KeyCorp Issues Negative Outlook for Best Buy Earnings

Best Buy Co., Inc. (NYSE:BBY) – Analysts at KeyCorp lowered their Q2 2027 earnings per share (EPS) estimates for shares of Best Buy in a research report issued to clients and investors on Thursday, May 28th. KeyCorp analyst B. Thomas now expects that the technology retailer will post earnings per share of $1.36 for the quarter, down from their previous forecast of $1.38. KeyCorp currently has a “Sector Weight” rating on the stock. The consensus estimate for Best Buy’s current full-year earnings is $6.55 per share. KeyCorp also issued estimates for Best Buy’s Q3 2027 earnings at $1.36 EPS, Q4 2027 earnings at $2.51 EPS, FY2027 earnings at $6.50 EPS and FY2028 earnings at $6.90 EPS.

Several other research firms also recently weighed in on BBY. Guggenheim reissued a “buy” rating and set a $90.00 price objective on shares of Best Buy in a report on Friday, May 29th. DA Davidson reissued a “buy” rating and set a $78.00 price objective on shares of Best Buy in a report on Friday, May 29th. Weiss Ratings lowered Best Buy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, May 7th. Wedbush raised their target price on Best Buy from $70.00 to $75.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Finally, Loop Capital raised their target price on Best Buy from $75.00 to $85.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Six research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Best Buy presently has a consensus rating of “Hold” and an average price target of $79.05.

Best Buy Trading Down 1.3%

NYSE BBY opened at $71.84 on Thursday. The company has a quick ratio of 0.40, a current ratio of 1.12 and a debt-to-equity ratio of 0.38. Best Buy has a twelve month low of $55.10 and a twelve month high of $84.99. The company has a market cap of $15.14 billion, a price-to-earnings ratio of 13.30, a price-to-earnings-growth ratio of 1.94 and a beta of 1.30. The business’s fifty day moving average is $62.87 and its 200 day moving average is $66.72.

Best Buy (NYSE:BBY) last released its quarterly earnings data on Thursday, May 28th. The technology retailer reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.23 by $0.05. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The company had revenue of $8.94 billion for the quarter, compared to the consensus estimate of $8.82 billion. During the same quarter last year, the business posted $1.15 EPS. Best Buy’s revenue for the quarter was up 1.9% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Huntington National Bank boosted its stake in Best Buy by 12.0% during the 3rd quarter. Huntington National Bank now owns 1,298 shares of the technology retailer’s stock valued at $98,000 after purchasing an additional 139 shares during the last quarter. Krane Funds Advisors LLC boosted its stake in Best Buy by 3.0% during the 4th quarter. Krane Funds Advisors LLC now owns 5,163 shares of the technology retailer’s stock valued at $346,000 after purchasing an additional 151 shares during the last quarter. Linden Thomas Advisory Services LLC boosted its stake in Best Buy by 0.9% during the 4th 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 boosted its stake in Best Buy by 3.8% during the 4th 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, International Private Wealth Advisors LLC boosted its stake in Best Buy by 5.2% during the 4th quarter. International Private Wealth Advisors LLC now owns 3,345 shares of the technology retailer’s stock valued at $224,000 after purchasing an additional 165 shares during the last quarter. 80.96% of the stock is owned by institutional investors.

Insider Transactions at Best Buy

In other news, EVP Kathleen Scarlett sold 8,049 shares of Best Buy stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $515,296.98. Following the completion of the transaction, the executive vice president directly owned 102,669 shares of the company’s stock, valued at approximately $6,572,869.38. This trade represents a 7.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Matthew M. Bilunas sold 11,356 shares of Best Buy stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $727,011.12. Following the completion of the transaction, the chief financial officer directly owned 76,884 shares of the company’s stock, valued at approximately $4,922,113.68. This trade represents a 12.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 579,381 shares of company stock worth $43,163,654. Corporate insiders own 0.47% of the company’s stock.

Best Buy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be given a $0.96 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $3.84 annualized dividend and a dividend yield of 5.3%. Best Buy’s dividend payout ratio (DPR) is 71.11%.

More Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Daiwa Securities lifted its price target on BBY to $77 from $68, suggesting improved expectations even though the firm kept a neutral rating. Other analysts also raised targets recently, which can help support the stock. MarketScreener
• Positive Sentiment: Best Buy’s latest quarterly results topped estimates on both EPS and revenue, and management maintained its FY2027 outlook, reinforcing the view that the business is executing well. Yahoo Finance
• Positive Sentiment: Media coverage around Best Buy’s AI laptop assortment, marketplace growth, and other new product initiatives has fueled optimism that the retailer may be finding new growth drivers. MarketBeat
• Neutral Sentiment: Jim Cramer highlighted Best Buy in recent commentary, and other coverage noted the stock’s strong year-to-date performance and dividend yield. These items may support sentiment, but they are not direct catalysts. Yahoo Finance
• Negative Sentiment: Chairman Richard M. Schulze sold 500,350 shares, and CAO Mathew Watson also sold shares. Insider selling can weigh on investor confidence, especially after a strong run in the stock. SEC filing
• Negative Sentiment: One report said BBY underperformed peers on Tuesday, hinting that traders may be rotating away from the stock despite recent operational improvements. MarketWatch

Best Buy Company Profile

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.