Best Buy (NYSE:BBY) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “Best Buy’s extensive investments to upgrade operations with special focus on developing omni-channel capabilities, supply chain and cost reduction opportunities coupled with strengthening partnership with vendors bode well. The company’s “Best Buy 2020: Building the New Blue” program aims to explore growth opportunities and optimize cost. These efforts have helped the stock to outpace the industry in a year and continue post upbeat results, as evident from fourth-quarter fiscal 2018 performance. This prompted management to provide encouraging outlook for fiscal 2019. The company is also concentrating on enhancing mobile phone category in its big-box stores as well as online under its Mobile 2020 strategy. However, management hinted that higher investments in supply chain and increased transportation costs may weigh upon margins. International gross margin is also likely to remain under pressure during the first quarter.”
Other research analysts have also recently issued research reports about the stock. Telsey Advisory Group cut shares of Best Buy from an “outperform” rating to a “market perform” rating and increased 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 increased their target price on shares of Best Buy from $80.00 to $85.00 and gave the stock an “overweight” rating in a report on Tuesday, January 30th. UBS Group reissued a “neutral” rating and issued a $77.00 target price (up previously from $70.00) on shares of Best Buy in a report on Friday, March 2nd. Loop Capital raised shares of Best Buy to a “buy” rating in a report on Thursday, March 1st. Finally, Morgan Stanley reissued an “equal weight” rating and issued a $74.00 target price (up previously from $66.00) on shares of Best Buy in a report on Friday, March 2nd. Four analysts have rated the stock with a sell rating, ten have given a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. Best Buy presently has a consensus rating of “Hold” and a consensus target price of $69.25.
Best Buy (NYSE:BBY) last issued its earnings results on Thursday, March 1st. The technology retailer reported $2.42 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.05 by $0.37. Best Buy had a net margin of 2.37% and a return on equity of 32.68%. The business had revenue of $15.36 billion for the quarter, compared to the consensus estimate of $14.52 billion. During the same period in the previous year, the company earned $1.93 earnings per share. The firm’s revenue for the quarter was up 14.0% on a year-over-year basis. analysts predict that Best Buy will post 4.97 earnings per share for the current year.
In related news, SVP Mathew Watson sold 990 shares of the firm’s stock in a transaction that occurred on Tuesday, March 6th. The shares were sold at an average price of $77.21, for a total value of $76,437.90. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Gerard R. Vittecoq sold 23,684 shares of the firm’s stock in a transaction that occurred on Friday, March 2nd. The shares were sold at an average price of $74.12, for a total transaction of $1,755,458.08. Following the completion of the transaction, the director now owns 40,128 shares of the company’s stock, valued at approximately $2,974,287.36. The disclosure for this sale can be found here. In the last quarter, insiders sold 349,674 shares of company stock valued at $23,428,646. 0.84% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Bank of New York Mellon Corp raised its holdings in Best Buy by 31.5% in the 4th quarter. Bank of New York Mellon Corp now owns 5,279,548 shares of the technology retailer’s stock worth $361,491,000 after purchasing an additional 1,264,528 shares during the period. APG Asset Management N.V. boosted its position in Best Buy by 7.5% during the 4th quarter. APG Asset Management N.V. now owns 3,590,588 shares of the technology retailer’s stock worth $204,736,000 after purchasing an additional 250,300 shares during the period. Renaissance Technologies LLC boosted its position in Best Buy by 61.0% during the 4th quarter. Renaissance Technologies LLC now owns 3,379,200 shares of the technology retailer’s stock worth $231,374,000 after purchasing an additional 1,280,600 shares during the period. LSV Asset Management boosted its position in Best Buy by 7.2% during the 4th quarter. LSV Asset Management now owns 2,347,893 shares of the technology retailer’s stock worth $160,760,000 after purchasing an additional 156,800 shares during the period. Finally, Allianz Asset Management GmbH boosted its position in Best Buy by 13.8% during the 4th quarter. Allianz Asset Management GmbH now owns 2,130,632 shares of the technology retailer’s stock worth $145,884,000 after purchasing an additional 258,020 shares during the period. Institutional investors and hedge funds own 85.73% of the company’s stock.
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 has operations in the United States, Canada and Mexico. The Company operates through two segments: Domestic and International.
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