Best Buy (NYSE:BBY) Shares Down 7.6% Following Analyst Downgrade

Shares of Best Buy Co., Inc. (NYSE:BBY) fell 7.6% during mid-day trading on Tuesday after Truist Financial lowered their price target on the stock from $107.00 to $95.00. Truist Financial currently has a hold rating on the stock. Best Buy traded as low as $83.81 and last traded at $85.99. 4,461,743 shares changed hands during trading, an increase of 47% from the average session volume of 3,032,734 shares. The stock had previously closed at $93.03.

Other research analysts have also issued research reports about the stock. BNP Paribas raised shares of Best Buy to a “strong-buy” rating in a research report on Thursday, August 29th. Bank of America upped their price target on Best Buy from $70.00 to $80.00 and gave the company an “underperform” rating in a report on Friday, August 30th. Citigroup decreased their price objective on Best Buy from $109.00 to $101.00 and set a “buy” rating on the stock in a report on Wednesday. Loop Capital cut their target price on Best Buy from $110.00 to $100.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $114.00 target price (up from $100.00) on shares of Best Buy in a research report on Friday, August 30th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $100.82.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Franklin Resources Inc. increased its holdings in Best Buy by 36.5% during the 3rd quarter. Franklin Resources Inc. now owns 753,471 shares of the technology retailer’s stock valued at $73,016,000 after purchasing an additional 201,562 shares in the last quarter. Tidal Investments LLC increased its stake in shares of Best Buy by 24.5% in the third quarter. Tidal Investments LLC now owns 22,210 shares of the technology retailer’s stock valued at $2,294,000 after buying an additional 4,370 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new position in shares of Best Buy in the third quarter valued at about $247,000. World Investment Advisors LLC bought a new position in shares of Best Buy in the third quarter valued at about $5,234,000. Finally, TCW Group Inc. grew its holdings in Best Buy by 156.6% during the 3rd quarter. TCW Group Inc. now owns 316,593 shares of the technology retailer’s stock worth $32,704,000 after acquiring an additional 193,209 shares during the last quarter. Institutional investors own 80.96% of the company’s stock.

Best Buy Trading Down 0.4 %

The stock has a market cap of $18.93 billion, a P/E ratio of 15.20, a price-to-earnings-growth ratio of 2.44 and a beta of 1.47. The company has a current ratio of 1.01, a quick ratio of 0.34 and a debt-to-equity ratio of 0.37. The business’s fifty day simple moving average is $94.16 and its 200 day simple moving average is $89.07.

Best Buy (NYSE:BBY) last released its quarterly earnings results on Thursday, August 29th. The technology retailer reported $1.34 EPS for the quarter, beating the consensus estimate of $1.16 by $0.18. Best Buy had a net margin of 2.96% and a return on equity of 47.19%. The business had revenue of $9.29 billion for the quarter, compared to analysts’ expectations of $9.23 billion. During the same period in the prior year, the firm earned $1.22 earnings per share. Best Buy’s revenue was down 3.1% compared to the same quarter last year. As a group, analysts expect that Best Buy Co., Inc. will post 6.28 EPS for the current year.

Best Buy Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 7th. Stockholders of record on Tuesday, December 17th will be paid a $0.94 dividend. The ex-dividend date is Tuesday, December 17th. This represents a $3.76 annualized dividend and a dividend yield of 4.27%. Best Buy’s dividend payout ratio (DPR) is currently 64.83%.

About Best Buy

Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.