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

Best Buy Co., Inc. (NYSE:BBY) shares were down 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 changed 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.

A number of other research analysts have also recently issued reports on the stock. Melius Research started coverage on shares of Best Buy in a research note on Monday, September 23rd. They issued a “hold” rating and a $100.00 price objective on the stock. Wedbush lifted their price target on Best Buy from $85.00 to $95.00 and gave the company a “neutral” rating in a research note on Friday, August 30th. Citigroup dropped their price objective on Best Buy from $109.00 to $101.00 and set a “buy” rating for the company in a research report on Wednesday. UBS Group decreased their target price on Best Buy from $123.00 to $115.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Bank of America increased their target price on shares of Best Buy from $70.00 to $80.00 and gave the stock an “underperform” rating in a report on Friday, August 30th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $100.82.

Institutional Investors Weigh In On Best Buy

A number of institutional investors have recently made changes to their positions in the stock. Ninety One UK Ltd bought a new stake in Best Buy in the second quarter valued at approximately $121,325,000. Thrivent Financial for Lutherans boosted its stake in shares of Best Buy by 4,337.6% in the 2nd quarter. Thrivent Financial for Lutherans now owns 1,099,495 shares of the technology retailer’s stock valued at $92,677,000 after purchasing an additional 1,074,718 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in shares of Best Buy by 55.7% in 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 last quarter. Swedbank AB acquired a new stake in shares of Best Buy during the first quarter worth $43,522,000. Finally, AQR Capital Management LLC raised its stake in Best Buy by 55.4% during the second quarter. AQR Capital Management LLC now owns 1,379,195 shares of the technology retailer’s stock worth $116,252,000 after buying an additional 491,781 shares during the last quarter. Institutional investors own 80.96% of the company’s stock.

Best Buy Stock Performance

The stock has a fifty day simple moving average of $94.16 and a two-hundred day simple moving average of $89.07. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.34 and a current ratio of 1.01. The stock has a market capitalization of $18.93 billion, a price-to-earnings ratio of 15.20, a P/E/G ratio of 2.44 and a beta of 1.47.

Best Buy (NYSE:BBY) last released its quarterly earnings data on Thursday, August 29th. The technology retailer reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.18. The company had revenue of $9.29 billion during the quarter, compared to analyst estimates of $9.23 billion. Best Buy had a net margin of 2.96% and a return on equity of 47.19%. Best Buy’s revenue for the quarter was down 3.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.22 EPS. Analysts forecast that Best Buy Co., Inc. will post 6.28 earnings per share for the current fiscal 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. The ex-dividend date of this dividend is Tuesday, December 17th. This represents a $3.76 annualized dividend and a yield of 4.27%. Best Buy’s payout ratio is currently 64.83%.

Best Buy Company Profile

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.