Best Buy (NYSE:BBY) Stock Price Down 7.6% on Analyst Downgrade

Shares of Best Buy Co., Inc. (NYSE:BBY) dropped 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. Approximately 4,461,743 shares traded hands during trading, an increase of 47% from the average daily volume of 3,032,734 shares. The stock had previously closed at $93.03.

Several other research analysts have also recently issued reports on BBY. Melius Research started coverage on Best Buy in a research report on Monday, September 23rd. They set a “hold” rating and a $100.00 target price on the stock. JPMorgan Chase & Co. upped their target price on shares of Best Buy from $111.00 to $117.00 and gave the stock an “overweight” rating in a research note on Friday, November 22nd. Bank of America raised their price target on shares of Best Buy from $70.00 to $80.00 and gave the company an “underperform” rating in a research report on Friday, August 30th. Telsey Advisory Group reduced their price objective on shares of Best Buy from $115.00 to $110.00 and set an “outperform” rating for the company in a research report on Tuesday. Finally, UBS Group dropped their target price on shares of Best Buy from $123.00 to $115.00 and set a “buy” rating on the stock in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, nine have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $100.82.

Hedge Funds Weigh In On Best Buy

Large investors have recently modified their holdings of the business. Charles Schwab Investment Management Inc. boosted its holdings in Best Buy by 4.1% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 6,164,953 shares of the technology retailer’s stock worth $636,840,000 after buying an additional 241,988 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Best Buy by 2.5% in the third quarter. Geode Capital Management LLC now owns 4,852,980 shares of the technology retailer’s stock worth $499,954,000 after acquiring an additional 120,185 shares during the period. Raymond James & Associates boosted its holdings in shares of Best Buy by 1.8% in the third quarter. Raymond James & Associates now owns 3,440,215 shares of the technology retailer’s stock worth $355,374,000 after acquiring an additional 62,452 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Best Buy by 8.3% in the second quarter. Dimensional Fund Advisors LP now owns 3,055,743 shares of the technology retailer’s stock valued at $257,569,000 after purchasing an additional 235,478 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its stake in shares of Best Buy by 55.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 2,863,291 shares of the technology retailer’s stock valued at $241,347,000 after purchasing an additional 1,024,824 shares during the period. Hedge funds and other institutional investors own 80.96% of the company’s stock.

Best Buy Price Performance

The business has a fifty day moving average of $94.16 and a 200-day moving average of $89.07. 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 firm has a market cap of $18.93 billion, a PE ratio of 15.20, a PEG ratio of 2.44 and a beta of 1.47.

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

Best Buy Dividend Announcement

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