Stock Traders Buy High Volume of Best Buy Call Options (NYSE:BBY)

Best Buy Co., Inc. (NYSE:BBY) was the recipient of unusually large options trading activity on Thursday. Stock investors acquired 10,104 call options on the company. This represents an increase of approximately 21% compared to the average daily volume of 8,348 call options.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. BNP Paribas Exane increased their price target on shares of Best Buy from $68.00 to $74.00 and gave the company a “neutral” rating in a report on Wednesday, March 4th. Truist Financial cut their price target on shares of Best Buy from $73.00 to $66.00 and set a “hold” rating for the company in a report on Tuesday, March 3rd. Wells Fargo & Company dropped their target price on shares of Best Buy from $70.00 to $60.00 and set an “equal weight” rating for the company in a report on Thursday, May 14th. HSBC dropped their target price on shares of Best Buy from $96.00 to $85.00 in a report on Thursday, February 26th. Finally, Jefferies Financial Group raised their target price on shares of Best Buy from $83.00 to $89.00 and gave the company a “buy” rating in a report on Thursday. Eight investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $70.70.

Insider Activity

In other news, CAO Mathew Watson sold 3,298 shares of the firm’s stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total value of $211,137.96. Following the completion of the sale, the chief accounting officer owned 23,192 shares in the company, valued at approximately $1,484,751.84. This trade represents a 12.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Kathleen Scarlett sold 8,049 shares of the firm’s stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total transaction of $515,296.98. Following the completion of the sale, the executive vice president owned 102,669 shares of the company’s stock, valued at $6,572,869.38. This trade represents a 7.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 77,247 shares of company stock worth $4,945,353 over the last 90 days. 0.47% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Best Buy

Several hedge funds have recently modified their holdings of BBY. Torren Management LLC acquired a new stake in shares of Best Buy during the 4th quarter worth about $25,000. MV Capital Management Inc. acquired a new stake in shares of Best Buy during the 4th quarter worth about $25,000. Palisade Asset Management LLC acquired a new stake in shares of Best Buy during the 3rd quarter worth about $25,000. Hillsdale Investment Management Inc. acquired a new stake in shares of Best Buy during the 4th quarter worth about $29,000. Finally, Quest 10 Wealth Builders Inc. boosted its stake in shares of Best Buy by 239.2% during the 4th quarter. Quest 10 Wealth Builders Inc. now owns 441 shares of the technology retailer’s stock worth $30,000 after purchasing an additional 311 shares during the last quarter. 80.96% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Best Buy

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy beat Q1 EPS and revenue estimates, with comparable sales turning positive and margins improving. Best Buy Reports First Quarter Results
• Positive Sentiment: The company reaffirmed its outlook and issued FY2027 guidance that was close to consensus, reducing concern about a near-term slowdown. Best Buy Surges on Earnings. Its 5% Yield Looks Even Better.
• Positive Sentiment: Jefferies raised its price target on BBY to $89 and reiterated a buy rating, suggesting additional upside after the earnings rally. Best Buy price target raised by Jefferies
• Neutral Sentiment: Management highlighted demand strength in gaming and computing, partly offset by weakness in appliances, showing the recovery is uneven. Best Buy beats on top and bottom lines as retailer aims to reinvigorate sales

Best Buy Stock Performance

NYSE:BBY opened at $74.84 on Friday. The company has a current ratio of 1.11, a quick ratio of 0.43 and a debt-to-equity ratio of 0.39. The firm has a 50-day moving average price of $61.99 and a two-hundred day moving average price of $66.80. Best Buy has a twelve month low of $55.10 and a twelve month high of $84.99. The company has a market capitalization of $15.77 billion, a P/E ratio of 14.85, a price-to-earnings-growth ratio of 1.59 and a beta of 1.22.

Best Buy (NYSE:BBY) last released its quarterly earnings results on Thursday, May 28th. The technology retailer reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.22 by $0.06. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The company had revenue of $8.94 billion for the quarter, compared to analysts’ expectations of $8.82 billion. During the same period last year, the company earned $1.15 EPS. The firm’s revenue for the quarter was up 1.9% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, research analysts expect that Best Buy will post 6.5 earnings per share for the current fiscal year.

Best Buy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th will be paid a dividend of $0.96 per share. This represents a $3.84 annualized dividend and a dividend yield of 5.1%. The ex-dividend date of this dividend is Thursday, June 18th. Best Buy’s dividend payout ratio (DPR) is currently 76.19%.

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.