Wellington Management Group LLP Reduces Stake in Best Buy Co., Inc.

Wellington Management Group LLP has significantly reduced its investment in Best Buy Co., Inc. (NYSE:BBY), according to recent reports. During the third quarter, Wellington trimmed its position by an impressive 96.8%. After this reduction, the institutional investor now holds only 2,329 shares of the technology retail giant, having sold off 69,457 shares during the quarter. As per their latest filing with the Securities and Exchange Commission (SEC), Wellington's holdings in Best Buy are valued at approximately $241,000.

Several other institutional investors have also made notable adjustments to their positions in Best Buy. Thrivent Financial for Lutherans increased its stake by an astounding 4,337.6% in the second quarter. It now owns 1,099,495 shares, worth about $92,677,000, after buying an additional 1,074,718 shares. Similarly, Bank of New York Mellon Corp raised its holdings by 55.7%, owning 2,863,291 shares valued at $241,347,000 after acquiring an additional 1,024,824 shares. AQR Capital Management LLC also boosted its stake in Best Buy by 55.4%, owning 1,379,195 shares valued at $116,252,000. The Healthcare of Ontario Pension Plan Trust Fund entered the picture by acquiring a new stake valued at approximately $25,287,000 during the second quarter. Moreover, Andra AP fonden increased its holdings by an impressive 356.5%, owning 331,900 shares worth $27,976,000 after purchasing 259,187 additional shares. Currently, institutional investors own 80.96% of Best Buy's stock.

Brokerage Recommendations for Best Buy

In terms of market analysis, various brokerages have adjusted their price targets for Best Buy recently. Citigroup lowered its target price from $109.00 to $101.00, maintaining a "buy" rating for the stock. On the contrary, BNP Paribas upgraded Best Buy to a "strong-buy" rating earlier in August. UBS Group also revised its price target downward from $123.00 to $115.00 while keeping its "buy" rating. Wells Fargo & Company reduced its price objective from $95.00 to $89.00, reflecting an "equal weight" rating on the stock. Finally, Evercore ISI increased its target from $90.00 to $94.00, providing an "in-line" rating. Overall, one investment analyst has tagged Best Buy with a sell rating, while eight have given it a hold rating, and ten have assigned a buy rating, with one analyst providing a strong buy rating. Best Buy currently holds an average rating of "Moderate Buy" and an average target price of $101.06 according to MarketBeat.com.

Insider Transactions

In related news, Chief Financial Officer Matthew M. Bilunas recently sold 69,166 shares of Best Buy on December 11, fetching an average price of $87.46, totaling approximately $6,049,258.36. Post-transaction, Bilunas retains direct ownership of 92,070 shares valued at around $8,052,442.20, representing a 42.90% decrease in personal shareholding. This transaction has been disclosed in legal filings made available through the SEC website, with company insiders currently holding 0.59% of the stock.

Best Buy Stock Performance

Best Buy's stock opened at $85.55 recently, experiencing a 0.4% uptick. The company has a quick ratio of 0.22, a current ratio of 1.00, and a debt-to-equity ratio of 0.37. Its market capitalization stands at $18.29 billion, with a price-to-earnings (P/E) ratio of 14.62 and a P/E-to-growth (P/E/G) ratio of 2.19. Best Buy's stock has seen a twelve-month low of $69.29 and a high of $103.71. The stock's fifty-day simple moving average is $90.40, and its 200-day average is $90.53.

Recent Earnings Report

Best Buy recently reported its quarterly earnings on November 26. The company reported earnings per share (EPS) of $1.26, falling short of analysts' expectations of $1.30 by $0.04. The company generated a net margin of 3.01% with a return on equity of 45.93%, and revenue during this quarter totaled $9.45 billion, compared to analyst estimates of $9.63 billion. This represents a 3.2% decline from the same period last year when the company earned $1.29 EPS. Analysts collectively forecast Best Buy Co., Inc. will report an EPS of 6.18 for the current fiscal year.

Best Buy Dividend Information

The company has announced a quarterly dividend payout scheduled for January 7, 2025. Stockholders on record as of December 17 will receive a dividend of $0.94. The ex-dividend date was also December 17. This amount translates to an annual dividend of $3.76, yielding about 4.40%. Best Buy's dividend payout ratio currently rests at 64.27%.

Company Overview

Best Buy Co., Inc. specializes in retailing technology products across the United States and Canada, as well as internationally. Its stores offer a wide range of computing and mobile phone products, including desktops, laptops, mobile phones, and related accessories. Moreover, Best Buy provides products in consumer electronics, including smart home devices, health and fitness products, and home theater systems.

Wellington, BestBuy, Investment