Zacks Investment Research upgraded shares of Best Buy (NYSE:BBY) from a hold rating to a buy rating in a research report sent to investors on Monday morning. They currently have $87.00 target price on the technology retailer’s stock.
According to Zacks, “Best Buy’s extensive investments to upgrade operations with special focus on developing omni-channel capabilities, supply chain and cost reduction opportunities coupled with strengthening partnership with vendors bode well. The company’s “Best Buy 2020: Building the New Blue” program aims to explore growth opportunities and optimize cost. These efforts have helped the stock to outpace the industry in the past six months and continue post upbeat results, as evident from fourth-quarter fiscal 2018 performance. This prompted management to provide encouraging view for fiscal 2019. The company is concentrating on enhancing mobile phone category in its big-box stores as well as online under Mobile 2020 strategy. However, management hinted that higher investments in supply chain and increased transportation costs may hurt margins. International gross margin is also likely to remain under pressure during the first quarter.”
Several other equities analysts have also recently weighed in on the company. Barclays lifted their price target on Best Buy from $80.00 to $85.00 and gave the company an overweight rating in a research report on Tuesday, January 30th. Loop Capital set a $80.00 price target on Best Buy and gave the company a buy rating in a research report on Tuesday, January 16th. ValuEngine upgraded Best Buy from a hold rating to a buy rating in a research report on Friday, February 2nd. Piper Jaffray lifted their price target on Best Buy from $68.00 to $83.00 and gave the company an overweight rating in a research report on Monday, February 26th. Finally, Citigroup reiterated a neutral rating and issued a $74.00 price target (up from $69.00) on shares of Best Buy in a research report on Friday, February 16th. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating, nine have given a buy rating and one has issued a strong buy rating to the stock. Best Buy has an average rating of Hold and an average target price of $71.39.
Shares of BBY opened at $78.25 on Monday. The firm has a market capitalization of $21.93 billion, a price-to-earnings ratio of 17.32, a PEG ratio of 1.08 and a beta of 0.91. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.59 and a current ratio of 1.26. Best Buy has a 1 year low of $77.78 and a 1 year high of $78.76.
Best Buy (NYSE:BBY) last issued its earnings results on Thursday, March 1st. The technology retailer reported $2.42 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.05 by $0.37. The firm had revenue of $15.36 billion for the quarter, compared to analyst estimates of $14.52 billion. Best Buy had a return on equity of 32.68% and a net margin of 2.37%. The business’s revenue was up 14.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.93 earnings per share. research analysts anticipate that Best Buy will post 4.97 earnings per share for the current fiscal year.
In related news, SVP Mathew Watson sold 990 shares of the business’s stock in a transaction dated Tuesday, March 6th. The stock was sold at an average price of $77.21, for a total transaction of $76,437.90. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Patricia H. Walker sold 1,569 shares of the business’s stock in a transaction dated Monday, March 19th. The stock was sold at an average price of $68.72, for a total value of $107,821.68. Following the transaction, the insider now owns 35,552 shares of the company’s stock, valued at $2,443,133.44. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 365,639 shares of company stock valued at $25,651,834. 0.75% of the stock is owned by company insiders.
A number of institutional investors have recently bought and sold shares of BBY. OppenheimerFunds Inc. grew its position in Best Buy by 448.0% during the first quarter. OppenheimerFunds Inc. now owns 2,893,720 shares of the technology retailer’s stock worth $202,532,000 after buying an additional 2,365,675 shares in the last quarter. Renaissance Technologies LLC grew its position in Best Buy by 61.0% during the fourth quarter. Renaissance Technologies LLC now owns 3,379,200 shares of the technology retailer’s stock worth $231,374,000 after buying an additional 1,280,600 shares in the last quarter. Amundi Pioneer Asset Management Inc. purchased a new position in Best Buy during the fourth quarter worth about $86,840,000. Bank of New York Mellon Corp grew its position in Best Buy by 31.5% during the fourth quarter. Bank of New York Mellon Corp now owns 5,279,548 shares of the technology retailer’s stock worth $361,491,000 after buying an additional 1,264,528 shares in the last quarter. Finally, Capital Growth Management LP purchased a new position in Best Buy during the fourth quarter worth about $50,668,000. Institutional investors and hedge funds own 87.33% of the company’s stock.
About Best Buy
Best Buy Co, Inc operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide consumer electronics, including digital imaging, health and fitness, home automation, home theater, and portable audio products; computing and mobile phones, such as computing and peripherals, networking products, tablets, smart watches, and e-readers, as well as mobile phones comprising related mobile network carrier commissions; and entertainment products, including drones, movies, music, and technology toys, as well as gaming hardware and software, and virtual reality and other software products.
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