Best Buy (NYSE:BBY) Shares Gap Up Following Earnings Beat

Best Buy Co., Inc. (NYSE:BBYGet Free Report)’s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $71.90, but opened at $77.95. Best Buy shares last traded at $80.75, with a volume of 3,091,786 shares.

The technology retailer reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.08 by $0.12. The company had revenue of $8.85 billion for the quarter, compared to analysts’ expectations of $8.96 billion. Best Buy had a return on equity of 48.45% and a net margin of 2.86%. The firm’s revenue was down 6.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.15 earnings per share.

Best Buy Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 11th. Shareholders of record on Thursday, June 20th will be issued a $0.94 dividend. This represents a $3.76 annualized dividend and a dividend yield of 4.80%. Best Buy’s dividend payout ratio is currently 66.08%.

Analysts Set New Price Targets

BBY has been the topic of several research analyst reports. JPMorgan Chase & Co. upgraded shares of Best Buy from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $89.00 to $101.00 in a research report on Friday, March 22nd. Truist Financial lifted their price objective on shares of Best Buy from $68.00 to $87.00 and gave the stock a “hold” rating in a research report on Friday, March 1st. UBS Group lifted their price objective on shares of Best Buy from $82.00 to $85.00 and gave the stock a “neutral” rating in a research report on Friday, March 1st. Citigroup lowered their price target on shares of Best Buy from $76.00 to $67.00 and set a “sell” rating on the stock in a report on Tuesday, May 7th. Finally, The Goldman Sachs Group boosted their price target on shares of Best Buy from $81.00 to $90.00 and gave the company a “buy” rating in a report on Friday, March 1st. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and five have given a buy rating to the stock. According to MarketBeat, Best Buy presently has a consensus rating of “Hold” and an average price target of $84.64.

Read Our Latest Research Report on BBY

Insider Activity at Best Buy

In related news, CEO Corie S. Barry sold 28,042 shares of the firm’s stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $81.80, for a total value of $2,293,835.60. Following the completion of the sale, the chief executive officer now owns 429,159 shares of the company’s stock, valued at $35,105,206.20. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. In other Best Buy news, CFO Matthew M. Bilunas sold 8,258 shares of the firm’s stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $81.80, for a total value of $675,504.40. Following the transaction, the chief financial officer now directly owns 90,694 shares of the company’s stock, valued at $7,418,769.20. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Corie S. Barry sold 28,042 shares of the firm’s stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $81.80, for a total transaction of $2,293,835.60. Following the completion of the transaction, the chief executive officer now directly owns 429,159 shares in the company, valued at $35,105,206.20. The disclosure for this sale can be found here. Insiders sold a total of 52,023 shares of company stock valued at $4,253,900 over the last quarter. Corporate insiders own 0.59% of the company’s stock.

Hedge Funds Weigh In On Best Buy

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Cary Street Partners Investment Advisory LLC boosted its position in shares of Best Buy by 549.1% during the third quarter. Cary Street Partners Investment Advisory LLC now owns 357 shares of the technology retailer’s stock worth $25,000 after purchasing an additional 302 shares in the last quarter. Bfsg LLC bought a new position in shares of Best Buy during the fourth quarter worth $25,000. Rise Advisors LLC lifted its position in Best Buy by 69.5% in the 1st quarter. Rise Advisors LLC now owns 322 shares of the technology retailer’s stock valued at $26,000 after acquiring an additional 132 shares in the last quarter. Naples Money Management LLC bought a new stake in Best Buy in the 4th quarter valued at $27,000. Finally, Access Investment Management LLC bought a new stake in Best Buy in the 4th quarter valued at $27,000. 80.96% of the stock is owned by institutional investors.

Best Buy Stock Up 8.9 %

The firm has a market capitalization of $16.94 billion, a P/E ratio of 14.19, a PEG ratio of 2.17 and a beta of 1.50. The firm’s 50-day moving average is $76.08 and its 200 day moving average is $75.06. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.37 and a current ratio of 1.00.

Best Buy Company Profile

(Get Free Report)

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.

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