Zacks Investment Research upgraded shares of Best Buy (NYSE:BBY) from a hold rating to a strong-buy rating in a research note published on Friday. The firm currently has $84.00 price target 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 and strengthening partnership with vendors bode well. Moreover, following the completion of “Renew Blue” program, it launched a fresh strategy called “Best Buy 2020: Building the New Blue” aimed to explore growth opportunities and optimize cost. These efforts have helped the stock to outpace the industry in a year and continue register top and bottom-line growth in spite of prevailing headwinds. Certainly, tough retail landscape, aggressive promotional strategies and waning store traffic remain matters of concern. Further, analysts believe that higher investments may strain margins to an extent. Moreover, the company’s lower-than-expected third-quarter results due to lack of new mobile launches also add to woes but that did not deter management to provide an upbeat outlook for fiscal 2018.”
A number of other research firms have also recently commented on BBY. Telsey Advisory Group cut Best Buy from an outperform rating to a market perform rating and upped their price target for the stock from $62.00 to $81.00 in a research note on Thursday, January 25th. They noted that the move was a valuation call. Barclays restated a buy rating and set a $85.00 price target (up from $80.00) on shares of Best Buy in a research note on Tuesday, January 30th. Loop Capital set a $80.00 price target on Best Buy and gave the stock a buy rating in a research note on Tuesday, January 16th. ValuEngine upgraded Best Buy from a hold rating to a buy rating in a research note on Friday. Finally, Wedbush set a $38.00 price target on Best Buy and gave the stock a sell rating in a research note on Monday, January 8th. Four investment analysts have rated the stock with a sell rating, six have given a hold rating, eleven have assigned a buy rating and two have given a strong buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus target price of $62.97.
Best Buy (NYSE:BBY) last released its quarterly earnings results on Thursday, November 16th. The technology retailer reported $0.78 EPS for the quarter, hitting analysts’ consensus estimates of $0.78. Best Buy had a return on equity of 28.46% and a net margin of 3.09%. The company had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.36 billion. During the same period in the prior year, the firm earned $0.60 earnings per share. The firm’s revenue was up 4.2% compared to the same quarter last year. sell-side analysts predict that Best Buy will post 4.04 EPS for the current fiscal year.
In other news, General Counsel Keith J. Nelsen sold 44,235 shares of the stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $56.78, for a total value of $2,511,663.30. Following the sale, the general counsel now directly owns 107,503 shares in the company, valued at $6,104,020.34. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Shari L. Ballard sold 40,018 shares of the stock in a transaction on Tuesday, November 21st. The shares were sold at an average price of $56.18, for a total value of $2,248,211.24. Following the completion of the sale, the insider now owns 99,304 shares in the company, valued at $5,578,898.72. The disclosure for this sale can be found here. Over the last quarter, insiders sold 3,134,253 shares of company stock worth $191,063,125. Insiders own 0.84% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in BBY. Nordea Investment Management AB raised its stake in Best Buy by 0.3% in the second quarter. Nordea Investment Management AB now owns 15,000 shares of the technology retailer’s stock valued at $860,000 after buying an additional 48 shares in the last quarter. Advisor Group Inc. raised its stake in Best Buy by 1.2% in the second quarter. Advisor Group Inc. now owns 4,636 shares of the technology retailer’s stock valued at $265,000 after buying an additional 55 shares in the last quarter. Thrivent Financial For Lutherans raised its stake in Best Buy by 1.7% in the second quarter. Thrivent Financial For Lutherans now owns 10,055 shares of the technology retailer’s stock valued at $576,000 after buying an additional 170 shares in the last quarter. Contravisory Investment Management Inc. raised its stake in Best Buy by 15.2% in the fourth quarter. Contravisory Investment Management Inc. now owns 5,216 shares of the technology retailer’s stock valued at $357,000 after buying an additional 689 shares in the last quarter. Finally, Community Bank & Trust Waco Texas raised its stake in Best Buy by 5.5% in the fourth quarter. Community Bank & Trust Waco Texas now owns 15,205 shares of the technology retailer’s stock valued at $1,041,000 after buying an additional 789 shares in the last quarter. Institutional investors and hedge funds own 88.70% of the company’s stock.
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About Best Buy
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.
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