Best Buy Co. (NYSE:BBY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $43.00 price objective on the technology retailer’s stock. Zacks Investment Research’s price objective points to a potential upside of 12.62% from the company’s previous close.
According to Zacks, “Best Buy continues with its positive earnings surprise streak for the 15th quarter in row, when it reported second-quarter fiscal 2017 results, wherein earnings increased 16.3% year-over-year. We observed that online comparable sales surged 23.7% driven by improved traffic and conversion rates. The company is making extensive investments to upgrade its operations with special focus on developing omni-channel capacities and strengthening partnership with vendors. For the third quarter management expects Enterprise revenues between $8.8 billion and $8.9 billion, reflecting a flat to 0.1% increase from the prior year, while coms are expected to increase nearly 1%. However, the company projects international revenues in the range of flat to down 5%. Declining international sales remains a concern for the company.”
BBY has been the topic of a number of other reports. Bank of America Corp. restated a “sell” rating and issued a $29.00 price objective on shares of Best Buy in a report on Wednesday, August 24th. Vetr upgraded shares of Best Buy from a “hold” rating to a “buy” rating and set a $39.59 price objective on the stock in a report on Thursday, September 8th. Citigroup Inc. raised their price objective on shares of Best Buy from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Wednesday, August 24th. Barclays PLC restated a “buy” rating and issued a $45.00 price objective on shares of Best Buy in a report on Wednesday, September 14th. Finally, Morgan Stanley raised their price objective on shares of Best Buy from $28.00 to $35.00 and gave the company a “buy” rating in a report on Wednesday, August 24th. Three analysts have rated the stock with a sell rating, eleven have given a hold rating and eleven have issued a buy rating to the company’s stock. Best Buy currently has a consensus rating of “Hold” and an average price target of $37.69.
Shares of Best Buy (NYSE:BBY) traded down 0.24% during midday trading on Tuesday, hitting $38.09. 1,604,892 shares of the stock were exchanged. The stock has a 50 day moving average price of $37.42 and a 200-day moving average price of $33.21. Best Buy has a 12 month low of $25.31 and a 12 month high of $40.58. The company has a market cap of $12.08 billion, a PE ratio of 12.40 and a beta of 1.47.
Best Buy (NYSE:BBY) last released its earnings results on Tuesday, August 23rd. The technology retailer reported $0.57 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.43 by $0.14. The company had revenue of $8.53 billion for the quarter, compared to analyst estimates of $8.40 billion. Best Buy had a net margin of 2.62% and a return on equity of 22.44%. The firm’s quarterly revenue was up .1% on a year-over-year basis. During the same period in the prior year, the business earned $0.49 EPS. On average, analysts predict that Best Buy will post $3.05 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 4th. Shareholders of record on Tuesday, September 13th will be given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 2.93%. The ex-dividend date is Friday, September 9th. Best Buy’s payout ratio is currently 36.48%.
In other Best Buy news, VP Mathew Watson sold 1,030 shares of Best Buy stock in a transaction dated Thursday, August 25th. The shares were sold at an average price of $39.45, for a total transaction of $40,633.50. Following the completion of the transaction, the vice president now owns 18,876 shares in the company, valued at $744,658.20. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 1.21% of the company’s stock.
A number of institutional investors have recently made changes to their positions in the company. Mizuho Asset Management Co. Ltd. boosted its position in shares of Best Buy by 100.4% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 3,725 shares of the technology retailer’s stock worth $114,000 after buying an additional 1,866 shares during the last quarter. Pacer Advisors Inc. boosted its position in shares of Best Buy by 6.6% in the second quarter. Pacer Advisors Inc. now owns 4,063 shares of the technology retailer’s stock worth $124,000 after buying an additional 253 shares during the last quarter. Global X Management Co. LLC boosted its position in shares of Best Buy by 128.9% in the second quarter. Global X Management Co. LLC now owns 5,379 shares of the technology retailer’s stock worth $165,000 after buying an additional 3,029 shares during the last quarter. Loomis Sayles & Co. L P boosted its position in shares of Best Buy by 2,685.2% in the second quarter. Loomis Sayles & Co. L P now owns 5,821 shares of the technology retailer’s stock worth $178,000 after buying an additional 5,612 shares during the last quarter. Finally, Alambic Investment Management L.P. acquired a new position in shares of Best Buy during the second quarter worth about $211,000. Institutional investors own 87.63% of the company’s stock.
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 operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home.
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