Best Buy (NYSE:BBY) Reaches New 52-Week High – Still a Buy?

Best Buy Co., Inc. (NYSE:BBY) shares hit a new 52-week high on Thursday. The company traded as high as $96.70 and last traded at $96.6250, with a volume of 192,667 shares trading hands. The stock had previously closed at $94.12.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Wall Street Zen upgraded Best Buy from a “hold” rating to a “buy” rating in a research note on Sunday, October 11th. Evercore set a $95.00 price objective on Best Buy in a research note on Tuesday. Truist Financial set a $100.00 price objective on Best Buy in a report on Thursday, August 27th. DA Davidson raised Best Buy from a “hold” rating to a “strong-buy” rating in a research note on Thursday, September 24th. Finally, Weiss Ratings upgraded Best Buy from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $85.90.

Best Buy Stock Performance

The company has a market capitalization of $20.93 billion, a price-to-earnings ratio of 16.60, a PEG ratio of 2.35 and a beta of 1.26. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.12 and a quick ratio of 0.41. The stock has a 50 day simple moving average of $88.79 and a two-hundred day simple moving average of $78.19.

Best Buy (NYSE:BBY) last issued its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.08. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The business had revenue of $9.78 billion during the quarter, compared to the consensus estimate of $9.59 billion. During the same quarter in the previous year, the firm earned $1.28 EPS. The company’s revenue was up 3.6% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, analysts anticipate that Best Buy Co., Inc. will post 6.81 earnings per share for the current year.

Best Buy Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th were paid a dividend of $0.96 per share. The ex-dividend date of this dividend was Thursday, September 17th. This represents a $3.84 annualized dividend and a yield of 3.8%. Best Buy’s dividend payout ratio is currently 63.89%.

Insiders Place Their Bets

In other news, EVP Kathleen Scarlett sold 116,062 shares of the firm’s stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $92.15, for a total value of $10,695,113.30. Following the completion of the sale, the executive vice president directly owned 116,173 shares of the company’s stock, valued at $10,705,341.95. This trade represents a 49.98% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Richard M. Schulze sold 300,000 shares of the company’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $92.51, for a total value of $27,753,000.00. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Best Buy

Several institutional investors have recently made changes to their positions in the stock. Sepio Capital LP purchased a new stake in shares of Best Buy during the third quarter worth about $1,446,000. Brookstone Capital Management acquired a new position in shares of Best Buy in the third quarter valued at approximately $1,730,000. Isthmus Partners LLC purchased a new position in shares of Best Buy during the third quarter valued at approximately $18,258,000. Root Financial Partners LLC purchased a new position in shares of Best Buy during the third quarter valued at approximately $228,000. Finally, E. Ohman J or Asset Management AB boosted its position in Best Buy by 99.0% during the third quarter. E. Ohman J or Asset Management AB now owns 18,789 shares of the technology retailer’s stock worth $1,658,000 after acquiring an additional 9,347 shares during the last quarter. 80.96% of the stock is currently owned by hedge funds and other institutional investors.

Best Buy Company Profile

Best Buy Co, Inc is a specialty retailer of technology products and services headquartered in Richfield, Minnesota. The company sells consumer electronics, computing and mobile products, entertainment products, appliances, furniture, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology-related services, including product installation, repair, technical support, delivery, and in-home consultation. Its services are offered through brands and operations such as Geek Squad, while the company also provides membership and protection programs designed to support customers after purchase.

The company serves customers primarily in the United States and Canada.