Traders Buy Best Buy (BBY) on Weakness

Investors purchased shares of Best Buy Co Inc (NYSE:BBY) on weakness during trading on Monday. $56.17 million flowed into the stock on the tick-up and $35.67 million flowed out of the stock on the tick-down, for a money net flow of $20.50 million into the stock. Of all stocks tracked, Best Buy had the 32nd highest net in-flow for the day. Best Buy traded down ($0.07) for the day and closed at $74.96

Several research firms recently commented on BBY. Evercore ISI began coverage on shares of Best Buy in a report on Wednesday, March 20th. They issued an “in-line” rating and a $75.00 price target on the stock. Wedbush restated a “neutral” rating and issued a $65.00 price target on shares of Best Buy in a report on Friday, February 22nd. Bank of America upgraded shares of Best Buy from an “underperform” rating to a “neutral” rating and set a $50.00 price target on the stock in a report on Wednesday, February 27th. Zacks Investment Research lowered shares of Best Buy from a “hold” rating to a “sell” rating in a report on Wednesday, January 23rd. Finally, Jefferies Financial Group upgraded shares of Best Buy from a “hold” rating to a “buy” rating and raised their price target for the company from $72.00 to $88.00 in a report on Wednesday, April 24th. Eleven investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Best Buy currently has a consensus rating of “Hold” and a consensus price target of $77.88.

The company has a current ratio of 1.18, a quick ratio of 0.46 and a debt-to-equity ratio of 0.40. The stock has a market cap of $20.09 billion, a PE ratio of 14.09, a P/E/G ratio of 1.51 and a beta of 0.94.

Best Buy (NYSE:BBY) last issued its quarterly earnings data on Wednesday, February 27th. The technology retailer reported $2.72 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.57 by $0.15. Best Buy had a net margin of 3.41% and a return on equity of 46.33%. The company had revenue of $14.80 billion during the quarter, compared to the consensus estimate of $14.69 billion. During the same quarter last year, the company earned $2.42 earnings per share. Best Buy’s revenue for the quarter was down 3.7% on a year-over-year basis. On average, research analysts predict that Best Buy Co Inc will post 5.66 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 10th. Shareholders of record on Wednesday, March 20th were given a $0.50 dividend. This is an increase from Best Buy’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend was Tuesday, March 19th. This represents a $2.00 annualized dividend and a yield of 2.67%. Best Buy’s dividend payout ratio (DPR) is 37.59%.

Best Buy announced that its Board of Directors has initiated a stock buyback plan on Wednesday, February 27th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the technology retailer to reacquire up to 18.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

In other Best Buy news, major shareholder Richard M. Schulze sold 492,000 shares of the stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $68.50, for a total value of $33,702,000.00. Following the completion of the sale, the insider now owns 1,732,500 shares of the company’s stock, valued at $118,676,250. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Mathew Watson sold 380 shares of the stock in a transaction that occurred on Wednesday, March 13th. The shares were sold at an average price of $68.79, for a total transaction of $26,140.20. Following the completion of the sale, the senior vice president now directly owns 20,206 shares of the company’s stock, valued at approximately $1,389,970.74. The disclosure for this sale can be found here. Insiders sold 1,440,995 shares of company stock valued at $99,946,348 in the last ninety days. 0.75% of the stock is owned by corporate insiders.

A number of large investors have recently modified their holdings of BBY. Oregon Public Employees Retirement Fund grew its position in shares of Best Buy by 3,134.7% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 3,280,289 shares of the technology retailer’s stock worth $62,000 after buying an additional 3,178,881 shares in the last quarter. Norges Bank acquired a new stake in shares of Best Buy during the fourth quarter worth approximately $145,454,000. FMR LLC grew its position in shares of Best Buy by 3.6% during the fourth quarter. FMR LLC now owns 23,545,963 shares of the technology retailer’s stock worth $1,246,994,000 after buying an additional 816,394 shares in the last quarter. PGGM Investments acquired a new stake in shares of Best Buy during the fourth quarter worth approximately $40,447,000. Finally, Swedbank grew its position in shares of Best Buy by 29.4% during the fourth quarter. Swedbank now owns 2,852,296 shares of the technology retailer’s stock worth $146,437,000 after buying an additional 647,234 shares in the last quarter. 84.26% of the stock is owned by institutional investors.

COPYRIGHT VIOLATION NOTICE: This piece of content was originally published by The Lincolnian Online and is owned by of The Lincolnian Online. If you are accessing this piece of content on another publication, it was illegally copied and republished in violation of US and international copyright laws. The original version of this piece of content can be read at https://www.thelincolnianonline.com/2019/05/06/traders-buy-best-buy-bby-on-weakness.html.

Best Buy Company Profile (NYSE:BBY)

Best Buy Co, Inc operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide consumer electronics, including digital imaging, health and fitness, home automation, home theater, and portable audio products; computing and mobile phones, such as computing and peripherals, networking products, tablets, smart watches, and e-readers, as well as mobile phones comprising related mobile network carrier commissions; and entertainment products, including drones, movies, music, and technology toys, as well as gaming hardware and software, and virtual reality and other software products.

Featured Story: Should I follow buy, hold and sell recommendations?

Receive News & Ratings for Best Buy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Best Buy and related companies with MarketBeat.com's FREE daily email newsletter.