Best Buy (NYSE:BBY) Sees Strong Trading Volume After Better-Than-Expected Earnings

Best Buy Co., Inc. (NYSE:BBYGet Rating) shares saw unusually-high trading volume on Tuesday following a better than expected earnings announcement. Approximately 123,713 shares were traded during trading, a decline of 95% from the previous session’s volume of 2,744,313 shares.The stock last traded at $76.31 and had previously closed at $70.83.

The technology retailer reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.03 by $0.35. The company had revenue of $10.59 billion during the quarter, compared to the consensus estimate of $10.30 billion. Best Buy had a return on equity of 57.98% and a net margin of 3.60%. The company’s quarterly revenue was down 11.1% on a year-over-year basis. During the same quarter last year, the company earned $2.08 EPS.

Best Buy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, October 11th. Stockholders of record on Tuesday, September 20th were paid a $0.88 dividend. The ex-dividend date of this dividend was Monday, September 19th. This represents a $3.52 annualized dividend and a dividend yield of 4.41%. Best Buy’s dividend payout ratio (DPR) is currently 47.18%.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on BBY. Wells Fargo & Company decreased their price objective on Best Buy from $82.00 to $70.00 and set an “equal weight” rating for the company in a research note on Thursday, July 28th. Citigroup boosted their target price on Best Buy from $59.00 to $61.00 and gave the company a “sell” rating in a research note on Wednesday, August 31st. Jefferies Financial Group cut Best Buy from a “buy” rating to a “hold” rating and decreased their target price for the company from $106.00 to $71.00 in a research note on Thursday, July 28th. The Goldman Sachs Group boosted their price target on Best Buy from $56.00 to $59.00 and gave the company a “buy” rating in a report on Tuesday. Finally, Truist Financial boosted their price target on Best Buy from $67.00 to $69.00 and gave the company a “hold” rating in a report on Wednesday, August 31st. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $82.88.

Insiders Place Their Bets

In other Best Buy news, EVP Damien Harmon sold 1,308 shares of the business’s stock in a transaction that occurred on Friday, September 9th. The stock was sold at an average price of $76.58, for a total transaction of $100,166.64. Following the transaction, the executive vice president now owns 44,910 shares of the company’s stock, valued at $3,439,207.80. The sale was disclosed in a document filed with the SEC, which is available through this link. In other news, EVP Kathleen Scarlett sold 25,071 shares of the company’s stock in a transaction that occurred on Monday, September 19th. The stock was sold at an average price of $72.37, for a total value of $1,814,388.27. Following the transaction, the executive vice president now owns 50,101 shares of the company’s stock, valued at $3,625,809.37. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Damien Harmon sold 1,308 shares of the company’s stock in a transaction that occurred on Friday, September 9th. The shares were sold at an average price of $76.58, for a total value of $100,166.64. Following the completion of the transaction, the executive vice president now directly owns 44,910 shares in the company, valued at approximately $3,439,207.80. The disclosure for this sale can be found here. Insiders have sold a total of 26,533 shares of company stock valued at $1,925,382 over the last 90 days. 0.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Best Buy

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Best Buy by 0.5% during the third quarter. Vanguard Group Inc. now owns 26,161,759 shares of the technology retailer’s stock worth $1,657,087,000 after buying an additional 131,280 shares in the last quarter. State Street Corp lifted its stake in Best Buy by 12.7% during the third quarter. State Street Corp now owns 10,350,936 shares of the technology retailer’s stock worth $664,704,000 after purchasing an additional 1,169,374 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Best Buy by 43.3% during the third quarter. Price T Rowe Associates Inc. MD now owns 6,945,507 shares of the technology retailer’s stock worth $439,930,000 after purchasing an additional 2,099,663 shares during the last quarter. Northern Trust Corp lifted its stake in Best Buy by 2.0% during the second quarter. Northern Trust Corp now owns 3,744,729 shares of the technology retailer’s stock worth $244,119,000 after purchasing an additional 72,608 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in Best Buy by 6.8% during the first quarter. Charles Schwab Investment Management Inc. now owns 3,720,949 shares of the technology retailer’s stock worth $338,235,000 after purchasing an additional 236,513 shares during the last quarter. Institutional investors and hedge funds own 79.86% of the company’s stock.

Best Buy Stock Up 12.8 %

The firm has a 50 day simple moving average of $68.00 and a two-hundred day simple moving average of $73.04. The company has a quick ratio of 0.27, a current ratio of 0.96 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $17.98 billion, a P/E ratio of 10.71, a PEG ratio of 0.66 and a beta of 1.46.

About Best Buy

(Get Rating)

Best Buy Co, Inc retails technology products in the United States and Canada. The company operates in two segments, Domestic and International. Its stores provide computing 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, home theater, portable audio comprising headphones and portable speakers, and smart home products.

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