Best Buy Co. (BBY) Upgraded to Buy at Zacks Investment Research
Best Buy Co. (NYSE:BBY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The brokerage presently has a $43.00 price target on the technology retailer’s stock. Zacks Investment Research’s target price would indicate a potential upside of 10.54% from the stock’s previous close.
According to Zacks, “Best Buy continues with its positive earnings surprise streak for the 15th quarter in row, when it reported second-quarter fiscal 2017 results, wherein earnings increased 16.3% year-over-year. We observed that online comparable sales surged 23.7% driven by improved traffic and conversion rates. The company is making extensive investments to upgrade its operations with special focus on developing omni-channel capacities and strengthening partnership with vendors. For the third quarter management expects Enterprise revenues between $8.8 billion and $8.9 billion, reflecting a flat to 0.1% increase from the prior year, while coms are expected to increase nearly 1%. However, the company projects international revenues in the range of flat to down 5%. Declining international sales remains a concern for the company.”
A number of other equities research analysts have also recently commented on BBY. Wedbush reiterated a “sell” rating and issued a $20.50 target price on shares of Best Buy in a research report on Thursday, August 25th. RBC Capital Markets reiterated a “buy” rating and issued a $42.00 target price (up from $36.00) on shares of Best Buy in a research report on Thursday, August 25th. Vetr cut shares of Best Buy from a “buy” rating to a “hold” rating and set a $39.59 target price for the company. in a research report on Tuesday, August 23rd. Citigroup Inc. increased their target price on shares of Best Buy from $32.00 to $40.00 and gave the company a “neutral” rating in a research report on Wednesday, August 24th. Finally, Morgan Stanley increased their target price on shares of Best Buy from $28.00 to $35.00 and gave the company a “buy” rating in a research report on Wednesday, August 24th. Three analysts have rated the stock with a sell rating, eleven have issued a hold rating and eleven have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $37.69.
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Shares of Best Buy (NYSE:BBY) opened at 38.90 on Tuesday. Best Buy has a 52-week low of $25.31 and a 52-week high of $40.58. The stock has a market capitalization of $12.34 billion, a PE ratio of 12.66 and a beta of 1.47. The firm has a 50-day moving average of $37.92 and a 200 day moving average of $33.37.
Best Buy (NYSE:BBY) last posted its quarterly earnings data on Tuesday, August 23rd. The technology retailer reported $0.57 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.43 by $0.14. The business had revenue of $8.53 billion for the quarter, compared to the consensus estimate of $8.40 billion. Best Buy had a net margin of 2.62% and a return on equity of 22.44%. The company’s revenue was up .1% compared to the same quarter last year. During the same period last year, the firm posted $0.49 earnings per share. Equities research analysts forecast that Best Buy will post $3.05 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 4th. Shareholders of record on Tuesday, September 13th were issued a dividend of $0.28 per share. The ex-dividend date was Friday, September 9th. This represents a $1.12 dividend on an annualized basis and a yield of 2.88%. Best Buy’s payout ratio is currently 36.48%.
In other news, VP Mathew Watson sold 1,030 shares of Best Buy stock in a transaction on Thursday, August 25th. The shares were sold at an average price of $39.45, for a total value of $40,633.50. Following the transaction, the vice president now directly owns 18,876 shares of the company’s stock, valued at approximately $744,658.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 1.21% of the company’s stock.
Several institutional investors have recently made changes to their positions in BBY. Mizuho Asset Management Co. Ltd. boosted its position in shares of Best Buy by 100.4% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 3,725 shares of the technology retailer’s stock worth $114,000 after buying an additional 1,866 shares during the last quarter. Pacer Advisors Inc. boosted its position in shares of Best Buy by 6.6% in the second quarter. Pacer Advisors Inc. now owns 4,063 shares of the technology retailer’s stock worth $124,000 after buying an additional 253 shares during the last quarter. Global X Management Co. LLC boosted its position in shares of Best Buy by 128.9% in the second quarter. Global X Management Co. LLC now owns 5,379 shares of the technology retailer’s stock worth $165,000 after buying an additional 3,029 shares during the last quarter. Loomis Sayles & Co. L P boosted its position in shares of Best Buy by 2,685.2% in the second quarter. Loomis Sayles & Co. L P now owns 5,821 shares of the technology retailer’s stock worth $178,000 after buying an additional 5,612 shares during the last quarter. Finally, Alambic Investment Management L.P. acquired a new position in shares of Best Buy during the second quarter worth approximately $211,000. 87.63% of the stock is currently owned by institutional investors and hedge funds.
Best Buy Company Profile
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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