Best Buy (NYSE:BBY) Shares Gap Up on Strong Earnings

Best Buy Co., Inc. (NYSE:BBY)’s stock price gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $74.07, but opened at $75.92. Best Buy shares last traded at $77.94, with a volume of 1,446,498 shares trading hands.

The technology retailer reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.16. Best Buy had a net margin of 2.93% and a return on equity of 51.95%. The firm had revenue of $9.58 billion for the quarter, compared to the consensus estimate of $9.52 billion. During the same period in the previous year, the firm posted $1.54 EPS. The business’s quarterly revenue was down 7.2% on a year-over-year basis.

Best Buy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 10th. Investors of record on Tuesday, September 19th will be paid a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 4.78%. Best Buy’s dividend payout ratio is presently 62.27%.

Analysts Set New Price Targets

A number of research firms recently commented on BBY. Wells Fargo & Company dropped their price target on shares of Best Buy from $80.00 to $75.00 and set a “buy” rating for the company in a research note on Friday, May 26th. Telsey Advisory Group reaffirmed a “market perform” rating and set a $78.00 price target on shares of Best Buy in a research note on Monday, August 21st. Truist Financial dropped their price target on shares of Best Buy from $88.00 to $77.00 and set a “buy” rating for the company in a research note on Friday, May 26th. Wedbush dropped their price target on shares of Best Buy from $85.00 to $72.00 and set a “buy” rating for the company in a research note on Thursday, May 18th. Finally, 58.com reissued a “maintains” rating on shares of Best Buy in a research report on Thursday, May 11th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat, Best Buy presently has an average rating of “Moderate Buy” and an average target price of $78.43.

Insider Buying and Selling

In related news, insider Jason J. Bonfig sold 1,136 shares of the business’s stock in a transaction that occurred on Thursday, June 1st. The shares were sold at an average price of $71.82, for a total transaction of $81,587.52. Following the completion of the transaction, the insider now owns 47,534 shares in the company, valued at approximately $3,413,891.88. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In other news, CAO Mathew Watson sold 578 shares of the company’s stock in a transaction on Thursday, June 1st. The shares were sold at an average price of $71.82, for a total value of $41,511.96. Following the sale, the chief accounting officer now directly owns 22,974 shares of the company’s stock, valued at approximately $1,649,992.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Jason J. Bonfig sold 1,136 shares of the company’s stock in a transaction on Thursday, June 1st. The shares were sold at an average price of $71.82, for a total transaction of $81,587.52. Following the completion of the sale, the insider now directly owns 47,534 shares in the company, valued at $3,413,891.88. The disclosure for this sale can be found here. Insiders sold a total of 408,034 shares of company stock worth $33,741,133 in the last 90 days. 0.56% of the stock is owned by corporate insiders.

Institutional Trading of Best Buy

A number of hedge funds have recently added to or reduced their stakes in the company. Global Retirement Partners LLC raised its position in Best Buy by 13.1% in the second quarter. Global Retirement Partners LLC now owns 1,116 shares of the technology retailer’s stock worth $91,000 after acquiring an additional 129 shares in the last quarter. Covenant Asset Management LLC raised its position in Best Buy by 1.9% in the second quarter. Covenant Asset Management LLC now owns 7,145 shares of the technology retailer’s stock worth $586,000 after acquiring an additional 131 shares in the last quarter. NorthCrest Asset Manangement LLC raised its position in Best Buy by 1.4% in the second quarter. NorthCrest Asset Manangement LLC now owns 9,383 shares of the technology retailer’s stock worth $769,000 after acquiring an additional 133 shares in the last quarter. Covestor Ltd grew its holdings in Best Buy by 46.8% in the second quarter. Covestor Ltd now owns 442 shares of the technology retailer’s stock valued at $36,000 after purchasing an additional 141 shares during the last quarter. Finally, Tredje AP fonden grew its holdings in Best Buy by 0.4% in the fourth quarter. Tredje AP fonden now owns 40,967 shares of the technology retailer’s stock valued at $3,286,000 after purchasing an additional 151 shares during the last quarter. 76.10% of the stock is owned by hedge funds and other institutional investors.

Best Buy Price Performance

The company has a quick ratio of 0.32, a current ratio of 0.98 and a debt-to-equity ratio of 0.41. The company has a market cap of $16.79 billion, a price-to-earnings ratio of 13.02, a price-to-earnings-growth ratio of 1.97 and a beta of 1.53. The company has a fifty day simple moving average of $80.37 and a two-hundred day simple moving average of $77.76.

Best Buy Company Profile

Best Buy Co, Inc engages in the retail of technology products in the United States and Canada. The company operates in two segments, Domestic 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, home theater, portable audio comprising headphones and portable speakers, and smart home products.