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

Best Buy Co., Inc. (NYSE:BBY)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $93.03, but opened at $86.56. Best Buy shares last traded at $85.61, with a volume of 1,927,809 shares.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. Telsey Advisory Group boosted their target price on shares of Best Buy from $95.00 to $115.00 and gave the company an “outperform” rating in a research report on Friday, August 30th. Melius Research initiated coverage on shares of Best Buy in a report on Monday, September 23rd. They issued a “hold” rating and a $100.00 price objective for the company. Citigroup cut their price objective on shares of Best Buy from $115.00 to $109.00 and set a “buy” rating for the company in a report on Friday, November 8th. Wedbush lifted their price objective on shares of Best Buy from $85.00 to $95.00 and gave the company a “neutral” rating in a report on Friday, August 30th. Finally, Wells Fargo & Company boosted their target price on shares of Best Buy from $80.00 to $95.00 and gave the stock an “equal weight” rating in a research note on Friday, August 30th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Best Buy presently has a consensus rating of “Moderate Buy” and an average target price of $103.71.

Best Buy Price Performance

The company has a market cap of $18.42 billion, a price-to-earnings ratio of 14.83, a PEG ratio of 2.34 and a beta of 1.47. The company has a current ratio of 1.01, a quick ratio of 0.34 and a debt-to-equity ratio of 0.37. The company’s 50 day moving average price is $94.60 and its 200 day moving average price is $88.97.

Best Buy (NYSE:BBY) last announced its quarterly earnings results on Thursday, August 29th. The technology retailer reported $1.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.16 by $0.18. The business had revenue of $9.29 billion during the quarter, compared to the consensus estimate 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 last year, the firm posted $1.22 EPS. Equities research analysts forecast that Best Buy Co., Inc. will post 6.28 earnings per share for the current year.

Best Buy Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 10th. Stockholders of record on Thursday, September 19th were issued a $0.94 dividend. The ex-dividend date was Thursday, September 19th. This represents a $3.76 dividend on an annualized basis and a dividend yield of 4.38%. Best Buy’s dividend payout ratio is presently 64.83%.

Hedge Funds Weigh In On Best Buy

Several hedge funds have recently added to or reduced their stakes in the business. Park Avenue Securities LLC increased its holdings in Best Buy by 1.3% during the 3rd quarter. Park Avenue Securities LLC now owns 8,281 shares of the technology retailer’s stock valued at $855,000 after acquiring an additional 103 shares in the last quarter. Greenleaf Trust raised its position in shares of Best Buy by 1.2% in the third quarter. Greenleaf Trust now owns 9,454 shares of the technology retailer’s stock valued at $977,000 after buying an additional 108 shares during the last quarter. SeaCrest Wealth Management LLC raised its position in shares of Best Buy by 4.6% in the third quarter. SeaCrest Wealth Management LLC now owns 2,675 shares of the technology retailer’s stock valued at $276,000 after buying an additional 118 shares during the last quarter. Tobam raised its position in shares of Best Buy by 15.6% in the second quarter. Tobam now owns 895 shares of the technology retailer’s stock valued at $75,000 after buying an additional 121 shares during the last quarter. Finally, Hoxton Planning & Management LLC raised its position in shares of Best Buy by 3.7% in the third quarter. Hoxton Planning & Management LLC now owns 3,481 shares of the technology retailer’s stock valued at $360,000 after buying an additional 124 shares during the last quarter. 80.96% of the stock is currently owned by hedge funds and other institutional investors.

About Best Buy

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.