Best Buy (NYSE:BBY) Stock Gains 6% Following Analyst Rating Upgrade

On November 27th, 2024, shares of Best Buy Co., Inc. (NYSE:BBY) rose by 6% during mid-day trading after JPMorgan Chase & Co. increased their price target from $111.00 to $117.00. The bank currently rates Best Buy as overweight, suggesting a positive outlook for the stock. During this trading session, Best Buy's stock reached a high of $94.96 before closing at $94.88, compared to a previous closing price of $89.54. Approximately 1,930,310 shares were traded, marking a decline of 36% from the average volume of 2,998,745 shares.

Several other equity research firms have also weighed in on Best Buy's stock. DA Davidson reaffirmed a "buy" rating on October 15th, setting a price target of $117.00. Meanwhile, Evercore ISI updated its price target from $90.00 to $94.00 on August 30th, rating the stock as "in-line." The Goldman Sachs Group increased its target from $95.00 to $116.00, issuing a "buy" rating on September 3rd. StockNews.com downgraded Best Buy from a "buy" to a "hold" on November 15th, while Wells Fargo & Company raised their target from $80.00 to $95.00 with an "equal weight" rating on the same day as Evercore. Currently, there is one analyst with a sell rating, eight with hold ratings, nine with buy ratings, and one with a strong buy rating. The consensus rating is a "Moderate Buy" with an average target price of $103.41 based on MarketBeat.com data.

Institutional Investors' Activity

Recent activity from institutional investors reflects growing interest in Best Buy. Tidal Investments LLC increased its holdings by 24.5% in the third quarter, now owning 22,210 shares worth approximately $2.29 million after acquiring an additional 4,370 shares. Wilmington Savings Fund Society FSB acquired a new stake valued at about $247,000. World Investment Advisors LLC purchased shares worth approximately $5.23 million, while TCW Group Inc. significantly increased its stake by 156.6%, now holding 316,593 shares, valued at $32.70 million. Toronto Dominion Bank also raised its holdings by 82.2%, owning 102,292 shares worth $10.57 million. Overall, institutional investors control 80.96% of Best Buy’s stock, indicating strong institutional confidence in the company.

Best Buy's Recent Financial Performance

Best Buy has faced challenges despite its stock performance. On August 29th, the company released its quarterly earnings report, revealing an earnings per share (EPS) of $1.34, exceeding analysts' expectations of $1.16. Quarterly revenue reached $9.29 billion, slightly surpassing the forecast of $9.23 billion. However, the company's net margin stood at 2.96%, and it reported a year-over-year revenue decline of 3.1%, with last year's EPS at $1.22. Analysts predict that Best Buy will achieve an EPS of 6.28 for the current fiscal year.

Dividend Announcement

In addition to its earnings report, Best Buy declared a quarterly dividend of $0.94, which was paid on October 10th. This dividend represents an annualized payout of $3.76, yielding approximately 4.25%. The company’s current payout ratio is 64.83%. This reflects Best Buy's commitment to returning value to its shareholders.

About Best Buy

Best Buy Co., Inc. is a leading retailer of technology products, operating in the United States, Canada, and internationally. The company offers a range of products, including computers, mobile phones, tablets, and various consumer electronics. Best Buy focuses on providing customers with the latest technology and best services.

BestBuy, Stocks, Earnings