Best Buy (NYSE:BBY) Hits New 12-Month High – Still a Buy?

Best Buy Co., Inc. (NYSE:BBY)’s stock price reached a new 52-week high during trading on Wednesday . The stock traded as high as $85.95 and last traded at $85.4370, with a volume of 216694 shares changing hands. The stock had previously closed at $81.65.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on BBY shares. Weiss Ratings upgraded Best Buy from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, June 11th. Piper Sandler restated a “neutral” rating and issued a $77.00 target price on shares of Best Buy in a research note on Thursday, May 28th. Loop Capital lowered Best Buy from a “buy” rating to a “hold” rating and set a $82.00 target price on the stock. in a report on Monday. JPMorgan Chase & Co. lifted their price target on Best Buy from $76.00 to $84.00 and gave the company a “neutral” rating in a research report on Friday, May 29th. Finally, The Goldman Sachs Group boosted their price target on Best Buy from $59.00 to $62.00 and gave the company a “sell” rating in a report on Friday, May 29th. Five research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $79.50.

Best Buy Stock Performance

The business’s 50-day simple moving average is $72.19 and its two-hundred day simple moving average is $67.45. The company has a quick ratio of 0.40, a current ratio of 1.12 and a debt-to-equity ratio of 0.38. The firm has a market cap of $18.01 billion, a price-to-earnings ratio of 15.83, a P/E/G ratio of 2.27 and a beta of 1.30.

Best Buy (NYSE:BBY) last posted its earnings results on Thursday, May 28th. The technology retailer reported $1.28 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.05. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The firm had revenue of $8.94 billion for the quarter, compared to analysts’ expectations of $8.82 billion. During the same period last year, the firm earned $1.15 EPS. The company’s quarterly 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. As a group, sell-side analysts expect that Best Buy Co., Inc. will post 6.56 earnings per share for the current fiscal year.

Best Buy Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th were issued a $0.96 dividend. This represents a $3.84 annualized dividend and a yield of 4.5%. The ex-dividend date of this dividend was Thursday, June 18th. Best Buy’s dividend payout ratio (DPR) is presently 71.11%.

Insider Buying and Selling

In related news, CAO Mathew Watson sold 1,784 shares of Best Buy stock in a transaction on Friday, May 29th. The shares were sold at an average price of $73.80, for a total value of $131,659.20. Following the sale, the chief accounting officer owned 21,630 shares of the company’s stock, valued at approximately $1,596,294. This trade represents a 7.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Richard M. Schulze sold 224,705 shares of Best Buy stock in a transaction on Friday, June 26th. The shares were sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the completion of the sale, the chairman directly owned 10,430,936 shares in the company, valued at $814,656,101.60. This represents a 2.11% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,002,134 shares of company stock valued at $77,283,527 over the last 90 days. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Best Buy

Large investors have recently added to or reduced their stakes in the stock. Tema ETFs LLC grew its position in shares of Best Buy by 6.5% in the second quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer’s stock valued at $179,000 after purchasing an additional 145 shares during the period. Krane Funds Advisors LLC lifted its stake in Best Buy by 3.0% in the 4th quarter. Krane Funds Advisors LLC now owns 5,163 shares of the technology retailer’s stock valued at $346,000 after buying an additional 151 shares in the last quarter. Linden Thomas Advisory Services LLC lifted its stake in Best Buy by 0.9% in the 4th quarter. Linden Thomas Advisory Services LLC now owns 16,637 shares of the technology retailer’s stock valued at $1,114,000 after buying an additional 152 shares in the last quarter. Applied Finance Capital Management LLC boosted its holdings in Best Buy by 3.8% in the 4th quarter. Applied Finance Capital Management LLC now owns 4,270 shares of the technology retailer’s stock worth $286,000 after buying an additional 157 shares during the last quarter. Finally, International Private Wealth Advisors LLC boosted its holdings in Best Buy by 5.2% in the 4th quarter. International Private Wealth Advisors LLC now owns 3,345 shares of the technology retailer’s stock worth $224,000 after buying an additional 165 shares during the last quarter. 80.96% of the stock is currently owned by institutional investors and hedge funds.

About Best Buy

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.