Best Buy (BBY) Lifted to Strong-Buy at Zacks Investment Research

Best Buy (NYSE:BBY) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Friday. The brokerage currently has a $84.00 target price on the technology retailer’s stock. Zacks Investment Research‘s price target indicates a potential upside of 16.31% from the company’s current price.

According to Zacks, “Best Buy’s extensive investments to upgrade operations with special focus on developing omni-channel capabilities and strengthening partnership with vendors bode well. Moreover, following the completion of “Renew Blue” program, it launched a fresh strategy called “Best Buy 2020: Building the New Blue” aimed to explore growth opportunities and optimize cost. These efforts have helped the stock to outpace the industry in a year and continue register top and bottom-line growth in spite of prevailing headwinds. Certainly, tough retail landscape, aggressive promotional strategies and waning store traffic remain matters of concern. Further, analysts believe that higher investments may strain margins to an extent. Moreover, the company’s lower-than-expected third-quarter results due to lack of new mobile launches also add to woes but that did not deter management to provide an upbeat outlook for fiscal 2018.”

A number of other research firms have also weighed in on BBY. Telsey Advisory Group lowered Best Buy from an “outperform” rating to a “market perform” rating and upped their target price for the stock from $62.00 to $81.00 in a report on Thursday, January 25th. They noted that the move was a valuation call. Barclays restated a “buy” rating and set a $85.00 target price (up previously from $80.00) on shares of Best Buy in a report on Tuesday. Loop Capital set a $80.00 target price on Best Buy and gave the stock a “buy” rating in a report on Tuesday, January 16th. ValuEngine upgraded Best Buy from a “hold” rating to a “buy” rating in a report on Friday. Finally, Wedbush set a $38.00 target price on Best Buy and gave the stock a “sell” rating in a report on Monday, January 8th. Four analysts have rated the stock with a sell rating, six have issued a hold rating, eleven have issued a buy rating and two have issued a strong buy rating to the company. The stock currently has an average rating of “Hold” and an average target price of $62.97.

Shares of Best Buy (NYSE BBY) traded down $0.88 during midday trading on Friday, hitting $72.22. The company had a trading volume of 2,162,214 shares, compared to its average volume of 3,283,030. The company has a quick ratio of 0.52, a current ratio of 1.25 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $21,357.37 and a price-to-earnings ratio of 18.35. Best Buy has a 12-month low of $41.67 and a 12-month high of $78.59.

Best Buy (NYSE:BBY) last announced its quarterly earnings results on Thursday, November 16th. The technology retailer reported $0.78 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.78. The firm had revenue of $9.32 billion during the quarter, compared to analyst estimates of $9.36 billion. Best Buy had a return on equity of 28.46% and a net margin of 3.09%. Best Buy’s quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.60 earnings per share. equities research analysts anticipate that Best Buy will post 4.04 earnings per share for the current year.

In related news, major shareholder Richard M. Schulze sold 250,000 shares of the company’s stock in a transaction on Monday, December 18th. The stock was sold at an average price of $66.83, for a total value of $16,707,500.00. Following the transaction, the insider now directly owns 1,732,500 shares of the company’s stock, valued at approximately $115,782,975. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, General Counsel Keith J. Nelsen sold 44,235 shares of the stock in a transaction dated Wednesday, November 22nd. The stock was sold at an average price of $56.78, for a total value of $2,511,663.30. Following the sale, the general counsel now directly owns 107,503 shares in the company, valued at $6,104,020.34. The disclosure for this sale can be found here. Over the last three months, insiders sold 3,134,253 shares of company stock worth $191,063,125. 1.21% of the stock is owned by insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in BBY. Bank of New York Mellon Corp grew its position in Best Buy by 27.5% during the 3rd quarter. Bank of New York Mellon Corp now owns 4,015,020 shares of the technology retailer’s stock worth $228,696,000 after purchasing an additional 866,787 shares during the period. APG Asset Management N.V. boosted its stake in shares of Best Buy by 27.6% during the 3rd quarter. APG Asset Management N.V. now owns 3,340,288 shares of the technology retailer’s stock worth $190,263,000 after acquiring an additional 723,500 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in shares of Best Buy by 6,630.4% during the 4th quarter. Assenagon Asset Management S.A. now owns 645,175 shares of the technology retailer’s stock worth $44,175,000 after acquiring an additional 635,589 shares in the last quarter. 1060 Capital LLC purchased a new stake in shares of Best Buy during the 3rd quarter worth about $35,849,000. Finally, Janus Henderson Group PLC boosted its stake in shares of Best Buy by 128.2% during the 2nd quarter. Janus Henderson Group PLC now owns 585,527 shares of the technology retailer’s stock worth $33,570,000 after acquiring an additional 328,907 shares in the last quarter. 88.57% of the stock is currently owned by institutional investors.

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About Best Buy

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 has operations in the United States, Canada and Mexico. The Company operates through two segments: Domestic and International.

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