Best Buy (NYSE:BBY) Shares Down 7.6% After Analyst Downgrade

Best Buy Co., Inc. (NYSE:BBY)’s stock price fell 7.6% on Tuesday after Truist Financial lowered their price target on the stock from $107.00 to $95.00. Truist Financial currently has a hold rating on the stock. Best Buy traded as low as $83.81 and last traded at $85.99. 4,461,743 shares traded hands during trading, an increase of 47% from the average session volume of 3,032,734 shares. The stock had previously closed at $93.03.

A number of other equities analysts have also recently weighed in on the company. Barclays lifted their price target on Best Buy from $81.00 to $95.00 and gave the stock an “equal weight” rating in a research note on Friday, August 30th. Melius Research assumed coverage on shares of Best Buy in a research report on Monday, September 23rd. They issued a “hold” rating and a $100.00 target price on the stock. Wedbush upped their price target on shares of Best Buy from $85.00 to $95.00 and gave the company a “neutral” rating in a research report on Friday, August 30th. BNP Paribas upgraded shares of Best Buy to a “strong-buy” rating in a research report on Thursday, August 29th. Finally, UBS Group cut their target price on shares of Best Buy from $123.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $100.82.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Richardson Financial Services Inc. boosted its holdings in Best Buy by 190.9% in the second quarter. Richardson Financial Services Inc. now owns 320 shares of the technology retailer’s stock worth $27,000 after purchasing an additional 210 shares in the last quarter. Innealta Capital LLC acquired a new position in shares of Best Buy during the 2nd quarter valued at about $35,000. Harbor Capital Advisors Inc. bought a new position in shares of Best Buy in the 3rd quarter valued at approximately $40,000. LRI Investments LLC lifted its holdings in Best Buy by 632.1% in the 3rd quarter. LRI Investments LLC now owns 388 shares of the technology retailer’s stock worth $40,000 after purchasing an additional 335 shares during the last quarter. Finally, Whittier Trust Co. boosted its position in Best Buy by 53.3% during the second quarter. Whittier Trust Co. now owns 492 shares of the technology retailer’s stock worth $41,000 after purchasing an additional 171 shares during the period. Institutional investors and hedge funds own 80.96% of the company’s stock.

Best Buy Stock Performance

The firm has a fifty day simple moving average of $94.16 and a 200 day simple moving average of $89.07. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.01 and a quick ratio of 0.34. The company has a market cap of $18.93 billion, a price-to-earnings ratio of 15.20, a P/E/G ratio of 2.44 and a beta of 1.47.

Best Buy (NYSE:BBY) last announced its earnings results on Thursday, August 29th. The technology retailer reported $1.34 EPS for the quarter, topping 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 for the quarter, compared to the consensus estimate of $9.23 billion. During the same quarter last year, the firm posted $1.22 EPS. The business’s quarterly revenue was down 3.1% on a year-over-year basis. On average, sell-side analysts expect that Best Buy Co., Inc. will post 6.28 earnings per share for the current fiscal year.

Best Buy Dividend Announcement

The firm 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 presently 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.