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

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

Wall Street Analyst Weigh In

A number of brokerages have recently commented on BBY. BNP Paribas Exane lifted their price objective on Best Buy from $74.00 to $76.00 and gave the company a “neutral” rating in a research report on Friday, May 29th. DA Davidson reiterated a “buy” rating and set a $90.00 target price on shares of Best Buy in a research report on Monday, June 22nd. The Goldman Sachs Group lifted their price target on Best Buy from $59.00 to $62.00 and gave the company a “sell” rating in a report on Friday, May 29th. Morgan Stanley upped their price objective on shares of Best Buy from $72.00 to $80.00 and gave the company an “equal weight” rating in a research note on Friday, May 29th. Finally, Wall Street Zen lowered shares of Best Buy from a “buy” rating to a “hold” rating in a report on Monday, July 20th. Five equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Best Buy has a consensus rating of “Hold” and an average price target of $79.50.

Best Buy Price Performance

The company has a market capitalization 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. The company has a quick ratio of 0.40, a current ratio of 1.12 and a debt-to-equity ratio of 0.38. The company has a 50 day simple moving average of $75.59 and a 200 day simple moving average of $68.18.

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 business had revenue of $8.94 billion for the quarter, compared to analyst estimates of $8.82 billion. During the same period in the previous year, the company posted $1.15 EPS. The company’s revenue was up 1.9% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, research analysts predict that Best Buy Co., Inc. will post 6.56 EPS for the current year.

Best Buy Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th were paid a dividend of $0.96 per share. This represents a $3.84 annualized dividend and a yield of 4.3%. The ex-dividend date was Thursday, June 18th. Best Buy’s payout ratio is currently 71.11%.

Insiders Place Their Bets

In other news, Chairman Richard M. Schulze sold 500,350 shares of the firm’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $76.12, for a total value of $38,086,642.00. Following the transaction, the chairman owned 10,930,586 shares of the company’s stock, valued at approximately $832,036,206.32. This trade represents a 4.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Mathew Watson sold 1,784 shares of Best Buy stock in a transaction on Friday, May 29th. The shares were sold at an average price of $73.80, for a total transaction of $131,659.20. Following the transaction, the chief accounting officer owned 21,630 shares in the company, valued at $1,596,294. The trade was a 7.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 1,002,134 shares of company stock worth $77,283,527. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Best Buy

Institutional investors and hedge funds have recently modified their holdings of the stock. Concurrent Investment Advisors LLC boosted its stake in shares of Best Buy by 100.6% in the fourth quarter. Concurrent Investment Advisors LLC now owns 70,280 shares of the technology retailer’s stock valued at $4,704,000 after purchasing an additional 35,239 shares during the period. PFA Pension Forsikringsaktieselskab acquired a new stake in Best Buy during the 4th quarter valued at $1,741,000. VIRGINIA RETIREMENT SYSTEMS ET Al increased its stake in Best Buy by 42.9% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 225,000 shares of the technology retailer’s stock worth $15,059,000 after buying an additional 67,600 shares during the period. Oxbow Advisors LLC purchased a new stake in Best Buy during the 4th quarter worth $6,295,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in Best Buy by 8.8% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 478,965 shares of the technology retailer’s stock worth $33,180,000 after buying an additional 38,739 shares in the last quarter. Hedge funds and other institutional investors own 80.96% of the company’s stock.

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.