Best Buy (NYSE:BBY) Shares Gap Down – Here’s Why

Best Buy Co., Inc. (NYSE:BBY) shares gapped down prior to trading on Thursday . The stock had previously closed at $87.44, but opened at $80.60. Best Buy shares last traded at $84.1880, with a volume of 2,727,126 shares changing hands.

Key Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy reported adjusted earnings of $1.47 per share, ahead of the roughly $1.37–$1.39 analyst consensus, while revenue reached $9.78 billion versus expectations of $9.59 billion. Revenue increased 3.6% year over year, and comparable sales rose 4.1% overall and 4.5% domestically. Best Buy Reports Second Quarter Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.70–$6.90 from $6.30–$6.60 and increased its sales forecast to approximately $42.3–$42.8 billion, above the $42.1 billion consensus estimate. Best Buy Raises Outlook as Sales Grow
• Positive Sentiment: Strength in computing and demand for technology upgrades, replacements, AI-related products and collectibles supported the quarter and helped reinforce the company’s turnaround narrative. Best Buy Beats Q2 Earnings Across the Board

Wall Street Analyst Weigh In

BBY has been the topic of several research analyst reports. Citigroup raised their price objective on shares of Best Buy from $79.00 to $88.00 and gave the stock a “neutral” rating in a research note on Thursday, August 13th. BNP Paribas Exane upped their target price on shares of Best Buy from $74.00 to $76.00 and gave the company a “neutral” rating in a research note on Friday, May 29th. KeyCorp reiterated a “sector weight” rating on shares of Best Buy in a research note on Monday, June 22nd. Daiwa Securities Group increased their price target on shares of Best Buy from $68.00 to $77.00 and gave the company a “neutral” rating in a report on Tuesday, June 2nd. Finally, UBS Group restated a “neutral” rating and issued a $86.00 price target (up from $85.00) on shares of Best Buy in a research report on Friday, May 29th. Six analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $83.10.

Best Buy Stock Performance

The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.40 and a current ratio of 1.12. The company has a market capitalization of $17.63 billion, a P/E ratio of 15.46, a price-to-earnings-growth ratio of 2.44 and a beta of 1.29. The firm has a 50 day moving average price of $82.84 and a two-hundred day moving average price of $71.17.

Best Buy (NYSE:BBY) last announced its quarterly earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, beating the consensus estimate of $1.39 by $0.08. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The business had revenue of $9.78 billion for the quarter, compared to analyst estimates of $9.59 billion. During the same quarter in the previous year, the firm earned $1.28 EPS. Best Buy’s quarterly revenue was up 3.6% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. On average, research analysts expect that Best Buy Co., Inc. will post 6.6 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Chairman Richard M. Schulze sold 500,350 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $76.12, for a total value of $38,086,642.00. Following the transaction, the chairman directly owned 10,930,586 shares of the company’s stock, valued at $832,036,206.32. The trade was a 4.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Mathew Watson sold 1,784 shares of the 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 sale, the chief accounting officer owned 21,630 shares in the company, valued at approximately $1,596,294. This trade represents a 7.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,002,134 shares of company stock valued at $77,283,527 in the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Best Buy

Hedge funds and other institutional investors have recently made changes to their positions in the business. Torren Management LLC acquired a new position in Best Buy during the 4th quarter worth about $25,000. MV Capital Management Inc. acquired a new stake in Best Buy in the 4th quarter valued at about $25,000. Palisade Asset Management LLC bought a new position in shares of Best Buy in the third quarter worth about $25,000. Hillsdale Investment Management Inc. bought a new position in shares of Best Buy in the fourth quarter worth about $29,000. Finally, Activest Wealth Management lifted its position in shares of Best Buy by 1,247.1% during the fourth quarter. Activest Wealth Management now owns 458 shares of the technology retailer’s stock worth $31,000 after purchasing an additional 424 shares in the last quarter. 80.96% of the stock is currently owned by institutional investors and hedge funds.

About Best Buy

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.