Best Buy (NYSE:BBY) Shares Down 7.6% – Here’s Why

Best Buy Co., Inc. (NYSE:BBY) shares dropped 7.6% during mid-day trading on Tuesday . The stock traded as low as $83.81 and last traded at $85.99. Approximately 4,461,743 shares traded hands during trading, an increase of 47% from the average daily volume of 3,032,734 shares. The stock had previously closed at $93.03.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. The Goldman Sachs Group raised their target price on shares of Best Buy from $95.00 to $116.00 and gave the company a “buy” rating in a research note on Tuesday, September 3rd. Bank of America raised their price objective on Best Buy from $70.00 to $80.00 and gave the company an “underperform” rating in a research report on Friday, August 30th. Wedbush upped their target price on Best Buy from $85.00 to $95.00 and gave the stock a “neutral” rating in a research report on Friday, August 30th. Wells Fargo & Company boosted their price objective on shares of Best Buy from $80.00 to $95.00 and gave the stock an “equal weight” rating in a report on Friday, August 30th. Finally, DA Davidson reiterated a “buy” rating and set a $117.00 price objective on shares of Best Buy in a research note on Tuesday, October 15th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $103.71.

Best Buy Stock Performance

The company has a fifty day moving average price of $94.60 and a two-hundred day moving average price of $88.97. The firm has a market cap of $18.82 billion, a price-to-earnings ratio of 14.83, a price-to-earnings-growth ratio of 2.34 and a beta of 1.47. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.01 and a quick ratio of 0.34.

Best Buy (NYSE:BBY) last announced its quarterly earnings data on Thursday, August 29th. The technology retailer reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.18. The company had revenue of $9.29 billion for the quarter, compared to analysts’ expectations of $9.23 billion. Best Buy had a net margin of 2.96% and a return on equity of 47.19%. The business’s revenue was down 3.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.22 EPS. As a group, equities research analysts expect that Best Buy Co., Inc. will post 6.28 EPS for the current year.

Best Buy Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 10th. Investors of record on Thursday, September 19th were given a $0.94 dividend. The ex-dividend date of this dividend was Thursday, September 19th. This represents a $3.76 dividend on an annualized basis and a dividend yield of 4.29%. Best Buy’s dividend payout ratio (DPR) is 64.83%.

Institutional Trading of Best Buy

A number of hedge funds have recently bought and sold shares of BBY. Richardson Financial Services Inc. raised its holdings in shares of Best Buy by 190.9% during the second quarter. Richardson Financial Services Inc. now owns 320 shares of the technology retailer’s stock valued at $27,000 after acquiring an additional 210 shares during the period. Innealta Capital LLC acquired a new stake in shares of Best Buy in the second quarter worth $35,000. Harbor Capital Advisors Inc. purchased a new position in shares of Best Buy during the third quarter valued at $40,000. LRI Investments LLC raised its position in Best Buy by 632.1% during the third quarter. LRI Investments LLC now owns 388 shares of the technology retailer’s stock valued at $40,000 after buying an additional 335 shares during the period. Finally, Whittier Trust Co. lifted its stake in Best Buy by 53.3% in the 2nd quarter. Whittier Trust Co. now owns 492 shares of the technology retailer’s stock worth $41,000 after acquiring an additional 171 shares in the last quarter. 80.96% of the stock is owned by hedge funds and other institutional investors.

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.