Best Buy (NYSE:BBY) Shares Down 7.6% - Here's Why

Best Buy Co., Inc. (NYSE:BBY) saw its shares decline by 7.6% in mid-day trading on Tuesday. The stock reached a low of $83.81 before closing at $85.99. In total, approximately 4,461,743 shares exchanged hands, marking a 47% increase over the usual daily trading volume of 3,032,734 shares, down from the previous close of $93.03.

Analysts Update Price Targets

Recent analyses from various equity analysts have resulted in new price target recommendations for Best Buy. On September 3rd, the Goldman Sachs Group increased its target price from $95.00 to $116.00, rating the stock as a 'buy'. Meanwhile, Bank of America adjusted its target from $70.00 to $80.00 with an 'underperform' rating as of August 30th. On the same day, Wedbush raised its target from $85.00 to $95.00 with a 'neutral' rating, and Wells Fargo also increased their target from $80.00 to $95.00, listing it as 'equal weight'. Additionally, DA Davidson upheld a 'buy' rating with a target price of $117.00 on October 15th. Overall, one analyst has given a sell rating, eight have rated it as hold, nine as buy, and one has given it a strong buy, leading to a consensus rating of 'Moderate Buy' and an average target price of $103.71 according to MarketBeat.com.

Best Buy's Stock Performance

As for its stock performance, Best Buy has a fifty-day moving average of $94.60 and a two-hundred day moving average of $88.97. With a market capitalization of $18.82 billion, the firm demonstrates a price-to-earnings ratio of 14.83 and a price-to-earnings-growth ratio of 2.34, suggesting moderate growth expectations. The company holds a debt-to-equity ratio of 0.37 and a current ratio of 1.01, indicating a solid financial position.

The last quarterly earnings report for Best Buy was released on August 29th. The technology retailer reported $1.34 earnings per share (EPS), which surpassed the consensus estimate of $1.16 by a notable margin. Revenue for the quarter was $9.29 billion, beating analyst expectations of $9.23 billion. However, revenue experienced a decline of 3.1% compared to the same quarter the previous year. The prior year’s EPS was reported at $1.22. Analysts predict that Best Buy will achieve an EPS of 6.28 for the current year.

Dividend Information

Recently, Best Buy announced its quarterly dividend, which was paid to investors on October 10th. Shareholders on record as of September 19th received a dividend payout of $0.94. This is equivalent to an annualized dividend of $3.76, representing a yield of 4.29%. The company maintains a dividend payout ratio (DPR) of 64.83%.

Institutional Trading Activity

In the recent trading landscape, several hedge funds have adjusted their positions in Best Buy shares. Richardson Financial Services Inc. boosted its holdings by 190.9% during the second quarter, now owning 320 shares valued at around $27,000. Innealta Capital LLC also acquired a new stake worth $35,000 during the same quarter. Harbor Capital Advisors Inc. purchased shares valued at $40,000, while LRI Investments LLC increased its position by 632.1% during the third quarter, owning 388 shares valued at $40,000. Additionally, Whittier Trust Co. raised its stake by 53.3% to maintain 492 shares worth $41,000. Currently, institutional investors and hedge funds own approximately 80.96% of the outstanding shares.

Best Buy Overview

Best Buy Co., Inc. operates in retail, focusing on technology products across the U.S., Canada, and internationally. Their stores offer a wide range of products including computing and mobile devices, consumer electronics, smart home products, health and fitness gadgets, and home theater systems.

Notable Insights

Investors and analysts are closely watching the market reactions and upcoming performance of Best Buy. As the technology landscape continues to evolve, many speculate about how demand for electronics and technological upgrades, particularly in areas like AI, will influence Best Buy's future success.

BestBuy, Stocks, Earnings