Best Buy (NYSE:BBY) Trading 1.6% Higher – Still a Buy?

Shares of Best Buy Co., Inc. (NYSE:BBY) rose 1.6% during mid-day trading on Monday . The stock traded as high as $91.54 and last traded at $88.98. Approximately 1,408,714 shares changed hands during trading, a decline of 54% from the average daily volume of 3,073,104 shares. The stock had previously closed at $87.60.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on BBY. Citigroup reduced their target price on shares of Best Buy from $109.00 to $101.00 and set a “buy” rating for the company in a research note on Wednesday, November 27th. Wedbush increased their price objective on Best Buy from $85.00 to $95.00 and gave the stock a “neutral” rating in a report on Friday, August 30th. Truist Financial cut their target price on Best Buy from $107.00 to $95.00 and set a “hold” rating on the stock in a research note on Wednesday, November 27th. Piper Sandler reaffirmed an “overweight” rating and set a $114.00 price target (up from $100.00) on shares of Best Buy in a research note on Friday, August 30th. Finally, Guggenheim cut their price objective on shares of Best Buy from $110.00 to $105.00 and set a “buy” rating on the stock in a research report on Friday, November 29th. One analyst has rated the stock with a sell rating, eight have given a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $101.06.

Best Buy Stock Performance

The firm has a market capitalization of $18.93 billion, a price-to-earnings ratio of 15.21, a PEG ratio of 2.19 and a beta of 1.44. The company has a current ratio of 1.00, a quick ratio of 0.22 and a debt-to-equity ratio of 0.37. The stock’s 50-day moving average is $91.54 and its 200-day moving average is $90.54.

Best Buy (NYSE:BBY) last announced its quarterly earnings results on Tuesday, November 26th. The technology retailer reported $1.26 EPS for the quarter, missing analysts’ consensus estimates of $1.30 by ($0.04). The firm had revenue of $9.45 billion during the quarter, compared to the consensus estimate of $9.63 billion. Best Buy had a net margin of 3.01% and a return on equity of 45.93%. The firm’s revenue was down 3.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.29 earnings per share. On average, analysts predict that Best Buy Co., Inc. will post 6.18 EPS for the current fiscal year.

Best Buy Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 7th. Investors of record on Tuesday, December 17th will be issued a $0.94 dividend. The ex-dividend date is Tuesday, December 17th. This represents a $3.76 dividend on an annualized basis and a yield of 4.25%. Best Buy’s dividend payout ratio (DPR) is presently 64.27%.

Insiders Place Their Bets

In other news, CFO Matthew M. Bilunas sold 69,166 shares of the stock in a transaction dated Wednesday, December 11th. The stock was sold at an average price of $87.46, for a total value of $6,049,258.36. Following the completion of the sale, the chief financial officer now owns 92,070 shares of the company’s stock, valued at approximately $8,052,442.20. This represents a 42.90 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.59% of the company’s stock.

Institutional Trading of Best Buy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BBY. Richardson Financial Services Inc. boosted its stake in shares of Best Buy by 190.9% in the 2nd quarter. Richardson Financial Services Inc. now owns 320 shares of the technology retailer’s stock valued at $27,000 after purchasing an additional 210 shares during the last quarter. Innealta Capital LLC bought a new position in shares of Best Buy in the 2nd quarter worth about $35,000. Harbor Capital Advisors Inc. bought a new stake in shares of Best Buy during the 3rd quarter valued at about $40,000. LRI Investments LLC grew its stake in Best Buy by 632.1% during the third quarter. LRI Investments LLC now owns 388 shares of the technology retailer’s stock worth $40,000 after purchasing an additional 335 shares during the period. Finally, Whittier Trust Co. increased its holdings in Best Buy by 53.3% in the second quarter. Whittier Trust Co. now owns 492 shares of the technology retailer’s stock worth $41,000 after purchasing an additional 171 shares in the last quarter. Institutional investors and hedge funds own 80.96% of the company’s stock.

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.