Best Buy (NYSE:BBY) Shares Gap Down on Analyst Downgrade

Best Buy Co., Inc. (NYSE:BBY)’s stock price gapped down before the market opened on Tuesday after Truist Financial lowered their price target on the stock from $107.00 to $95.00. The stock had previously closed at $93.03, but opened at $86.56. Truist Financial currently has a hold rating on the stock. Best Buy shares last traded at $85.61, with a volume of 1,927,809 shares traded.

Several other equities analysts have also recently issued reports on BBY. Melius Research assumed coverage on Best Buy in a research note on Monday, September 23rd. They issued a “hold” rating and a $100.00 price objective for the company. Piper Sandler restated an “overweight” rating and issued a $114.00 price objective (up previously from $100.00) on shares of Best Buy in a research note on Friday, August 30th. Evercore ISI raised their target price on shares of Best Buy from $90.00 to $94.00 and gave the stock an “in-line” rating in a research report on Friday, August 30th. Loop Capital lowered their price target on Best Buy from $110.00 to $100.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, The Goldman Sachs Group upped their price objective on Best Buy from $95.00 to $116.00 and gave the company a “buy” rating in a research note on Tuesday, September 3rd. One analyst has rated the stock with a sell rating, eight have issued a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, Best Buy presently has an average rating of “Moderate Buy” and a consensus target price of $100.82.

Hedge Funds Weigh In On Best Buy

A number of large investors have recently made changes to their positions in BBY. QRG Capital Management Inc. grew its position in Best Buy by 10.5% during the third quarter. QRG Capital Management Inc. now owns 31,745 shares of the technology retailer’s stock worth $3,279,000 after buying an additional 3,025 shares during the period. GAMMA Investing LLC grew its holdings in shares of Best Buy by 78.7% in the 2nd quarter. GAMMA Investing LLC now owns 2,039 shares of the technology retailer’s stock worth $172,000 after acquiring an additional 898 shares during the period. Asset Management One Co. Ltd. increased its stake in Best Buy by 27.4% in the 3rd quarter. Asset Management One Co. Ltd. now owns 90,341 shares of the technology retailer’s stock valued at $9,332,000 after purchasing an additional 19,405 shares in the last quarter. Envestnet Portfolio Solutions Inc. raised its holdings in Best Buy by 11.4% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 74,764 shares of the technology retailer’s stock worth $6,302,000 after purchasing an additional 7,663 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. boosted its position in Best Buy by 13.3% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 154,564 shares of the technology retailer’s stock worth $15,806,000 after purchasing an additional 18,171 shares in the last quarter. Hedge funds and other institutional investors own 80.96% of the company’s stock.

Best Buy Price Performance

The company has a market cap of $18.93 billion, a price-to-earnings ratio of 15.20, a price-to-earnings-growth ratio of 2.44 and a beta of 1.47. The company has a quick ratio of 0.34, a current ratio of 1.01 and a debt-to-equity ratio of 0.37. The company has a fifty day simple moving average of $94.16 and a two-hundred day simple moving average of $89.07.

Best Buy (NYSE:BBY) last posted its earnings results on Thursday, August 29th. The technology retailer reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.18. Best Buy had a net margin of 2.96% and a return on equity of 47.19%. The firm had revenue of $9.29 billion during the quarter, compared to the consensus estimate of $9.23 billion. During the same period last year, the firm posted $1.22 EPS. The firm’s revenue for the quarter was down 3.1% on a year-over-year basis. On average, equities research analysts anticipate that Best Buy Co., Inc. will post 6.28 earnings per share for the current fiscal year.

Best Buy Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 7th. Investors of record on Tuesday, December 17th will be given a dividend of $0.94 per share. The ex-dividend date of this dividend is Tuesday, December 17th. This represents a $3.76 annualized dividend and a dividend yield of 4.27%. Best Buy’s dividend payout ratio is currently 64.83%.

Best Buy Company Profile

Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.