SunTrust Banks Inc. upped their price objective on shares of Best Buy from $39.00 to $45.00 and gave the stock a buy rating in a report on Wednesday, August 24th. Raymond James Financial Inc. upped their price objective on shares of Best Buy from $38.00 to $45.00 and gave the stock a buy rating in a report on Wednesday, August 24th. Longbow Research initiated coverage on shares of Best Buy in a report on Thursday, June 16th. They issued a neutral rating on the stock. Finally, Morgan Stanley restated a buy rating and issued a $28.00 price objective on shares of Best Buy in a report on Wednesday, July 6th. Three equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and eleven have assigned a buy rating to the company. The stock currently has an average rating of Hold and an average target price of $37.69.
Shares of Best Buy (NYSE:BBY) traded up 0.90% during trading on Tuesday, reaching $38.32. 836,621 shares of the company traded hands. Best Buy has a 52 week low of $25.31 and a 52 week high of $40.58. The company has a market capitalization of $12.16 billion, a price-to-earnings ratio of 12.47 and a beta of 1.47. The firm’s 50 day moving average price is $37.52 and its 200-day moving average price is $33.25.
Best Buy (NYSE:BBY) last posted its earnings results on Tuesday, August 23rd. The technology retailer reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.14. The company had revenue of $8.53 billion for the quarter, compared to analyst estimates of $8.40 billion. Best Buy had a net margin of 2.62% and a return on equity of 22.44%. Best Buy’s revenue was up .1% on a year-over-year basis. During the same period in the previous year, the business posted $0.49 EPS. Equities analysts anticipate that Best Buy will post $3.05 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Tuesday, October 4th. Stockholders of record on Tuesday, September 13th were paid a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 2.95%. The ex-dividend date of this dividend was Friday, September 9th. Best Buy’s dividend payout ratio (DPR) is presently 36.48%.
In other news, VP Mathew Watson sold 1,030 shares of the firm’s stock in a transaction on Thursday, August 25th. The shares were sold at an average price of $39.45, for a total value of $40,633.50. Following the completion of the sale, the vice president now owns 18,876 shares in the company, valued at approximately $744,658.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.21% of the stock is currently owned by insiders.
Several hedge funds have recently added to or reduced their stakes in the company. Advantus Capital Management Inc boosted its stake in Best Buy by 0.4% in the second quarter. Advantus Capital Management Inc now owns 27,269 shares of the technology retailer’s stock valued at $834,000 after buying an additional 108 shares during the period. Blair William & Co. IL boosted its stake in shares of Best Buy by 0.7% in the second quarter. Blair William & Co. IL now owns 17,829 shares of the technology retailer’s stock valued at $546,000 after buying an additional 125 shares during the period. World Asset Management Inc boosted its stake in shares of Best Buy by 0.5% in the second quarter. World Asset Management Inc now owns 31,449 shares of the technology retailer’s stock valued at $962,000 after buying an additional 172 shares during the period. Pacer Advisors Inc. boosted its stake in shares of Best Buy by 6.6% in the second quarter. Pacer Advisors Inc. now owns 4,063 shares of the technology retailer’s stock valued at $124,000 after buying an additional 253 shares during the period. Finally, Commonwealth Bank of Australia boosted its stake in shares of Best Buy by 0.4% in the second quarter. Commonwealth Bank of Australia now owns 104,853 shares of the technology retailer’s stock valued at $3,209,000 after buying an additional 367 shares during the period. Institutional investors own 87.63% of the company’s stock.
Best Buy Company Profile
Best Buy Co, Inc is a provider of technology products, services and solutions. The Company offers products and services to the customers visiting its stores, engaging with Geek Squad agents or using its Websites or mobile applications. It operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home.
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