Best Buy (NYSE:BBY) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Wednesday.
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 a year and continue post upbeat results, as evident from fourth-quarter fiscal 2018 performance. This prompted management to provide encouraging outlook for fiscal 2019. The company is also concentrating on enhancing mobile phone category in its big-box stores as well as online under its Mobile 2020 strategy. However, management hinted that higher investments in supply chain and increased transportation costs may weigh upon margins. International gross margin is also likely to remain under pressure during the first quarter.”
Several other research analysts have also recently commented on the stock. Wedbush set a $38.00 target price on shares of Best Buy and gave the stock a “sell” rating in a research report on Monday, January 8th. Moffett Nathanson assumed coverage on shares of Best Buy in a report on Monday, December 4th. They issued a “sell” rating for the company. Barclays increased their price objective on shares of Best Buy from $80.00 to $85.00 and gave the company an “overweight” rating in a report on Tuesday, January 30th. Loop Capital set a $72.00 price objective on shares of Best Buy and gave the company a “buy” rating in a report on Thursday, November 16th. Finally, Deutsche Bank reiterated a “buy” rating on shares of Best Buy in a report on Thursday, November 16th. Four analysts have rated the stock with a sell rating, ten have given a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $69.25.
Best Buy (NYSE:BBY) last posted its earnings results on Thursday, March 1st. The technology retailer reported $2.42 EPS for the quarter, topping the consensus estimate of $2.05 by $0.37. Best Buy had a net margin of 2.37% and a return on equity of 32.68%. The firm had revenue of $15.36 billion during the quarter, compared to analysts’ expectations of $14.52 billion. During the same quarter in the prior year, the firm earned $1.93 EPS. Best Buy’s quarterly revenue was up 14.0% on a year-over-year basis. equities research analysts anticipate that Best Buy will post 4.97 earnings per share for the current year.
In related news, major shareholder Richard M. Schulze sold 75,000 shares of the firm’s stock in a transaction that occurred on Friday, December 15th. The shares were sold at an average price of $65.19, for a total transaction of $4,889,250.00. Following the completion of the sale, the insider now directly owns 1,732,500 shares in the company, valued at $112,941,675. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Mathew Watson sold 990 shares of the firm’s stock in a transaction that occurred on Tuesday, March 6th. The stock was sold at an average price of $77.21, for a total transaction of $76,437.90. The disclosure for this sale can be found here. Insiders have sold 349,674 shares of company stock valued at $23,428,646 over the last 90 days. 0.84% of the stock is currently owned by insiders.
Large investors have recently modified their holdings of the stock. SWS Partners bought a new stake in Best Buy during the fourth quarter worth approximately $110,000. Mitsubishi UFJ Securities Holdings Co. Ltd. boosted its holdings in Best Buy by 232.8% during the fourth quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 2,030 shares of the technology retailer’s stock worth $139,000 after buying an additional 1,420 shares in the last quarter. Fieldpoint Private Securities LLC bought a new stake in Best Buy during the third quarter worth approximately $139,000. Squar Milner Financial Services LLC bought a new stake in Best Buy during the fourth quarter worth approximately $201,000. Finally, Harbour Capital Advisors LLC purchased a new stake in shares of Best Buy in the 4th quarter valued at approximately $205,000. Hedge funds and other institutional investors own 85.73% of the company’s stock.
Best Buy Company Profile
Best Buy Co, Inc is a provider of technology products, services and solutions. The Company offers products and services to the customers visiting its stores, engaging with Geek Squad agents, or using its Websites or mobile applications. It has operations in the United States, Canada and Mexico. The Company operates through two segments: Domestic and International.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Best Buy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Best Buy and related companies with MarketBeat.com's FREE daily email newsletter.