Best Buy’s (BBY) Buy Rating Reaffirmed at Guggenheim

Guggenheim reiterated their buy rating on shares of Best Buy (NYSE:BBY) in a report released on Friday,Benzinga reports. They currently have a $90.00 target price on the technology retailer’s stock.

A number of other research analysts also recently commented on the stock. Weiss Ratings downgraded shares of Best Buy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, May 7th. Wells Fargo & Company boosted their price objective on shares of Best Buy from $60.00 to $65.00 and gave the company an “equal weight” rating in a research report on Thursday. Citigroup boosted their target price on shares of Best Buy from $60.00 to $79.00 and gave the stock a “neutral” rating in a research report on Friday. Jefferies Financial Group boosted their target price on shares of Best Buy from $83.00 to $89.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Piper Sandler reissued a “neutral” rating and issued a $77.00 target price on shares of Best Buy in a research report on Thursday. Six research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $78.60.

Best Buy Stock Performance

Shares of BBY opened at $78.16 on Friday. The company’s 50 day moving average price is $62.29 and its 200 day moving average price is $66.88. Best Buy has a 52 week low of $55.10 and a 52 week high of $84.99. The company has a market capitalization of $16.47 billion, a PE ratio of 14.47, a PEG ratio of 1.85 and a beta of 1.22. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.43 and a current ratio of 1.12.

Best Buy (NYSE:BBY) last announced its quarterly earnings data on Thursday, May 28th. The technology retailer reported $1.28 EPS for the quarter, beating analysts’ consensus estimates of $1.22 by $0.06. Best Buy had a net margin of 2.73% and a return on equity of 48.70%. The firm had revenue of $8.94 billion for the quarter, compared to the consensus estimate of $8.82 billion. During the same period in the previous year, the firm posted $1.15 earnings per share. The firm’s revenue was up 1.9% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Research analysts expect that Best Buy will post 6.5 EPS for the current fiscal year.

Best Buy Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors 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 yield of 4.9%. The ex-dividend date is Thursday, June 18th. Best Buy’s dividend payout ratio is presently 76.19%.

Insider Activity

In related news, CEO Corie S. Barry sold 42,869 shares of the company’s stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $2,744,473.38. Following the completion of the transaction, the chief executive officer directly owned 523,138 shares in the company, valued at $33,491,294.76. This represents a 7.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Kathleen Scarlett sold 8,049 shares of the company’s stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $515,296.98. Following the transaction, the executive vice president owned 102,669 shares of the company’s stock, valued at approximately $6,572,869.38. The trade was a 7.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 77,247 shares of company stock worth $4,945,353. Corporate insiders own 0.47% of the company’s stock.

Hedge Funds Weigh In On Best Buy

Several large investors have recently bought and sold shares of BBY. Woodline Partners LP raised its stake in Best Buy by 40.1% during the 1st quarter. Woodline Partners LP now owns 16,436 shares of the technology retailer’s stock valued at $1,210,000 after purchasing an additional 4,701 shares during the last quarter. Daiwa Securities Group Inc. raised its stake in Best Buy by 4.4% during the 2nd quarter. Daiwa Securities Group Inc. now owns 29,560 shares of the technology retailer’s stock valued at $1,984,000 after purchasing an additional 1,234 shares during the last quarter. Investment Management Corp of Ontario raised its stake in Best Buy by 127.7% during the 2nd quarter. Investment Management Corp of Ontario now owns 12,997 shares of the technology retailer’s stock valued at $872,000 after purchasing an additional 7,288 shares during the last quarter. Ieq Capital LLC increased its holdings in Best Buy by 155.4% in the 2nd quarter. Ieq Capital LLC now owns 160,568 shares of the technology retailer’s stock valued at $10,779,000 after buying an additional 97,688 shares during the period. Finally, Alliancebernstein L.P. increased its holdings in Best Buy by 32.0% in the 2nd quarter. Alliancebernstein L.P. now owns 313,584 shares of the technology retailer’s stock valued at $21,051,000 after buying an additional 76,102 shares during the period. 80.96% of the stock is currently owned by institutional investors and hedge funds.

More Best Buy News

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

• Positive Sentiment: Best Buy reported Q1 adjusted EPS of $1.28, above estimates of $1.22, and revenue of $8.94 billion, also ahead of forecasts, with comparable sales rising 2.0%. Best Buy Q1 Earnings Beat Estimates, Comparable Sales Rise 2%
• Positive Sentiment: The company reaffirmed its full-year guidance and highlighted improving margins and stronger demand in gaming, computing, and cellphones, suggesting the turnaround is gaining traction. Best Buy Reports First Quarter Results
• Positive Sentiment: Several analyst firms raised price targets after the earnings release, including Jefferies, Loop Capital, Guggenheim, Morgan Stanley, Citigroup, and others, indicating improving sentiment around the stock. Analyst rating updates
• Positive Sentiment: Retail-industry news also pointed to selective consumer spending still favoring value-focused names like Best Buy, adding to the rally. Retail Rally Sends Kohl’s, Best Buy, Dollar Tree Up As Much As 18%
• Neutral Sentiment: DA Davidson reaffirmed its buy rating but set a $78 price target, which is roughly in line with the current share price and does not materially change the valuation debate. DA Davidson rating reaffirmation
• Neutral Sentiment: Best Buy also announced a quarterly dividend of $0.96 per share, reinforcing its income appeal for investors. Dividend announcement

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.