Best Buy Co., Inc. (NYSE:BBY) Announces Quarterly Dividend of $0.94

Best Buy Co., Inc. (NYSE:BBY) announced a quarterly dividend on Thursday, May 30th, RTT News reports. Investors of record on Thursday, June 20th will be paid a dividend of 0.94 per share by the technology retailer on Thursday, July 11th. This represents a $3.76 dividend on an annualized basis and a yield of 4.12%. The ex-dividend date is Thursday, June 20th.

Best Buy has increased its dividend payment by an average of 18.7% per year over the last three years and has increased its dividend annually for the last 21 consecutive years. Best Buy has a payout ratio of 56.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Best Buy to earn $6.79 per share next year, which means the company should continue to be able to cover its $3.76 annual dividend with an expected future payout ratio of 55.4%.

Best Buy Price Performance

Shares of BBY stock opened at $91.26 on Tuesday. The firm has a market cap of $19.69 billion, a price-to-earnings ratio of 15.98, a PEG ratio of 2.81 and a beta of 1.49. Best Buy has a 12 month low of $62.30 and a 12 month high of $91.85. The stock has a 50-day moving average price of $77.76 and a 200 day moving average price of $76.82. The company has a quick ratio of 0.33, a current ratio of 1.01 and a debt-to-equity ratio of 0.37.

Best Buy (NYSE:BBY) last posted its earnings results on Thursday, May 30th. The technology retailer reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.12. Best Buy had a return on equity of 47.56% and a net margin of 2.90%. The company had revenue of $8.85 billion during the quarter, compared to analyst estimates of $8.96 billion. During the same period in the previous year, the company earned $1.15 EPS. The company’s revenue for the quarter was down 6.5% compared to the same quarter last year. Research analysts expect that Best Buy will post 6.11 EPS for the current year.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on BBY. Morgan Stanley increased their target price on Best Buy from $80.00 to $82.00 and gave the stock an “equal weight” rating in a research note on Friday, March 1st. Jefferies Financial Group lowered their target price on Best Buy from $95.00 to $94.00 and set a “buy” rating for the company in a research note on Monday, April 8th. Wedbush reissued a “neutral” rating and set a $85.00 target price on shares of Best Buy in a research note on Tuesday, May 28th. The Goldman Sachs Group increased their target price on Best Buy from $81.00 to $90.00 and gave the stock a “buy” rating in a research note on Friday, March 1st. Finally, UBS Group raised Best Buy from a “neutral” rating to a “buy” rating and upped their price target for the stock from $85.00 to $106.00 in a research report on Monday. Seven investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat.com, Best Buy has an average rating of “Moderate Buy” and an average target price of $90.87.

Insider Activity

In other news, Chairman Richard M. Schulze sold 1,000,000 shares of the stock in a transaction that occurred on Thursday, May 30th. The stock was sold at an average price of $80.21, for a total value of $80,210,000.00. Following the completion of the sale, the chairman now owns 8,850 shares of the company’s stock, valued at approximately $709,858.50. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In other news, CAO Mathew Watson sold 2,505 shares of the stock in a transaction that occurred on Friday, March 22nd. The stock was sold at an average price of $81.80, for a total value of $204,909.00. Following the completion of the sale, the chief accounting officer now owns 25,638 shares of the company’s stock, valued at approximately $2,097,188.40. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Chairman Richard M. Schulze sold 1,000,000 shares of the stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $80.21, for a total value of $80,210,000.00. Following the completion of the sale, the chairman now directly owns 8,850 shares of the company’s stock, valued at approximately $709,858.50. The disclosure for this sale can be found here. In the last 90 days, insiders sold 2,052,023 shares of company stock valued at $170,313,900. 0.59% of the stock is owned by insiders.

Best Buy Company Profile

Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.