Best Buy (NYSE:BBY) Hits New 52-Week High – Should You Buy?

Best Buy Co., Inc. (NYSE:BBY) shares hit a new 52-week high during trading on Wednesday . The stock traded as high as $85.95 and last traded at $85.4370, with a volume of 216694 shares trading hands. The stock had previously closed at $81.65.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. KeyCorp reaffirmed a “sector weight” rating on shares of Best Buy in a report on Monday, June 22nd. Citigroup boosted their price target on Best Buy from $60.00 to $79.00 and gave the stock a “neutral” rating in a report on Friday, May 29th. Truist Financial upped their price objective on Best Buy from $66.00 to $81.00 and gave the stock a “hold” rating in a research report on Friday, May 29th. Evercore lifted their target price on Best Buy from $65.00 to $85.00 in a research report on Friday, May 29th. Finally, Wall Street Zen upgraded Best Buy from a “hold” rating to a “buy” rating in a research report on Sunday. Five research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $79.50.

Best Buy Trading Up 2.1%

The business’s 50 day simple moving average is $71.12 and its two-hundred day simple moving average is $67.23. The stock has a market cap of $18.07 billion, a P/E ratio of 15.82, a PEG ratio of 2.17 and a beta of 1.30. The company has a quick ratio of 0.40, a current ratio of 1.12 and a debt-to-equity ratio of 0.38.

Best Buy (NYSE:BBY) last announced its quarterly earnings results on Thursday, May 28th. The technology retailer reported $1.28 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.05. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The company had revenue of $8.94 billion during the quarter, compared to analysts’ expectations of $8.82 billion. During the same period in the prior year, the company earned $1.15 EPS. Best Buy’s revenue was up 1.9% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, analysts expect that Best Buy Co., Inc. will post 6.56 EPS for the current year.

Best Buy Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th were given a $0.96 dividend. The ex-dividend date was Thursday, June 18th. This represents a $3.84 annualized dividend and a yield of 4.5%. Best Buy’s dividend payout ratio (DPR) is currently 71.11%.

Insider Transactions at Best Buy

In other news, CAO Mathew Watson sold 1,784 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $73.80, for a total value of $131,659.20. Following the completion of the transaction, the chief accounting officer owned 21,630 shares of the company’s stock, valued at $1,596,294. This represents a 7.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Chairman Richard M. Schulze sold 224,705 shares of the firm’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the completion of the transaction, the chairman owned 10,430,936 shares of the company’s stock, valued at approximately $814,656,101.60. This trade represents a 2.11% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,002,134 shares of company stock worth $77,283,527 over the last three months. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Best Buy

A number of institutional investors have recently added to or reduced their stakes in the business. Trust Asset Management LLC acquired a new position in Best Buy in the 2nd quarter valued at approximately $165,000. Tema ETFs LLC lifted its holdings in shares of Best Buy by 6.5% during the second quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer’s stock worth $179,000 after purchasing an additional 145 shares during the period. KMG Fiduciary Partners LLC lifted its holdings in shares of Best Buy by 362.2% during the second quarter. KMG Fiduciary Partners LLC now owns 20,098 shares of the technology retailer’s stock worth $1,525,000 after purchasing an additional 15,750 shares during the period. LVM Capital Management Ltd. MI bought a new stake in shares of Best Buy in the second quarter worth $600,000. Finally, Legacy Wealth Asset Management LLC bought a new stake in shares of Best Buy in the second quarter worth $235,000. 80.96% of the stock is owned by institutional investors.

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.