Best Buy Co. (BBY) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Best Buy Co. (NYSE:BBY) from a hold rating to a buy rating in a report released on Tuesday morning. Zacks Investment Research currently has $43.00 target price on the technology retailer’s stock.
According to Zacks, “Best Buy continues with its positive earnings surprise streak for the 15th quarter in row, when it reported second-quarter fiscal 2017 results, wherein earnings increased 16.3% year-over-year. We observed that online comparable sales surged 23.7% driven by improved traffic and conversion rates. The company is making extensive investments to upgrade its operations with special focus on developing omni-channel capacities and strengthening partnership with vendors. For the third quarter management expects Enterprise revenues between $8.8 billion and $8.9 billion, reflecting a flat to 0.1% increase from the prior year, while coms are expected to increase nearly 1%. However, the company projects international revenues in the range of flat to down 5%. Declining international sales remains a concern for the company.”
BBY has been the subject of a number of other reports. Citigroup Inc. lifted their price target on shares of Best Buy from $32.00 to $40.00 and gave the stock a neutral rating in a research note on Wednesday, August 24th. BTIG Research reiterated a buy rating on shares of Best Buy in a research note on Tuesday, August 2nd. Vetr lowered shares of Best Buy from a strong-buy rating to a buy rating and set a $32.42 price target for the company. in a research note on Wednesday, June 15th. Deutsche Bank AG lifted their price target on shares of Best Buy from $32.00 to $41.00 and gave the stock a hold rating in a research note on Wednesday, August 24th. Finally, Bank of America Corp. restated a sell rating and set a $29.00 target price on shares of Best Buy in a research report on Wednesday, August 24th. Three equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and eleven have issued a buy rating to the stock. The stock has a consensus rating of Hold and an average price target of $37.69.
Shares of Best Buy (NYSE:BBY) opened at 38.90 on Tuesday. The stock has a market cap of $12.34 billion, a PE ratio of 12.66 and a beta of 1.47. The stock’s 50 day moving average is $37.92 and its 200 day moving average is $33.37. Best Buy has a 52-week low of $25.31 and a 52-week high of $40.58.
Best Buy (NYSE:BBY) last announced its quarterly earnings results on Tuesday, August 23rd. The technology retailer reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.14. Best Buy had a net margin of 2.62% and a return on equity of 22.44%. The firm earned $8.53 billion during the quarter, compared to analyst estimates of $8.40 billion. During the same period in the previous year, the business posted $0.49 earnings per share. The business’s revenue for the quarter was up .1% on a year-over-year basis. Equities research analysts forecast that Best Buy will post $3.05 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Tuesday, October 4th. Stockholders of record on Tuesday, September 13th were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.88%. The ex-dividend date was Friday, September 9th. Best Buy’s payout ratio is presently 36.48%.
In other news, VP Mathew Watson sold 1,030 shares of the company’s stock in a transaction dated Thursday, August 25th. The shares were sold at an average price of $39.45, for a total value of $40,633.50. Following the transaction, the vice president now directly owns 18,876 shares in the company, valued at $744,658.20. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 1.21% of the stock is currently owned by insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Boston Partners boosted its position in Best Buy by 1.8% in the second quarter. Boston Partners now owns 8,248,785 shares of the technology retailer’s stock worth $252,412,000 after buying an additional 148,547 shares during the last quarter. BlackRock Institutional Trust Company N.A. boosted its position in shares of Best Buy by 3.0% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 7,815,142 shares of the technology retailer’s stock valued at $239,143,000 after buying an additional 226,284 shares during the last quarter. Skandinaviska Enskilda Banken AB publ boosted its position in shares of Best Buy by 1.7% in the second quarter. Skandinaviska Enskilda Banken AB publ now owns 6,317,039 shares of the technology retailer’s stock valued at $193,301,000 after buying an additional 106,227 shares during the last quarter. BlackRock Fund Advisors boosted its position in shares of Best Buy by 4.2% in the second quarter. BlackRock Fund Advisors now owns 4,539,217 shares of the technology retailer’s stock valued at $138,900,000 after buying an additional 182,792 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of Best Buy by 9.1% in the second quarter. Dimensional Fund Advisors LP now owns 4,291,758 shares of the technology retailer’s stock valued at $131,326,000 after buying an additional 357,016 shares during the last quarter. Hedge funds and other institutional investors own 87.63% of the company’s stock.
Best Buy Company Profile
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 operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home.
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