Best Buy Co. (BBY) Trading -2.6% Higher Following Earnings Beat
Best Buy Co. (NYSE:BBY) traded up 2.6% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $46.72 and last traded at $44.79, with a volume of 8,177,761 shares. The stock had previously closed at $45.99.
The technology retailer reported $0.62 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.47 by $0.15. The company had revenue of $8.95 billion for the quarter, compared to the consensus estimate of $8.85 billion. Best Buy had a return on equity of 22.44% and a net margin of 2.62%. The company’s revenue for the quarter was up 1.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.41 EPS.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 29th. Stockholders of record on Thursday, December 8th will be given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.50%. The ex-dividend date of this dividend is Tuesday, December 6th. Best Buy’s dividend payout ratio is presently 36.48%.
A number of analysts have recently issued reports on the company. Telsey Advisory Group boosted their price objective on Best Buy from $42.00 to $48.00 and gave the company an “outperform” rating in a research report on Friday. Royal Bank Of Canada boosted their price objective on Best Buy from $42.00 to $47.00 and gave the company a “sector perform” rating in a research report on Friday. Wedbush boosted their price objective on Best Buy from $20.50 to $24.50 and gave the company an “underperform” rating in a research report on Friday. RBC Capital Markets boosted their price objective on Best Buy from $42.00 to $47.00 and gave the company a “sector perform” rating in a research report on Friday. Finally, Morgan Stanley reaffirmed a “buy” rating on shares of Best Buy in a research note on Friday. Three investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and nine have issued a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $38.89.
In related news, VP Mathew Watson sold 1,030 shares of the stock in a transaction that occurred on Thursday, August 25th. The stock was sold at an average price of $39.45, for a total transaction of $40,633.50. Following the completion of the transaction, the vice president now directly owns 18,876 shares of the company’s stock, valued at $744,658.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.21% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP boosted its position in shares of Best Buy by 47.8% in the first quarter. Wellington Management Group LLP now owns 386,571 shares of the technology retailer’s stock valued at $12,541,000 after buying an additional 125,055 shares during the period. National Pension Service boosted its position in shares of Best Buy by 4.7% in the first quarter. National Pension Service now owns 206,852 shares of the technology retailer’s stock valued at $6,710,000 after buying an additional 9,203 shares during the period. Legal & General Group Plc boosted its position in shares of Best Buy by 0.7% in the first quarter. Legal & General Group Plc now owns 1,497,028 shares of the technology retailer’s stock valued at $48,571,000 after buying an additional 10,100 shares during the period. Envestnet Asset Management Inc. boosted its position in shares of Best Buy by 5.9% in the first quarter. Envestnet Asset Management Inc. now owns 38,155 shares of the technology retailer’s stock valued at $1,238,000 after buying an additional 2,113 shares during the period. Finally, Natixis bought a new position in shares of Best Buy during the first quarter valued at approximately $541,000. 86.48% of the stock is owned by hedge funds and other institutional investors.
The company’s 50-day moving average is $39.16 and its 200 day moving average is $34.90. The company has a market capitalization of $14.21 billion, a PE ratio of 14.58 and a beta of 1.51.
About Best Buy
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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