Best Buy (NYSE:BBY) Upgraded to “Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Best Buy (NYSE:BBY) from a hold rating to a buy rating in a report released on Saturday morning.

BBY has been the subject of several other research reports. Morgan Stanley raised their price objective on shares of Best Buy from $80.00 to $90.00 and gave the company an “equal weight” rating in a research report on Friday. Truist Financial set a $100.00 target price on shares of Best Buy in a research report on Thursday. Weiss Ratings raised shares of Best Buy from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 29th. Barclays raised their price target on shares of Best Buy from $77.00 to $85.00 and gave the company a “buy” rating in a report on Friday. Finally, KeyCorp restated a “sector weight” rating on shares of Best Buy in a research report on Monday, June 22nd. Seven analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $85.40.

Best Buy Price Performance

Shares of BBY stock opened at $82.34 on Friday. The stock’s fifty day moving average is $83.16 and its 200-day moving average is $71.34. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.40 and a current ratio of 1.12. The stock has a market capitalization of $17.35 billion, a PE ratio of 13.70, a PEG ratio of 2.33 and a beta of 1.29. Best Buy has a 52 week low of $55.10 and a 52 week high of $91.26.

Best Buy (NYSE:BBY) last announced its earnings results on Thursday, August 27th. The technology retailer reported $1.47 earnings per share for the quarter, beating analysts’ consensus estimates of $1.39 by $0.08. Best Buy had a return on equity of 48.14% and a net margin of 3.01%.The company had revenue of $9.78 billion during the quarter, compared to analyst estimates of $9.59 billion. During the same period last year, the company posted $1.28 earnings per share. The firm’s quarterly revenue was up 3.6% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Equities research analysts expect that Best Buy will post 6.79 EPS for the current fiscal year.

Best Buy Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be given a dividend of $0.96 per share. The ex-dividend date is Thursday, September 17th. This represents a $3.84 dividend on an annualized basis and a yield of 4.7%. Best Buy’s dividend payout ratio is presently 71.11%.

Insider Transactions at Best Buy

In other news, Chairman Richard M. Schulze sold 224,705 shares of the firm’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $78.10, for a total value of $17,549,460.50. Following the transaction, the chairman owned 10,430,936 shares of the company’s stock, valued at approximately $814,656,101.60. This trade represents a 2.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders have sold 500,000 shares of company stock worth $39,065,226. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Best Buy

Several large investors have recently bought and sold shares of BBY. Tema ETFs LLC increased its position in shares of Best Buy by 6.5% during the second quarter. Tema ETFs LLC now owns 2,365 shares of the technology retailer’s stock worth $179,000 after acquiring an additional 145 shares in the last quarter. Krane Funds Advisors LLC lifted its position in Best Buy by 3.0% in the 4th quarter. Krane Funds Advisors LLC now owns 5,163 shares of the technology retailer’s stock valued at $346,000 after acquiring an additional 151 shares in the last quarter. B. Metzler seel. Sohn & Co. AG lifted its position in Best Buy by 1.0% in the 2nd quarter. B. Metzler seel. Sohn & Co. AG now owns 14,613 shares of the technology retailer’s stock valued at $1,109,000 after acquiring an additional 151 shares in the last quarter. Applied Finance Capital Management LLC boosted its stake in Best Buy by 3.8% in the 4th quarter. Applied Finance Capital Management LLC now owns 4,270 shares of the technology retailer’s stock worth $286,000 after purchasing an additional 157 shares during the period. Finally, UMB Bank n.a. boosted its stake in Best Buy by 6.2% in the 4th quarter. UMB Bank n.a. now owns 3,158 shares of the technology retailer’s stock worth $211,000 after purchasing an additional 185 shares during the period. 80.96% of the stock is currently owned by institutional investors and hedge funds.

More Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Quarterly results exceeded expectations. Best Buy reported Q2 FY27 revenue of $9.78 billion, up 3.6% year over year and above the $9.59 billion consensus estimate. Adjusted earnings of $1.47 per share also topped the $1.39 consensus, while comparable sales rose 4.1%. Best Buy Reports Second Quarter Results
• Positive Sentiment: Best Buy raised its full-year outlook. The company now expects adjusted fiscal 2027 earnings of $6.70 to $6.90 per share, up from $6.30 to $6.60 previously, and revenue of $42.3 billion to $42.8 billion. The improved forecast reflects strength in computing and steady demand for technology upgrades and replacements. Best Buy raises annual sales forecast on steady electronics demand
• Positive Sentiment: Analyst sentiment improved. Guggenheim and DA Davidson each raised their BBY price target from $90 to $95 and assigned a “buy” rating, implying roughly 15% upside from the referenced price.
• Positive Sentiment: Shareholder returns remain attractive. Best Buy declared a quarterly dividend of $0.96 per share, equivalent to an annualized yield of approximately 4.7% at the referenced price.
• Neutral Sentiment: Growth initiatives could support the longer-term retail recovery. Best Buy is expanding its omnichannel strategy, including the Ask Blue conversational AI assistant and smaller-format stores, while digital-led sales growth was highlighted during the earnings call. Best Buy Expands Omnichannel Footprint With OpenAI Integration and Smaller-Format Stores
• Negative Sentiment: The negative market reaction likely reflects high expectations and lingering risks. Although results beat estimates, the outlook increase was relatively modest versus consensus, international revenue declined, and investors remain cautious about discretionary spending. Analysts are also described as conflicted on BBY, suggesting uncertainty about how durable the recovery will be. Analysts Conflicted on These Consumer Cyclical Names

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.