Best Buy Target of Unusually High Options Trading (NYSE:BBY)

Best Buy Co., Inc. (NYSE:BBY) was the target of some unusual options trading activity on Thursday. Traders purchased 10,104 call options on the stock. This represents an increase of approximately 21% compared to the average volume of 8,348 call options.

Insider Buying and Selling at Best Buy

In other Best Buy news, CFO Matthew M. Bilunas sold 11,356 shares of the company’s stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $727,011.12. Following the transaction, the chief financial officer owned 76,884 shares in the company, valued at approximately $4,922,113.68. This represents a 12.87% 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 Jason J. Bonfig sold 6,336 shares of the company’s stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $405,630.72. Following the transaction, the executive vice president owned 79,137 shares in the company, valued at $5,066,350.74. This represents a 7.41% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 77,247 shares of company stock worth $4,945,353. 0.47% of the stock is owned by company insiders.

Hedge Funds Weigh In On Best Buy

Hedge funds have recently made changes to their positions in the business. Torren Management LLC bought a new position in shares of Best Buy in the fourth quarter worth about $25,000. MV Capital Management Inc. bought a new position in shares of Best Buy in the fourth quarter worth about $25,000. Palisade Asset Management LLC bought a new position in shares of Best Buy in the third quarter worth about $25,000. Hillsdale Investment Management Inc. bought a new position in shares of Best Buy in the fourth quarter worth about $29,000. Finally, Quest 10 Wealth Builders Inc. boosted its stake in shares of Best Buy by 239.2% in the fourth quarter. Quest 10 Wealth Builders Inc. now owns 441 shares of the technology retailer’s stock worth $30,000 after acquiring an additional 311 shares during the period. Institutional investors own 80.96% of the company’s stock.

Best Buy Price Performance

NYSE BBY opened at $78.16 on Friday. The company has a market capitalization of $16.47 billion, a PE ratio of 14.47, a price-to-earnings-growth 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. The business’s fifty day moving average is $62.29 and its 200 day moving average is $66.88. Best Buy has a fifty-two week low of $55.10 and a fifty-two week high of $84.99.

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

Best Buy Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be paid a $0.96 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.9%. Best Buy’s dividend payout ratio is 76.19%.

Best Buy News Roundup

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

Wall Street Analysts Forecast Growth

Several analysts recently commented on BBY shares. UBS Group reaffirmed a “neutral” rating and issued a $86.00 price objective (up from $85.00) on shares of Best Buy in a report on Friday. Citigroup lifted their price objective on Best Buy from $60.00 to $79.00 and gave the stock a “neutral” rating in a report on Friday. KeyCorp reaffirmed a “sector weight” rating on shares of Best Buy in a report on Wednesday, March 4th. HSBC cut their price objective on Best Buy from $96.00 to $85.00 in a report on Thursday, February 26th. Finally, Piper Sandler reaffirmed a “neutral” rating and issued a $77.00 price objective on shares of Best Buy in a report on Thursday. Six research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Best Buy has a consensus rating of “Hold” and an average target price of $78.60.

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.